Eco-friendly Cryptocurrencies You Can Invest in :
Cryptocurrencies have been criticized for more than just their potential financial risk. There have been several conversations about the potential environmental damage caused by crypto. For example, an estimation by Digiconomist stated that bitcoin alone causes emissions of 73 million tons of carbon dioxide annually. A 2022 report also identified that 25.4 million tons were emitted from Ethereum and this reduced to 0.01 million when it transitioned to proof of work.
To summarize, the impact is that the greater the volume of cryptocurrency trading, the higher the corresponding energy consumption. In response to this growing problem, certain eco-friendly cryptocurrency options were developed and will be briefly covered in the following paragraphs.
Eco-Friendly Cryptocurrencies To Consider
Algorand is one of the few cryptocurrencies that has made a serious effort to reduce its environmental impact. The blockchain platform Algorand is one of several alternatives to Ethereum because of its support for smart contracts. Because it employs the proof-of-stake approach to validate transactions, its carbon footprint was already relatively small. In April of 2021, Algorand announced that its blockchain would be entirely carbon neutral. Additionally, this cryptocurrency has partnered with ClimateTrade, a group that works to enhance business sustainability credentials. To achieve its goal of becoming carbon-negative, Algorand has built a smart contract that automatically compensates for the carbon emissions produced by every transaction.
The new crypto project was designed from the ground up to be eco-friendly and help mitigate the global warming catastrophe. Over 10,000 well-known firms, including Microsoft, LEGO, and GameStop, have joined up with IMPT to reduce their carbon footprint by encouraging their customers to shop sustainably. Carbon credits are available for purchase or acquisition, with the proceeds going to hundreds of different environmentally friendly projects and organizations. Carbon credits can be bought, sold, or kept as investments. They can also be turned in for unique NFTs.
3. GreenTrust (GNT)
GreenTrust is a distributed blockchain that uses zero carbon and aims to help the world achieve carbon neutrality by 2050. The Proof-of-Stake Authority (PoSA) consensus technique is used by GreenTrust, which is powered by Binance Smart Chain and is fast, cheap, and efficient. The smart contract for the network was audited in June of 2021 by Techrate, and partnerships between the GreenTrust project and others are being forged in an effort to decarbonize the world economy.
Cardano’s ‘Proof of Stake’ consensus technique, in which users buy tokens and “stake” them in order to gain access to the network, makes it fundamentally more energy efficient than Bitcoin. The founder of Cardano has claimed that the cryptocurrency network consumes only 6 GWh of power, which is an incredible feat of energy efficiency.
5. New Binance Smart Chain Project: Battle Infinity (IBAT)
The Binance Smart chain (BSC) is a Proof of Staked Authority (PoSA) network on which IBAT operates as a BSC token. Less than one percent of Bitcoin’s annual Terawatt-hour (TWh) consumption is used by the PoSA consensus agreement process, making it more energy efficient. As a company, Binance is also concerned about protecting the natural world. Many coins, like Battle Infinity, opt to construct on the Binance chain due to its favorable environmental, social, and governance (ESG) standards and low gas fees.
Other eco-friendly crypto projects to think about are Avalanche (AVAX), Powerledger (POWR), Flow (FLOW), Harmony (ONE), and Solana (SOL) (SOL). The goal of the green tech initiative is to inspire both individuals and companies to reduce their carbon footprint and contribute to environmental initiatives.