Can Crypto Be Sustainable?Although there is a lot of optimism surrounding cryptocurrencies, critics highlight a significant drawback: its adverse impact on the environment. Crypto, specifically mining, negatively affects the environment because it requires a sheer amount of processing power to do. And while mining is only one way to verify cryptocurrency transactions and create new coins in the blockchain, it is the approach employed by the biggest cryptocurrencies.
A crypto miner typically uses powerful computers that contend with each other to verify transactions in exchange for currency; a huge amount of energy to run sophisticated algorithms; and sources of that energy that are often not renewable, like fossil and coal. In 2021, an energy tracker by Cambridge University showed that Bitcoin mining uses more energy each year than small countries, such as Sweden, Argentina, and Malaysia.
Aside from this, mining equipment also gets outdated quickly, so cryptocurrency mining also produces a sizable volume of electronic waste. This is particularly accurate for Application-Specific Integrated Circuit mining, which involves modified devices designed for mining specific cryptocurrencies, often the biggest and most popular ones.
Green CryptocurrenciesAs the integration of crypto into cultures and economies around the world expands, the answer to the question "can crypto be sustainable?" becomes increasingly urgent. Right now, there are a few projects and attempts in achieving a greener blockchain. And new methods that lessen the environmental impact of this technology are the foundation of emerging green cryptocurrencies.
In pursuit of solutions for increased sustainability, many of these elements may also be applied to current cryptocurrencies. So the answer is a resounding yes! Crypto can be green, but for it to be 100% sustainable, strong support from the industry and all crypto bros is needed. Here are four green crypto projects, coins, and solutions that are currently gaining steam:
Algorand (ALGO)Algorand, a proof-of-stake blockchain that was only launched in late 2019, is similarly a relative newcomer to the market, but by the end of 2020, it was able to handle around a million transactions daily. Its value is derived from the fact that it facilitates smart contracts. A user's impact on the network is inversely correlated with their position in the network, so the blockchain is safe, flexible, and free of possible governance problems and forks. This also means that the Algorand system is energy efficient, compared with Ethereum and Bitcoin.
Stellar Lumens (XLM)The Stellar network, which is run by the non-profit Stellar Development Foundation, aims to close the gap between traditional financial and cryptocurrencies. The network's operating costs are covered by tax-deductible donations. It is more interested in maintaining a network that enables simple and affordable cross-border payments than in making quick money with significant increases in the price of Lumen.
Due to the fact that it makes cross-asset and cross-border transactions quicker, simpler, and more affordable, Stellar is gradually being recognized as a genuine PayPal competitor. The goal of SDF is to increase people's empowerment, market openness, and financial flexibility in order to maximize global economic potential.
Nano (NANO)In comparison to the majority of cryptocurrencies, Nano, launched in 2015, is quick and consumes a lot less energy. It’s also free! Since it doesn't depend on mining, it leaves minimal carbon footprint and is also lightweight and scalable.
It employs the block lattice solution. Although it continues to rely on a Proof of Work system, this energy-efficient technology creates an account-chain for each network user in addition to the blockchain. The platform also utilizes a Open Representative Voting mechanism, in which users choose a representative who will work to safely validate transactions.
Cardano (ADA)Cardano is vetted by scientists and academics as the first peer-reviewed blockchain. It has the capability to process 1,000 transactions per second as opposed to Bitcoin's seven transactions per second. Although its primary usage is as a virtual currency, it may also be applied to other transactions, such as digital contracts and DApps.
Because it employs the “proof of stake” consensus method, it is naturally more energy efficient than most cryptos. It has a lot of similarities with Ethereum, minus the bloat. This makes it possible for the coin to grow up without sacrificing speed or efficiency in order to satisfy rising demand. Discover RadioShack Swap here