Back when Bitcoin made its debut and other cryptocurrency assets followed suit, the globe was surprised to see the advent of financial technology. However, this excitement dropped after the power consumption of cryptocurrency mining surfaced. With time, miners found new ways to make the process more sustainable. This, however, did not settle well with many.
Nevertheless, the crypto-verse is home to a plethora of assets that do not consume too much energy. Here’s a list of crypto networks that do not cause increased carbon emissions and are eco-friendly.
Ethereum took a significant step towards going green last September when it switched from a proof-of-work [PoW] to a proof-of-stake [PoS] mechanism. Unlike PoW, PoS algorithms rely on users staking their tokens as collateral to validate transactions rather than using such energy-intensive methods. This can drastically lower energy consumption rates and lessen the carbon footprint of the network.
Following the Merge, Ethereum lowered its carbon footprint and slashed its energy use by 99.95%. Considering how Ethereum is a popular cryptocurrency network in the market, this update helped the ecosystem as a whole.
Algorand is the first carbon-negative blockchain in the world. It was formulated with keeping the environment in mind. Move over PoS — Algorand uses a special pure proof-of-stake [PPoS] consensus method that yields 120 million times fewer carbon dioxide emissions than Bitcoin for each transaction carried out.
This wasn’t all. Additionally, the network put into place the first green smart contract. This will automatically set away a certain percentage of each transaction fee to reduce carbon emissions. The blockchain network also uses a “verifiable random function”, or VRF, to choose validators at random who will make new blocks.
All things considered, Algorand is an energy-efficient cryptocurrency platform thanks to its PPoS consensus algorithm and these other features.
Solana had a terrible year. However, according to a report published by the Crypto Carbon Ratings Institute [CCRI] in January, out of the “Ethereum-killers” of Cardano, Polkadot, Avalanche, Algorand, and Tezos, Solana was the most energy-efficient PoS network. As per the CCRI analysis, Solana requires 0.166 watt-hours [Wh] of electricity every transaction, which is significantly less than Bitcoin’s 1,722.24 kWh per transaction. This equals the energy usage of just two Google searches.
Solana has a prominent presence in the NFT space. By enabling the simultaneous production of up to 10 NFTs using compressed NFTs, energy consumption is decreased. Moreover, increasing the transaction size will result in a decrease in the amount of computational power required for a specific set of transactions.
Cardano is more efficient than Bitcoin by over 37,500 times and uses biodegradable technology rather than energy-intensive mining to create its native asset. As a result, Cardano envisions a future for both NFTs and cryptocurrencies in which increased coin supply does not result in a high energy cost.
The PoS consensus algorithm used by Cardano allows individuals to participate in the network by purchasing tokens. This helps conserve an incredible amount of energy; according to the creator of Cardano, Charles Hoskinson, the cryptocurrency network only uses 6 GWh.
Since Polygon uses the PoS consensus process, it is already fairly ecologically friendly. Additionally, it is a Layer-2 blockchain created on the Ethereum network. Therefore, following the Ethereum Merge, its carbon footprint has drastically decreased.
After the Ethereum Merge, the CCRI noted that Polygon’s yearly carbon emissions decreased to 56.22 tonnes of carbon dioxide equivalent [tCO2e]. From its yearly emissions of 94,782 tCO2e before the Merge, this is a staggering 99.92% decrease.
The network even hopes to become carbon-neutral by the end of 2022. The blockchain network went on to set aside $20 million for this initiative.
Justin Sun‘s Tron network also made it to the list. As per CCRI, Tron is one of the most eco-friendly blockchains in the market. According to the analysis, the network used 162,868 kWh of energy in 2021. This is 99.9% less than BTC as well as ETH. Tron’s consensus method, which uses delegated proof-of-stake [DPoS], is thought to be more energy-efficient than PoW networks.