Some environmental studies and other analysis have estimated that Bitcoin could be using the amount of energy some countries can use for an entire year. The second-largest crypto, Ethereum, has also not been so efficient when it comes to power usage.
Which cryptocurrencies are the most environmentally friendly today? Here is a list of the six most environmentally friendly crypto assets.
A cryptocurrency that has proven to be a very environmentally sustainable network is MIOTA. MIOTA is the main crypto-asset hosted by the IOTA network, especially with a distributed ledger technology called the Tangle. Due to its volatile nature, MIOTA crypto has created immense wealth for many investors in crypto.
The main thing that cryptos can do to prove environmental sustainability is choosing a suitable consensus algorithm. IOTA’s Tangle network uses an excellent option involving a fast probabilistic consensus and a slight inclusion of Proof of Work. Combining the consensus, MIOTA’s average consumption of power is relatively reduced to 0.00011 kilowatt-hours per transaction.
Recently, the IOTA network upgraded its system to a new one called Chrysalis, which was aimed to bring efficiency to the network. While the network will bolster transaction efficiency, that will not at all negatively impact the environment. The upgrade could help improve the environmental sustainability of IOTA to a whole better level. Migration to Chrysalis is currently ongoing.
XLM was released in 2014 as a network for transferring and storing money globally. The objective at launch was to create a network that would simplify the process of moving money across the globe and help in banking the big chunk of the unbanked.
The Poseidon Foundation released information showing that Stellar uses just about 0.00001kWh in a transaction. Thus, it proves to be more energy-efficient than Visa, and probably even XRP.
It has a unique type of consensus that involves federated voting. Its freedom from both Proof of Work and Proof of Stake makes it a highly energy-efficient network.
XRP is another crypto network that has proven excellent when it comes to overall environmental sustainability. Today, the currency is in the top 10 crypto’s by market cap, and it is used for paying for services or goods from Ripple Labs. It has an excellent payment and remittance network, similar to SWIFT. How does XRP prove to be eco-friendly?
According to research, XRP has been listed as among the most eco-friendly networks with meagre energy consumption.
For instance, Infographic platform statistics compared the environmental consumption of different platforms, including Bitcoin, Ether, Visa, and Ripple. The result showed that Ripple uses the least amount of power, way lower than the other platforms. The average transaction power usage by the Ripple network is said to be 0.0079kWh.
Its efficiency by completing 1500 transactions every second also contributes to its eco-friendly nature. Ripple has a custom consensus system called RPCA, which helps in fostering efficiency during transaction validation.
Cardano is among the greenest cryptocurrencies in the crypto world today. Foremost, the platform provides a vast array of services aiming to be a center of innovation like Ethereum. In Cardano, users will raise dApps, digital contracts, art contracts, and many more algorithms.
The platform has instituted policies that distinguish it from the other crypto assets, thus creating a green earth. They use a Proof of Stake consensus algorithm to mine new crypto assets, as opposed to the environment degrading Proof of Work consensus algorithm.
Additionally, even with its focus on a green environment, Cardano still offers highly efficient services, especially in speed. When compared to an extensive network like Bitcoin, which only serves 5-8 transactions per second, Cardano serves about 1k transactions.
Providing speedy transactions in batches reduces the average electricity costs used, making it a highly eco-friendly platform. According to some recent research, Cardano network consumes 6GWh of power, thus proving highly energy efficient.
EOS as a crypto network should feature the most eco-friendly cryptocurrencies in this list. The platform was natively designed to aid crypto developers to create DApps easily, thus helping in the adoption of blockchain technology globally. What Policies are set for EOS in terms of environmental sustainability?
The blockchain, launched back in 2018, leverages delegated Proof of Stake as its primary consensus method. That makes the platform use way less electricity than PoW systems. EOS is also excellent for scalability since it can complete about 4 thousand transactions per second, reducing the average power consumption per second.
Due to its environmental conservation policy, Upland, an NFT metaverse, chose to use EOS as its leading partner in service delivery. EOS is at least 66 thousand more energy-efficient than Bitcoin.
Polkadot is a crypto network introduced with the primary object of allowing arbitrary data and tokens to be moved across the blockchain network. It generally is a multichain application, providing unique options for cross-chain computations.
Like all the crypto assets and networks mentioned earlier, Polkadot has had an excellent plan to help environmental conservation. It leverages a unique consensus system called Nominated PoS, which involves the nomination of validators to power the network. The DOT coin mining system is the main contributor to Polkadot being on this list.
After looking into the crypto world, it’s clear that although there are thousands of cryptocurrencies, very few have taken the initiative to ensure environmental sustainability. The assets mentioned above are the most eco-friendly crypto coins today.
The power consumption of MIOTA, EOS, ADA, XLM, XRP, and DOT are lower than many other assets, with some being even lower than Visa. Other assets like Ethereum are already working hard to introduce new environmentally sustainable assets, especially by introducing ETH 2.0.