Everything You Need To Know About Eco-friendly Cryptocurrencies To Invest In.

What makes cryptocurrencies so harmful to the environment?

Environmentalists are concerned about the amount of computer processing power required to mine cryptocurrencies.

The mining procedure includes the following steps:

  • In exchange for coins, high-powered computers compete to verify transactions.
  • Large quantities of electricity are required to run complicated algorithms.
  • Coal, the dirtiest fossil fuel, is an example of a non-renewable energy source.

Is there a crypto that isn't harmful to the environment?

While environmentalists and Musk agree that bitcoin "mining" consumes a significant quantity of fossil fuels, there are other, more environmentally friendly cryptocurrencies that cause less harm to the world.

These could help to alleviate some of the concerns about cryptocurrencies and the environment.

Smaller currencies may appear to have a lesser carbon footprint than larger currencies, but this could simply be due to fewer transactions. However, some digital assets are more energy efficient, which means they have a lower environmental impact.

In terms of energy consumption for a single transaction, here's a comparison between some of the most environmentally friendly cryptocurrencies and bitcoin.

Cryptocurrency Transaction cost in Kilowatt hour (KWh) :


There are, however, some cryptocurrencies that use less energy than bitcoin. Here are the top 9 most environmentally friendly cryptocurrencies we could uncover, in no particular order.

1. Nano (NANO)

Nano is a long-term cryptocurrency that is free to use due to its lack of reliance on mining. To reach consensus, this scalable and low-latency encryption uses a voting method. As a result, it is a low-energy cryptocurrency with one of the smallest carbon footprints.

Why is nano a green cryptocurrency?

The Open Representative Voting (ORV) consensus process is managed by Nano. Users vote on each transaction in this system.

A block-lattice ledger is used in the Nano system to process asynchronous transactions. Each node protects each transaction individually, which is irreversible and completed in less than a second.

Only account owners can sign blocks on their account chains using this system. This also safeguards the ecosystem as a whole from harmful actors.

2. Cardano (ADA)

Cardano (ADA) was the first peer-reviewed blockchain, and it serves as a currency, as well as a platform for digital contracts and decentralised applications (DApps).

The Cardano network can process 1000 transactions per second, whereas the Bitcoin blockchain can only handle 7 transactions per second. Charles Hoskinson, a co-founder of Ethereum, designed it, and many feel it has the ability to compete with the Ethereum network.

Why is cardano a green cryptocurrency?

Ouroboros is a proof-of-stake consensus used by Cardano. This was the first peer-review system for blockchain, making ADA a long-term coin that is also one of the most popular.

The Cardano network's foundation is designed to scale to global needs without sacrificing security, while also providing a transparent payment system in an energy-efficient manner.

3. Stellar (XLM)

Stellar is a cryptocurrency that was founded in 2014 as a fork of the Ripple network. It is an energy-efficient cryptocurrency. Each transaction requires only a small number of distributed nodes to confirm it.

Furthermore, it aspires to build a seamless link between traditional banking and digital currencies. World-famous corporations (IBM, Deloitte) and even governments have already adopted the technology (Nigeria, France, The Philippines, India, Ukraine).

Why is stellar considered to be a green cryptocurrency?

XLM is a low-cost cryptocurrency that can be used to ease financial transactions. Because it does not rely on mining, it has a minimal carbon footprint. Users of the network can generate their own tokens for long-term projects.

The SCP, the Stellar network's consensus protocol, validates network transactions using a list of trustworthy nodes. Compared to the proof-of-work and proof-of-stake algorithms, this makes the process much faster and more efficient. As a result, energy usage is kept to a minimum.


IOTA is a more stable cryptocurrency that isn't as volatile as some investors would like. The network, on the other hand, employs a method that communicates a low overall level of energy usage, making IOTA an environmentally friendly cryptocurrency.

Why is IOTA a green cryptocurrency?

IOTA (MIOTA) uses a proof-of-work process to reach consensus, however it does it with the Fast Probabilistic Consensus, which requires very little energy. In fact, a PhD student found that Iota's energy consumption per transaction is only 0.11 watt-hours.

That energy consumption is far lower than that of today's large financial networks, and it is predicted that it could be reduced. IOTA's network energy consumption can be lowered by up to 95% of what it now consumes. However, future enhancements are still in the works.

5. EOS (EOS)

EOS is a decentralised operating system built on blockchain, not just a cryptocurrency. Developers can use it to construct dApps and smart contracts that are safe, transparent, and compliant. The community's rules must be followed by all nodes on the EOS network. Daniel Larimer, the creator of Bitshares and Steem, launched the platform.

Why is EOS a green cryptocurrency?

EOS is one of Ethereum's primary competitors. Its goal is to process one million transactions per second. Delegated Proof of Stake (DPoS) is the consensus mechanism used by the network. This allows it to create a new block every 0.5 seconds, and it is a technology-based democracy, as voting and elections are used to protect the blockchain and validate the next block.

This alternative to the traditional PoS is designed to be environmentally friendly and energy-efficient. For many projects, like Tezos, it is a favoured choice.

6. Ripple (XRP)

Ripple is a decentralised peer-to-peer network that enables for money transfers and smooth conversions between different currencies all around the world. The network's native currency, XRP, serves as an intermediary medium of exchange. The Ripple network is now being used by financial institutions for quick money transfers.

Why is ripple a green cryptocurrency?

The Ripple Protocol Consensus Algorithm is used to mine XRP (RPCA). Simply said, before a transaction can be added to the blockchain, it must be authorised by at least 80% of the network's validators. As a result, XRP is a green cryptocurrency. It operates on a fast, efficient, and secure network that enables for low-fee transactions.

7. Algorand (ALGO)

Algorand is a blockchain platform that supports smart contracts and employs proof-of-stake to make it scalable and safe. Pure PoS is accessible and requires far less energy than other cryptocurrencies.

Why is algorand a green cryptocurrency?

Algorand validates blocks using the proof-of-stake method, rather than mining, in order to pave the way for a long-term blockchain network architecture. When it partnered with ClimateTrade, the initiative pleaded to become the first carbon-neutral blockchain.

8. SolarCoin (SLR)

SolarCoin is a decentralised coin that intends to encourage people to participate in real-world environmental initiatives. The cryptocurrency was launched in 2014, and one token is created for every megawatt-hour of solar energy generated.

Why is solarcoin a green cryptocurrency?

SolarCoin employs the proof-of-stake consensus mechanism, which is expected to become more efficient as the network of users increases.

For each Megawatt hour created by their solar technology, users receive one SolarCoin. The system currently relies on humans inputting documents, but IoT will be used to make automatic updates from the solar system in the near future.

The entire globe benefits by motivating people to utilise and produce solar energy. Because the solar energy provided by individuals who support the initiative is greater than what the network requires, the SolarCoin system is not only energy-efficient, but it is also getting closer to having a zero-carbon footprint.

9. Ethereum 2.0 (ETH)

After Bitcoin, Ethereum is the second most popular blockchain platform, with Ether as its cryptocurrency (ETH). Users can create and use applications on the public ledger, as well as pay with ETH.

The proof-of-stake consensus process is used by the Ethereum network, which is bloating the network and causing prohibitive network fees for ETH transactions.

Because the network has grown so much in recent years, Vitalik Buterin, the network's founder, chose to replace the proof-for-work mechanism with a proof-of-stake mechanism.

Ethereum 2.0 aims to be a blockchain that is more scalable, safe, and long-lasting. The upgrade will take place in 2021, and by 2022, we should be able to state that Ethereum is an environmentally friendly coin.

Where can I look for environmentally friendly cryptocurrencies?

Most of the cryptocurrencies we use today are still based on the model established by the first cryptocurrency, Bitcoin. This is the mining model, in which new tokens are created. The proof-of-work consensus method is the most well-known, and it is an extremely energy-intensive algorithm.

Are cryptocurrencies environmentally friendly? It is debatable. They could be, but you should examine into how their blockchain is constructed.

To ensure the integrity of the blockchain while being energy efficient and keeping the carbon imprint to a minimum, an eco-friendly cryptocurrency should use alternate consensus mechanisms, such as the proof-of-stake algorithm.

The market dynamic is another aspect of a long-term cryptocurrency. When the price of bitcoin, the crypto with the highest carbon footprint, falls, so does the energy use. Miners are no longer rewarded for their efforts, and some will even turn off their computers and cease mining if the process is no longer viable.

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