[ad_1]
NEW DELHI: The drive to reduce the carbon footprint in the crypto industry has currently intensified. This is even more evident after Elon Musk‘s unacceptance of Bitcoin for purchasing Tesla cars.
Initiatives such as the Crypto Climate Accord (CCA) led by private players have now been established for decarbonising the cryptocurrency and blockchain industry by 2040. More than 45 crypto finance companies have already committed to the CCA.
You may wonder, though, how the mining of cryptocurrency causes pollution. High-powered computers used to mine cryptocurrencies, solving brainstorming algorithms consume colossal amounts of power. The electricity generated by non-renewable resources worsens the problem.
However, the crypto market is responsive to this issue. And now, there are cryptocurrencies that have started to find ways to reduce the power consumption.
Let’s walk you through five such eco-friendly, but lesser known cryptocurrencies:
* IOTA (MIOTA): This uses, arguably, the least power with 100000 IOTA transactions costing 11kWh compared to 741kWh for 1 Bitcoin. Currently priced at $1614 it is said to be highly scalable.
– It consumes an iota of power of 0.0011kWh for mining.
– It uses Tangle, an alternative form of technology that does not need miners.
– It is maintained by smaller devices.
* Cardano (ADA): It uses a proof of stake (PoS) model, Ouroboros.
– In the PoS model, users buy tokens for joining the network, conserving a large scale of energy.
– Being the first peer-reviewed cryptocurrency, Cardano constantly improves on pertinent issues, including security and ecological concerns.
– It consumes 0.5479k Wh with 1000 transactions per second compared to 5 TPS of BTC making it both an ecologically and economically greener choice. Among eco-friendly cryptos, Cardano has the largest market capital of $68 billion as of September 20.
* Chia: At the current price of around $216, Chia claims itself to be a greener substitute of Bitcoin.
It uses a unique ‘proof of pace and time consensus’ model that makes it less energy-intensive in these ways:
– The new consensus model depends on verifiable delay function (VDF), a slow function that is easy to use and slow to compute. They help in designing resource-efficient blockchains and less-power consuming mining farms.
– For mining on Chia’s blockchain one needs some unused space on hard drives to create plots.
– These plots then utilize energy-efficient resources of drive space over the subsequent years to participate in the consensus process that verifies new blocks of Chia blockchain.
– This consensus model ensures a lower power consumption of 0.023kWh.
* Nano: Nano is a greener option because of its Open Representative Voting (ORV) consensus mechanism, where users vote on each transaction.
– In the ORV mechanism, transactions are processed individually and asynchronously, so irreversible and full-settlement of transactions is achieved in less than one second. It replaces mining, with easier captcha puzzles, to earn the Nano tokens.
– Its block lattice ledger design allows only account owners to sign blocks into their account chains.
– It ranks 112th with a market capital of $655.5 million and is priced at $4.91 as of September 20.
* Solarcoin: It also uses the Proof-of-Stake model.
– This cryptocurrency is the most distinct and sustainable as it aims to promote solar energy production in the world by rewarding such people with solar coins currently priced at $0.05.
– The rewarded solar coins are sent to the person’s Ethereum-compatible digital wallet at the rate of 1 SolarCoin per 1 MWh of verified solar electricity production.
– These coins can be traded, saved and spent on cryptocurrency exchanges. Alternatively, claimants can continue to receive solar coins upto 30 years as solar energy is generated.
– Another cryptocurrency, BitGreen functions on the same principle.
Out of these, IOTA, Chia and Nano are recognized by the TRG data centre of Houston, in the US, as forerunners among eco-friendly cryptocurrencies.
(For the latest crypto news, investment tips and real-time price updates, follow our Cryptocurrency page.)
Initiatives such as the Crypto Climate Accord (CCA) led by private players have now been established for decarbonising the cryptocurrency and blockchain industry by 2040. More than 45 crypto finance companies have already committed to the CCA.
You may wonder, though, how the mining of cryptocurrency causes pollution. High-powered computers used to mine cryptocurrencies, solving brainstorming algorithms consume colossal amounts of power. The electricity generated by non-renewable resources worsens the problem.
However, the crypto market is responsive to this issue. And now, there are cryptocurrencies that have started to find ways to reduce the power consumption.
Let’s walk you through five such eco-friendly, but lesser known cryptocurrencies:
* IOTA (MIOTA): This uses, arguably, the least power with 100000 IOTA transactions costing 11kWh compared to 741kWh for 1 Bitcoin. Currently priced at $1614 it is said to be highly scalable.
– It consumes an iota of power of 0.0011kWh for mining.
– It uses Tangle, an alternative form of technology that does not need miners.
– It is maintained by smaller devices.
* Cardano (ADA): It uses a proof of stake (PoS) model, Ouroboros.
– In the PoS model, users buy tokens for joining the network, conserving a large scale of energy.
– Being the first peer-reviewed cryptocurrency, Cardano constantly improves on pertinent issues, including security and ecological concerns.
– It consumes 0.5479k Wh with 1000 transactions per second compared to 5 TPS of BTC making it both an ecologically and economically greener choice. Among eco-friendly cryptos, Cardano has the largest market capital of $68 billion as of September 20.
* Chia: At the current price of around $216, Chia claims itself to be a greener substitute of Bitcoin.
It uses a unique ‘proof of pace and time consensus’ model that makes it less energy-intensive in these ways:
– The new consensus model depends on verifiable delay function (VDF), a slow function that is easy to use and slow to compute. They help in designing resource-efficient blockchains and less-power consuming mining farms.
– For mining on Chia’s blockchain one needs some unused space on hard drives to create plots.
– These plots then utilize energy-efficient resources of drive space over the subsequent years to participate in the consensus process that verifies new blocks of Chia blockchain.
– This consensus model ensures a lower power consumption of 0.023kWh.
* Nano: Nano is a greener option because of its Open Representative Voting (ORV) consensus mechanism, where users vote on each transaction.
– In the ORV mechanism, transactions are processed individually and asynchronously, so irreversible and full-settlement of transactions is achieved in less than one second. It replaces mining, with easier captcha puzzles, to earn the Nano tokens.
– Its block lattice ledger design allows only account owners to sign blocks into their account chains.
– It ranks 112th with a market capital of $655.5 million and is priced at $4.91 as of September 20.
* Solarcoin: It also uses the Proof-of-Stake model.
– This cryptocurrency is the most distinct and sustainable as it aims to promote solar energy production in the world by rewarding such people with solar coins currently priced at $0.05.
– The rewarded solar coins are sent to the person’s Ethereum-compatible digital wallet at the rate of 1 SolarCoin per 1 MWh of verified solar electricity production.
– These coins can be traded, saved and spent on cryptocurrency exchanges. Alternatively, claimants can continue to receive solar coins upto 30 years as solar energy is generated.
– Another cryptocurrency, BitGreen functions on the same principle.
Out of these, IOTA, Chia and Nano are recognized by the TRG data centre of Houston, in the US, as forerunners among eco-friendly cryptocurrencies.
(For the latest crypto news, investment tips and real-time price updates, follow our Cryptocurrency page.)
[ad_2]
