Cryptocurrency is like the rising sun in the entire financial marketing scenario. It came into existence in 2008, with Bitcoin – the first-ever cryptocurrency, functioning solely on Blockchain. Ever since then, it had a tricky way upwards, until recently, when the entire concept of crypto is again being freshly discovered, and interestingly enough, with its prices rising constantly, crypto is going nowhere. Although our major focus will be on green cryptocurrencies, in this article we will also be discussing on –
- Blockchain Technology
- Cryptocurrency and the environment
- Better viable cryptocurrency options for a greener tomorrow
Blockchain technology can be referred to as the skeleton on which various crypto applications stand. When it comes to cryptocurrencies, a blockchain bears the responsibility of storing records in the form of digital data. In other words, a blockchain network acts as the digital ledger of a cryptocurrency. All the transactions and their subsequent data are safely updated in these ledgers in the form of small blocks. When several of these blocks are connected, we call it a blockchain. To understand cryptocurrencies and their behavior, having basic knowledge about blockchain technology is necessary.
Bitcoin has the highest value amongst all other cryptocurrencies. In recent years, it is rather on a crazy ride, with its value exceeding over $64,000 in April 2021. However, shortly after that, when Elon Musk decided to quit his deal with Bitcoin, its value began falling sharply. Now, the reason why Tesla dropped the idea of collaborating with Bitcoin is that Bitcoin mining and transactions take up huge energy to power their operations.
According to crypto analysts, Bitcoin sits right at the bottom when it comes to green, sustainable cryptocurrencies, using 707 kilowatts of energy per hour. Compared to Dogecoin, which uses only 0.12kWh, Bitcoin is contributing to the fast depletion of fossil fuels, specifically coal.
What is different in the case of green cryptocurrencies?
Green cryptocurrencies are a better shot at digital money, keeping sustainable development in mind. It is eco-friendly and is different from other options out there in the sense that these cryptocurrencies use a different method to generate new tokens. The traditional concept of proof of work through crypto mining is now changing and the hype is shifting to something called proof of space and time.
In this case, you no longer mine crypto-money but ‘farm’ them with the help of space present in your hard disk or computer memory. Going by the available space, the blockchain network of the green cryptocurrency will install software and convert them into plots, where you can farm your cryptocurrency.
The pros of green cryptocurrencies
Since Bitcoin has to be mined, a lot of complex mathematical calculations arise, the completion of which requires huge pockets of energy. On the contrary, green cryptocurrencies can be farmed just through available space in your hard drive, thus cutting down on electricity consumption.
The high ground revolving around mining is no more an issue, as farming is a practical option for many small-scale home miners now. You can even trade your choice of green cryptocurrency using online software like best bitcoin platform
A list of cryptocurrencies that are greener and more environment-friendly than Bitcoin
- Chia
- IOTA
- Cardano
- Nano
- Solarcoin
- Bitgreen
Are green cryptocurrencies a long-term solution?
It is debatable whether green cryptocurrencies are an eco-friendly option. While it is true that they limit electricity consumption, they also contribute a great deal towards the generation of e-waste. Numerous TBs of hard disks are already in use to keep these cryptocurrencies running. While in comparison to Bitcoin, green crypto-money is a better option, but it is difficult to make a final judgment as the entire mining system is complex in its own way.
Conclusion
Other small-time cryptocurrencies may seem to have a negligible carbon footprint, but that is only because of the lesser number of transactions, as of now. Any cryptocurrency mined using the proof of work system, will incur large bouts of electricity. Now imagine the energy consumption caused by 5,000 such big and small cryptocurrencies that circulate in the market presently!
