As the world becomes more environmentally conscious, there’s growing concern about the environmental impact of cryptocurrencies. Bitcoin and other cryptocurrencies require a significant amount of energy to operate, which has led to criticism about their sustainability.
However, not all cryptocurrencies are created equal when it comes to sustainability. Several of them are designed with sustainability in mind, using innovative technologies and algorithms that minimize energy consumption.
In this article, you will learn more about the best eco-friendly cryptocurrencies available today.
Top 15 Eco-Friendly (Sustainable) Cryptocurrencies
Cardano (ADA)
Cardano was founded in 2015 by IOHK, a blockchain research and development company led by Charles Hoskinson. Charles is also known as one of the co-founders of Ethereum.
Its purpose is to provide a decentralized platform for the development of smart contracts and decentralized applications (dApps). Cardano uses a proof-of-stake consensus mechanism and operates on a multi-layered architecture that separates the ledger from the computation layer, making it more flexible and scalable.
Cardano’s approach to sustainability is centered around its proof-of-stake consensus mechanism, which uses significantly less energy than proof-of-work systems.
Chia (XCH)
Bram Cohen, the inventor of the BitTorrent protocol, started Chia in 2017.
Its purpose is to provide a more energy-efficient alternative to Bitcoin by using a proof-of-space-and-time consensus mechanism. Chia’s approach is to use unused hard drive space as a way to secure the network instead of the energy-intensive proof-of-work mechanism used by Bitcoin.
Chia is designed to be more eco-friendly and sustainable than other cryptocurrencies. By utilizing unused hard drive space, Chia reduces energy consumption and avoids the need for expensive mining hardware.
Algorand (ALGO)
Algorand was founded by Silvio Micali, a computer science professor at MIT, in 2017.
Algorand is a decentralized platform for building and deploying dApps. Algorand uses a proof-of-stake consensus mechanism that’s designed to be more secure and efficient than other proof-of-stake systems.
Algorand’s focus on efficiency and scalability makes it a more sustainable blockchain platform.
Hedera (HBAR)
Hedera was created in 2018 by Dr. Leemon Baird, Mance Harmon, and Paul Madsen.
Its purpose is to provide a decentralized platform for building and deploying dApps. Hedera utilizes a distributed consensus algorithm called the Hashgraph consensus algorithm.
This consensus mechanism can achieve high throughput and fast finality, allowing for thousands of transactions to be processed per second with low latency.
Hedera’s emphasis on the environment is based on its use of proof-of-stake and the energy-efficient algorithms it uses to secure the network.
IOTA (MIOTA)
IOTA was founded in 2015 by a team of entrepreneurs and computer scientists, namely David Sønstebø, Dominik Schiener, Dr. Serguei Popov, and Sergey Ivancheglo.
IOTA was designed to provide a decentralized platform for the Internet of Things (IoT). It uses a unique consensus mechanism called the Tangle that enables feeless and scalable transactions on the IOTA network.
IOTA’s approach to sustainability is centered around its use of the Tangle and its ability to facilitate machine-to-machine transactions without the need for a middleman, reducing energy consumption.
IMPT (IMPT)
IMPT was founded in 2019 by Dr. Bin Li, who previously worked on the IOTA project.
Its purpose is to provide a decentralized platform for the IoT that’s more secure and efficient than other blockchain-based IoT platforms. IMPT uses a proof-of-reputation consensus mechanism that’s designed to be more secure and efficient than proof-of-work and proof-of-stake mechanisms.
The goal of IMPT is to create a sustainable and secure IoT platform that can be used for a variety of applications.
Tezos (XTZ)
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In 2018, a couple named Arthur and Kathleen Breitman created Tezos.
Tezos was designed to provide a decentralized platform for building and deploying smart contracts and dApps. Tezos uses a proof-of-stake consensus mechanism that’s designed to be more efficient and secure than other proof-of-stake systems.
Tezos’ focus on sustainability is centered around its use of proof-of-stake and its ability to self-amend through on-chain governance, which reduces the need for hard forks and creates a more sustainable and adaptable platform.
Avalanche (AVAX)
Emin Gün Sirer, a computer science professor at Cornell University, founded Avalanche in 2020.
Its purpose is to provide a decentralized platform for building and deploying smart contracts and dApps. Avalanche uses a consensus mechanism called Avalanche, which is designed to be more efficient and scalable than other consensus mechanisms.
Avalanche’s emphasis on the environment is based on its use of the Avalanche consensus mechanism and its ability to support multiple subnets, which creates a more adaptable and sustainable platform.
Flow (FLOW)
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Flow was founded in 2019 by Dapper Labs, the creators of the popular game CryptoKitties.
Its purpose is to provide a decentralized platform for building and deploying games, dApps, and digital assets. Flow uses a proof-of-stake consensus mechanism that’s designed to be more efficient and secure than other proof-of-stake systems.
What makes Flow green is its use of proof-of-stake and its ability to support multiple applications, which creates a more adaptable and sustainable platform.
Solana (SOL)
Solana was founded in 2017 by Anatoly Yakovenko.
Solana was built to provide a decentralized platform for building and deploying dApps. It uses a unique consensus mechanism called Proof of History, which is designed to be highly scalable, fast, and energy-efficient while also providing strong security.
Solana’s focus on sustainability is centered around its use of Proof of History and its ability to support high throughput, which creates a more sustainable and efficient platform.
Ethereum (ETH)
Ethereum is the second largest cryptocurrency by market cap, founded in 2015 by Vitalik Buterin.
Its purpose is to provide a decentralized platform for building and deploying smart contracts and dApps. Ethereum’s ecosystem has facilitated the growth of many innovations, including decentralized finance (DeFi), non-fungible tokens (NFTs), and others.
Ethereum’s emphasis on the environment is based on its recent transition to a proof-of-stake consensus mechanism, which reduced its energy consumption by over 99%.
Nano (NANO)
Nano, previously known as RaiBlocks, was founded in 2014 by Colin LeMahieu.
Nano was created as a fast and feeless cryptocurrency that can be used for everyday transactions. Nano uses a unique consensus mechanism called the block-lattice, which provides a secure and decentralized way of reaching consensus while also allowing for fast transaction confirmation times and low transaction fees.
Nano’s focus on sustainability is centered around its use of the block-lattice and its ability to facilitate fast and feeless transactions, which reduces energy consumption.
Stellar (XLM)
Stellar was co-founded in 2014 by Jed McCaleb, the co-founder of Ripple.
The purpose of Stellar is to provide a decentralized platform for cross-border payments and asset issuance. Stellar uses a consensus mechanism called the Stellar Consensus Protocol, which is designed to be more efficient and scalable than other consensus mechanisms.
What makes Stellar green is its Stellar Consensus Protocol and its ability to facilitate fast and low-cost cross-border payments, which reduces energy consumption and supports sustainable financial inclusion.
Ripple (XRP)
Ripple was founded in 2012 by Chris Larsen and Jed McCaleb.
Its purpose is to provide a decentralized platform for cross-border payments and asset issuance. Ripple uses a consensus mechanism called the Ripple Protocol Consensus Algorithm, which is designed to be more efficient and scalable than other consensus mechanisms.
Ripple’s emphasis on the environment is based on its use of the Ripple Protocol Consensus Algorithm and its ability to facilitate fast and low-cost cross-border payments. Additionally, Ripple has partnered with renewable energy companies to offset its carbon footprint, further reducing its environmental impact.
SolarCoin (SLR)
SolarCoin was founded in 2014 by Nick Gogerty and Francois Sonnet.
SolarCoin aims to incentivize solar energy production and adoption by providing a financial reward in the form of SolarCoins to solar energy producers. SolarCoin uses a proof-of-work consensus mechanism that requires miners to verify solar energy production. Once verified, miners are rewarded with SolarCoins.
SolarCoin aims to reduce carbon emissions by promoting the use of solar energy. It’s green and sustainable because it encourages the production of clean energy.
Final Words
Sustainable cryptocurrencies have emerged as a viable alternative to traditional cryptocurrencies. They were designed to minimize energy consumption and promote sustainability, making them a valuable tool for those looking to reduce their carbon footprint.
From Cardano and Chia to Algorand and Ripple, there are several sustainable cryptocurrencies that are worth exploring. As the world continues to grapple with the challenges of climate change, these projects are providing a way to participate in the crypto economy without sacrificing our commitment to sustainability.
By embracing these innovative cryptocurrencies, we can build a greener, more sustainable future for all.
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