Most Energy Efficient Cryptocurrency
Over the past decade, cryptocurrencies have significantly impacted the global economy. They have provided an alternate means of making payments and put people in control of the monetary policies. However, one of the biggest rap put on cryptocurrencies is their carbon footprint. Therefore, carbon-sensitive investors always look for the most energy efficient cryptocurrency.
- Cryptocurrency is under the pump for having a large carbon footprint.
- Ethereum, the second largest cryptocurrency, has to change its consensus mechanism to proof-of-stake to lower its carbon emission footprint.
- As investors are searching for energy-efficient cryptocurrencies are the future of DeFi.
The carbon emission made by Bitcoin, the largest cryptocurrency, is 150 terawatt-hours per annum, that’s more than Argentina uses. Now that is huge.
Although not every cryptocurrency is a power hog, the entire crypto industry faces severe backlash from global carbon reduction groups. Therefore, the necessity for the most energy efficient cryptocurrency is at an all-time high.
Many crypto projects have already developed ways to reduce carbon footprint and are gaining popularity as awareness grows.
So, let us look at a few of these energy-efficient cryptocurrencies.
- C+Charge (CCHG)
Topping the list for the most energy-efficient cryptocurrency is C+Charge. It incentivizes electric vehicle owners by rewarding them with CCHG tokens by offering carbon credits.
Carbon credits are permits that offer holders the to offset their carbon footprint. Users can earn rewards by charging their EV (electric vehicle). Moreover, the project has developed a mobile app that helps drivers find the nearest charging station, waiting time and prices.
The team behind C+Charge has partnered with Flowcarbon to enhance its market footprint further.
IMPT is making good news in the eco-friendly crypto niche as it uses the Ethereum blockchain to develop carbon credits as NFT. IMPT achieves high energy efficiency by partnering with leading brands to lower their carbon footprint. So, $IMPT holders are rewarded with carbon rewards when they purchase these partner brands.
Since carbon credits are a practical way of offsetting CO2 emissions, thus IMPT has made a significant impact on the eco-friendly community.
The third spot goes to Ethereum on the most energy-efficient cryptocurrency list. It is the largest altcoin, as it is an intelligent contract-enabled blockchain. As Ethereum innovated dApps, thus paving the way for numerous high-growth sectors like NFTs, DeFi and the metaverse.
Since Ethereum has moved to a proof-of-stake consensus mechanism, thus it has significantly reduced its carbon footprint. A report suggests that the platform will now use 99.95% less energy.
With its sheer size, Ethereum‘s change to PoS has been a game changer in minimizing pressure on cryptocurrencies for consuming high energy levels.
Since Algorand works on PoS and intelligent contracts, thus it is a carbon-neutral cryptocurrency. Likewise, as a network, it does not rely on mining but is proving as a game changer by offering blockchain sustainability through a network that does not generate carbon emissions.
Additionally, the project team partnered with ClimateTrade, which supports organizations to stay energy-efficient and reduce carbon production.
As the name suggests, it is a highly eco-friendly cryptocurrency. The project rewards users who prefer carpooling, biking, and consuming sustainable products. Moreover, users can easily use BitGreen at multiple vendor sites.
Moreover, BitGreen has a PoS mechanism to reduce carbon emissions. In addition, it has a mobile app to assist users in trading coins and earning rewards by participating in green stuff. Bitcoin is facing a challenge from BitGreen as it aims to topple its dominance by staying viable and profitable.
- Power Ledger
The project started its journey from Ethereum but has switched to a new, less energy-intensive blockchain -Solana. The primary reason behind this move was to take advantage of Solana’s scalability.
The P2P Powerledger operating system follows the flexibility of services, trade energy and other environmental commodities to support a decentralized grid. Moreover, it uses proof-of-history and proof-of-work consensus mechanisms that are fast and energy-efficient.
Another highly energy-efficient cryptocurrency is SolarCoin. It is a practical process that is energy conservation in the real world. Each SolarCoin token is produced with each megawatt hour of solar power consumption. Therefore, investors, miners and supporters are incentivized to use solar power.
So, if you have a solar power generation facility, you can earn handsome money. Although it has a relatively low return, it is expected to make a good fortune over time.
Frequently Asked Questions
Which crypto is the most energy efficient?
The following cryptocurrencies are energy-efficient projects.
- C+Charge (CCHG)
- IMPT (IMPT)
What is the greenest cryptocurrency?
Many experts tip Polygon as one of the greenest cryptocurrencies in the blockchain sector. It has one of the best proof-of-stake consensus mechanisms in the crypto industry.
Is Solana the greenest crypto?
Solana is one of the greenest, most eco-friendly and energy-efficient cryptocurrencies, as it offers a PoS consensus mechanism and promotes eco-friendly projects.
Are eco-friendly tokens good for investment?
After severe criticism of cryptocurrency’s carbon footprint, investors have started to look for more environmentally-friendly projects; thus, energy-efficient projects are the future of the crypto investment circle.
With severe backlash on the cryptocurrency market due to its high carbon emission footprint, many existing new projects have taken serious note of it and started working to reduce it.
One of the most significant achievements in this regard was of Ethereum network’s shift to a proof-of-stake mechanism, and the green-loving community warmly welcomes this. Likewise, many new projects are developing rewarding techniques promoting low carbon emissions.
Since the future lies with such projects which are environment friendly, thus investors also hunt for the most energy efficient cryptocurrency. We have mentioned that Ethereum, Solana, C+Charge and IMPT are among the best energy-efficient projects to invest in.
Since these projects are focused on reducing the carbon footprint of the crypto space, thus become a good investment option as well.
There you have it, and we hope you enjoyed reading our article; please leave your thoughts in the comment section, as we love hearing from you.