The cryptocurrency market is booming. Many people want to learn how cryptocurrency works and heavily invest in hardware and software in an attempt to join the Bitcoin mining party.
But there’s one little concern: is it eco-friendly? It goes without saying that having a Bitcoin or Ethereum wallet might be a profitable solution for entrepreneurs who are willing to take the risk.
Well, if it’s at the expense of ruining our nature, what is the point? In this article, we will see how to buy cryptocurrency without worrying about causing a potential natural disaster.
Ever since people started to invest in cryptocurrency, the industry has been known as a profit machine. But the sacrifices made were too huge not to be noted by ecological experts.
Proof of Work flaws and the reason why the world has reacted to cryptocurrencies
Proof of Work has been the most impactful algorithm thus far. It’s not a coincidence that all legacy coins operate on it. It’s very safe, as each transaction has to be verified by all computers in the network. However, it is not perfect, and it consumes a lot of energy.
Because every transaction has to be verified across all computers, it requires harder and harder to verify each transaction.
As a result, we can now see some fascinating statistics: according to Forbes, a single Bitcoin transaction is worth well over $100 in electricity bills. It consumes more than 1 kW of electricity which makes it very unproductive. Sooner or later, a change was imminent. And luckily, there we have it.
The rise of sustainable crypto coins
A truly sustainable cryptocurrency is one with a strong emphasis on its users’ ability to transact on their terms. These cryptos are constantly working to ensure that their users’ needs and wants are met, and this dedication manifests in many ways. They are climbing the ranks because they tend to offer something users want today.
We already mentioned Proof of Work as the reason why it isn’t the best possible way to remain eco-friendly today. Even Ethereum developers admitted that, and they will change to Proof of Stake hashing soon, with Ethereum 2.0. The difference will result in more than 99% increased energy efficiency which is considered pivotal for the success of the cryptocurrency.
But there are other pioneers, too. Let’s see them.
Unlike many digital currencies that use a network of miners to record transactions on the blockchain and validate new transactions, Cardano has developed a system called Ouroboros. This proof-of-stake system is the first of its kind, using a Proof-of-Stake consensus algorithm that allows users to purchase tokens in order to join the blockchain and validate new transactions. With Cardano, you can get up to a thousand transactions per minute which is an insane rate.
Solarcoin is a cryptocurrency that lets users make money by using solar energy. Its peer-to-peer platform helps users earn coins based on the amount of solar electricity they create. The big advantage of Solarcoin is that you can use it to purchase anything — from groceries to gadgets. You can also use it to offset your carbon footprint and create new, sustainable revenue streams for your business.
Bitgreen is a crypto that rewards its users for sustainable behavior. The online ledger system records transactions within ten-minute intervals, and pays out users who use bitgreen to buy green products or services via the bitgreen website. The entire Bitgreen network is focused on providing sustainable solutions.
Compared to most cryptocurrency platforms out there, IOTA is infinitely more energy efficient — thanks to the innovative Tangle protocol. Tangle’s foundation is an open-source, peer-to-peer network that does not require miners or third parties. That is an enormous difference, compared to legacy solutions.
Elon Musk’s old favorite is a legacy coin. But let that not distract you that among all big coins out there, it is the one that appears to be “the greenest”. While it doesn’t hold the same value as some of the other names in our list, it is the biggest project which can be labeled as “green,” and it is a notable mention.
Cryptocurrencies are not what they used to be. While transaction safety and speed were necessary, nowadays, people tend to value more sustainable projects. The current market direction is clear: consumers want to support startups that are eco-friendly and sustainable. In an attempt to become the go-to platform for blockchain startups.