Cryptocurrencies have always been under scrutiny for their environmental impact, with Bitcoin being blamed as a significant contributor to carbon emissions. Although this negative publicity is set to change as Bitcoin mining firms are now turning to renewable energy sources for sustainability’s sake, there are still alternative cryptocurrencies that prioritize sustainability and offer innovative solutions to promote a greener environment. These eco-friendly cryptocurrencies are gaining traction among users who advocate for sustainable practices.
In this article, we will explore five such cryptocurrencies that are actively working towards a more environmentally friendly future based on the report compiled by MUO.
1. Hedera: Pioneering Sustainable Solutions
Hedera is a public network that stands out as one of the most energy-efficient cryptocurrencies. It consumes significantly less energy per transaction compared to Ethereum, making it an environmentally conscious choice.
Based on a report published by the University of London, the crypto just uses an average of 0.000003 kWh per transaction. This makes it approximately 3,300 times more efficient than Ethereum.
By leveraging Hedera’s low-energy network, organizations can build sustainable solutions while minimizing their carbon footprint. Hedera also enables fair carbon offsetting markets, promotes the exchange of climate assets, and facilitates the creation of decentralized auditable data logs. These features enhance trust, transparency, and sustainability within the cryptocurrency ecosystem.
2. IOTA: Innovative Solutions for Environmental Challenges
IOTA distinguishes itself as a network that consumes minimal energy and is specifically tailored to function efficiently on low-tech devices. It employs innovative approaches to address environmental problems, such as storing environmental data in an immutable record called the IOTA Tangle.
According to IOTA, the IOTA 2.0’s Coordinator-less node software prototype, GoShimmer, only utilizes one watt-second energy per transaction on a single node. That’s just about the same amount of energy required to light up a single Christmas tree bulb in a second.
The platform empowers organizations to make evidence-based policy interventions and better manage natural resources. Furthermore, IOTA collaborates with diverse stakeholders to build collaborative platforms that contribute to the preservation of critical ecosystems and the fight against climate change.
3. Chia Network: Harnessing Idle Storage Resources
Chia Network sets itself apart by utilizing a unique consensus mechanism called Proof of Space Time (PoST), which reduces energy consumption by utilizing unused hard drive space instead of computational power.
By encouraging the use of idle storage resources, Chia Network consumes significantly less energy compared to Bitcoin. According to the source, it only uses 1% of the power required by Bitcoin.
Additionally, Chia Network actively supports global cooperation in emissions offsetting through the Climate Action Data Trust, a decentralized platform for storing environmental data. It also collaborates with various organizations to ensure the establishment of verifiable ownership for digital carbon assets.
4. Energy Web Token: Powering Decarbonization Solutions
Energy Web Token is specifically designed to facilitate the transition to a more sustainable and decentralized ecosystem for energy-related activities. It offers solutions for asset management, data exchange, and Green Proofs, which enable enterprises and organizations to develop verifiable data repositories for their decarbonization commitments.
Energy Web Token actively creates demand for clean energy and low-carbon solutions by developing detailed tracking and auditing systems for clean energy market stakeholders.
5. Powerledger: Enabling a Responsive Renewable Energy Market
Powerledger focuses on creating a more responsive market for renewable energy solutions. It develops platforms that allow households and organizations to track, trace, and trade renewable energy, reducing reliance on non-renewable energy sources.
Through partnerships with green energy retailers and collaborative projects in various countries, Powerledger promotes the adoption of clean energy solutions and contributes to the global transition to environmentally friendly energy.
Final Thoughts
As the environmental impact of cryptocurrency mining becomes a growing concern, several cryptocurrencies are stepping up to offer more sustainable alternatives. The five cryptocurrencies mentioned in this article, namely Hedera, IOTA, Chia Network, Energy Web Token, and Powerledger, are actively working towards a greener future.
Whether through energy-efficient designs, innovative solutions, or supporting environmental initiatives, these cryptocurrencies are leading the way in promoting sustainability within the crypto space. By adopting these eco-friendly alternatives, users can contribute to the global transition towards a more environmentally friendly and sustainable future.