10 Most Sustainable & Environment Friendly Cryptocurrencies

what are the most sustainable and environment friendly cryptocurrencies to look for? A lot of energy is required to mine cryptocurrencies which eventually and inevitably harms the environment.

This can cause an imbalance in the life cycle and harm plant, animal, and human lives.

According to the Bitcoin Electricity Consumption Index published by Cambridge University, around 116 Twh or Terawatt-hours of electricity is required for mining crypto coins per year.

This is more than the amount required by Argentina alone or Netherlands and the Philippines combined. In addition to that, the process also generates a huge amount of waste each year, about 11.5 kilotons.

These are the primary reasons that have raised a lot of concerns among the environmentalists and skeptics regarding the effects of the climate due to the huge energy consumption during mining crypto coins.

This causes excessive carbon emissions. It results in a climate change which is a primary concern today for all industries, governments, and even individuals.

Therefore, the trend now is to move towards more sustainable and eco-friendly crypto tokens instead. Check out Best Softwares for Crypto Research.

There are specific types of crypto coins which when used will reduce the harmful effects of the environment by using less amount of energy.

10 Most Sustainable and Environment Friendly Cryptocurrencies 

Environment Friendly Cryptocurrencies

The natural balance of the environment is harmed by the cryptocurrencies which is why you, just like other investors, should switch to more sustainable and environment friendly cryptocurrencies.

There are lots of them out there but not all of them use the same amount of energy or the same type of models that are resource intensive.

Few of them are actively focused to make things greener while producing crypto blocks and verifying transactions.

Here is the list of some of the best and most popular, sustainable and environment friendly crypto coins that you should look for.

1. SolarCoin (SLR) – Innovative Solar technology

This decentralized and independent coin can be used on a global scale.

You can trade them or sell them just like any other crypto coins and at the same time help to incentivize the environmental activity in the world with the use of solar energy that is produced verifiably.

  • The working process:

The approach of SolarCoin is quite novel. Each coin needs only one Megawatt-hour of energy to create it. This is done by an innovative solar technology.

Users need to upload documentation to use this network with regards to their energy generation.

Its prospects are good since the Internet of Things will streamline the process one day with the solar arrays updated automatically.

2. BitGreen (BITG) – Proof of Stake Algorithm

Coming to existence in 2017, BitGreen is the best possible answer to the environmental concerns of Bitcoin.

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This is quite a good alternative to PoW consensus of cryptocurrency and is energy efficient.

This initiative driven by the community incentivizes environmental-friendly activities. BITG can be earned in different ways such as staking or running a master node.

  • The working process:

This coin works basically on the Proof of Stake algorithm and therefore uses less energy during the process.

Their proprietary protocol consists of deterministic master nodes. You can spend it to buy goods and services through its partners or trade them on ProBit, STEX, Mercatox, and Crex24 exchanges.

3. Cardano (ADA) – First Peer Reviewed Blockchain

Cardano is considered to be the leader of peer reviewed blockchains. Though the primary function of it is that of a digital currency, you can also use Cardano as DApps, digital contracts, and others.

It is also very fast and can handle more than 1000 transactions per second as compared to only 7 of Bitcoin and still consume less amount of energy in the process.

This is a platform where the users can hold their native coins within the network and in turn get rewards for doing so.

In addition to that, this digital asset is adopted in the Decentralized Finance or DeFi space.

The primary reason behind this is its ability to build smart contracts within its network.

This is very good news because these smart contracts allow the developers to build different Decentralized Applications as well as other new tokens.

  • The working process:

This energy efficient coin makes the best use of the Proof of Stake consensus system. This means that you will need to buy the coin in order to join and participate in the network.

This saves a lot of energy in the process and needs to use only 6 GW-hour of power. Since it comes with fewer bloats, it is quite scalable and can meet the demands for it more comprehensively as compared to Ethereum.

However, the speed of the process or its efficiency is not compromised for it.

4. Stellar (XLM) – Supports Cross Border and Cross Asset Transactions

A fork of Ripple, Stellar was launched in 2014 with the primary objective to bridge the gap between digital currencies and conventional financial institutions.

There is no charge to use this network. Any institution or individual can use it which is considered to be a very strong competitor to PayPal.

This is a much easier, faster, and cost-effective alternative and supports cross-border and cross-asset transactions.

You can exchange USD, Bitcoin, Yen, Pesos, and almost any traditional or cryptocurrency using the Stellar network.

You can buy, sell, or trade Lumens on most of the crypto exchanges such as Binance, Coinbase, Bitfinex, Upbit, Kraken, Bittrex, and Huobi.

  • The working process:

Lumen is the token of this network and is used to facilitate trading on the distributed ledger based on blockchain.

The cost of transaction is quite low and can be done fast with greater efficiency and lower carbon footprint.

You can also create tokens and use them for making an investment in renewable energy and other more sustainable initiatives.

It follows an open-source consensus protocol which involves authenticating transactions made through a set of reliable nodes.

It does not have to go through the whole network as a PoS or PoW algorithm which makes the authentication and transaction process shorter and faster.

The cost and energy consumption are both low due to this algorithm called the Federated Byzantine Agreement.

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5. Ripple (XRP) – More Secure and Efficient

This private platform started its journey in 2012 and comes with some unique features such as a voting system.

This can be accessed by all validators all over the world. XRP is a pre-mined token that can be used to transfer assets with this network that is highly efficient and can handle over 1500 transactions in a second.

  • The working process:

The Ripple Protocol Consensus Algorithm or RPCA used by this network is quite unique which makes this platform one of the most secure and efficient platforms to use.

This is because this consensus algorithm will need at least 80% approval from the validators of the network all over the globe to facilitate a particular transaction and add it to the XRP ledger.

This means that you can exchange your money with ease and at a low cost very quickly.

6. Nano (NANO) – Uses Block Lattice Technology

If you are looking for a free and fast alternative to Bitcoin that also uses less amount of energy then Nano is the right choice.

Launched in 2015, this is known to have a much smaller carbon footprint. It is also quite scalable and does not depend on mining making it lightweight.

This specific network does not use mining but focuses on those processes that consume very little energy during the operation.

This ensures that the users can make low cost and nearly instant transactions on this platform.

  • The working process:

The working process depends on a more energy efficient Block Lattice Technology. This is much more efficient than traditional blockchain technology in creating an account chain for every user on the network.

However, it still relies on the Proof of Work mechanism. In addition to that, this platform also uses the Open Representative Voting system. This allows all holders to vote for a selected representative by them.

The representative then confirms transaction blocks to make them more secure. The users’ accounts are updated asynchronously instead of needing to go through the full linear blockchain.

This reduces competition and makes it faster enabling it to handle more than 125 transactions per second.

7. IOTA (MIOTA) – Stable and More Financially Sustainable

The IOTA cryptocurrency is not as volatile as other tokens when it comes to price. The best part of it is that it is more stable and financially sustainable in the market.

The network consumes low energy overall. According to a study, the Energy Consumption per Transaction or ECPT of IOTA is just 0.11 watt-hours.

It is pretty low as compared with VISA and MasterCard and other major financial establishments.

Making Atomic Transaction its norm and with such low energy use, IOTA reduces the size of transaction from 1.7 kb to lower than 100 bytes.

  • The working process:

This is very sustainable and energy efficient because it uses Fast Probabilistic Consensus. This is dependent only on Proof of Work but in part.

This helps it to reduce the amount of greenhouse gas emissions significantly making it one of the most popular and reliable sustainable and environment friendly cryptocurrencies.

8. EOSIO (EOS) – Easy to Set Up and Use

EOSIO is one of the most popular and favored public blockchain especially by the developers.

The primary reason behind such popularity is that it is very easy to set up. It is also very simple to write applications in different programming languages.

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It will not cost you anything to use this network which is also considered to be extremely scalable.

  • The working process:

EOSIO uses the Proof of Stake or PoS platform to function. Pre-mined EOS tokens are used here with which you can trade on any standard crypto exchanges including and not limited to Binance, Coinbase, Kraken and more.

9. TRON (TRX) – Share Apps Directly on Blockchain

TRON is a public blockchain and a non-profit organization based in Singapore that supports almost all programming languages.

The good thing about this P2P platform is that it allows the creators to directly share apps on the blockchain. This is the most significant aspect that makes the entire process more sustainable and energy efficient.

Tronix is the native TRON currency which is a pre-mined token that you can use for trading on different crypto exchanges such as Binance and others.

It has a very bright future with its plan to use it for creating decentralized gaming platforms.

  • The working process:

The network typically uses a decentralized governance system which is actually a double tier model.

It consists of the Super Representatives and Super Representative Partners.

The noteworthy feature of this model is that it offers the opportunity to each account to become a Super representative and also have the right to vote for other Super Representatives.

10. Burstcoin (BURST) – Good to Create Non-Fungible Tokens

Burstcoin is arguably one of the most environment friendly networks and also one of the first blockchains that used smart contracts that are Turing-complete.

This is a specific feature that allows Creating NFTs or Non-Fungible Tokens. You can use them in on-chain games.

The most significant aspect of Burstcoin that also makes it one of the most favored among the users is that it rewards the miners when they use storage space during the mining process.

This network is driven by the volunteers and it will allow you to trade its native coins BURST on different crypto exchanges such as STEX, Bittrex and others.

  • The working process:

Burstcoin is one of the most stable and sustainable cryptocurrencies that uses the Proof of Capacity mechanism instead of Proof of Work system.

This efficient system uses much less energy, even less than a computer with a 1 TB hard drive that you use for mining purposes.

In short, it is much more efficient than GPU mining or ASIC mining working on a PoW pr Proof of Work algorithm.

Conclusion

Needless to say, this is not an exhaustive list of the most sustainable and environment friendly cryptocurrencies with over 4,500 coins out there.

However, based on the exponential growth rate, these are some of the best ones to look out for in 2021.