- Various cryptocurrencies are shifting towards sustainability, presenting green alternatives to Bitcoin
- These eco-friendly currencies employ diverse strategies, from energy-efficient networks to promoting renewable energy sources
In the wake of growing environmental concerns, the cryptocurrency market has begun to pivot. While Bitcoin has come under scrutiny for its environmental impact, numerous other cryptocurrencies have emerged, which present a more sustainable footprint.
— IOTA (@iota) July 7, 2023
Cryptocurrencies: Champions of Sustainability?
- Hedera: Sporting a minimal 0.000003 kWh energy consumption per transaction, Hedera stands out as one of the most sustainable public networks, 3,300x more efficient than Ethereum, according to a study by University College London. Its energy-efficient design allows organizations to develop and deploy sustainable solutions with a minimal carbon footprint. This commitment to sustainability has drawn in startups and entities focused on Environmental, Social, and Governance Solutions.
- IOTA: IOTA’s low-energy network has fostered innovation for solving environmental issues. The “IOTA Tangle,” an immutable data ledger, enables organizations to formulate evidence-based policies for better resource management. Collaborating with multiple stakeholders, IOTA has facilitated platforms for preserving ecosystems and combatting climate change.
- Chia Network: Utilizing a unique consensus mechanism known as Proof of Space Time (PoST), Chia Network capitalizes on unused hard drive space, reducing the need for high-energy mining hardware. This network consumes less than 1% of the power used by Bitcoin, promoting the use of idle storage resources while facilitating global emissions offsetting.
- Energy Web Token: Aiming to facilitate the transition to a sustainable and decentralized energy ecosystem, Energy Web Token employs Web3 technologies. It provides solutions for asset management, data exchange, and Green Proofs, fostering a mission of powering decarbonization solutions across different countries.
- Powerledger: Powerledger aids the environment by creating a more responsive market for renewable energy solutions. It develops applications that enable various groups to track, trace, and trade renewable energy, indirectly reducing reliance on non-renewable energy sources like fossil fuels.
- SunContract: SunContract serves as the intermediary between energy consumers seeking to reduce energy costs and energy producers striving to maximize returns from surplus energy. It connects consumers directly with local renewable energy producers, encouraging the use of clean energy options and reducing carbon emissions.
- Carboncoin: Carboncoin is unique in its approach to environmental restoration, supporting tree planting initiatives alongside promoting sustainable practices. It generates funding for planting biodiverse forests across different countries and rewards those who support its goals.
Despite the environmental toll of cryptocurrency mining, new projects have come forth to offer more eco-friendly solutions. The push towards environmental sustainability is rapidly becoming a determining factor for the acceptance and success of cryptocurrency projects.