As an investment opportunity and a faster and safer payment method, cryptocurrency has grown significantly over the past decade. Earlier this year, however, Elon Musk prevented Bitcoin’s astronomical rise when Tesla’s CEO said the currency had environmentally damaging properties.
This has resulted in a large number of new cryptocurrencies entering the market, many of which place sustainability and environmental friendliness at the heart of their business strategies. If this is your first time learning crypto, you might want to start using the greenest cryptocurrency on the market right away.
Below are the 5 cryptocurrencies that top the list:
At the top of Musk’s announcement is Nano, which is clearly being marketed as an environmentally friendly cryptocurrency. According to its creator, the currency is not used in its production process, either mining, minting or printing, which makes it as energy efficient as possible. More importantly, all transactions with Nano can be processed by a standard desktop computer and the process can be completed without any hardware (or software) failing. This makes it a more environmentally friendly alternative to Bitcoin.
The blockchain technology that Algorand supports is based on the concept of Proof of Stake (PoS) rather than supporting the proof of work of Bitcoin. This means that solving complex math problems and verifying transactions doesn’t require a lot of computing power, just a separate amount of currency as security. More importantly, Algorand has also partnered with ClimateTrade to set ambitious targets for negative currency issues.
Following Musk’s blockbuster on Bitcoin, Cardano was listed as one of the more sustainable cryptocurrencies he was considering accepting for Tesla payments. This is mainly because the currency is secured and not mined, which means it uses much less electricity than its competitors. With one measure, it can be 37,500 times more efficient than the market leader! The currency’s founder claims that the entire network that Cardano supports uses only 6 GWh of electricity, making it an attractive option for environmentally conscious consumers and investors.
If you think Cardano’s relative efficiency is impressive alongside Bitcoin, wait to hear what Elrond said. According to its founder, the technology behind Elrond is 6.24 million times more efficient than the technology behind Bitcoin. Despite these impressive statistics, it is still capable of processing an incredible 15,000 transactions per second. This efficiency and computing power make Elrond a currency created for the current climate – but it won’t cause climate change.
CHIA is one of the newest kids on the block. It wasn’t released until the beginning of this year and hit the market in February 2021. It was invented by Bram Cohen, who is behind the very successful torrent client BitTorrent. Although it is still in its infancy, CHIA is breaking completely new ground. Instead of relying on PoS or PoW, CHIA uses Proof of Space and Time (PoST), which Cohen claims is more secure and decentralized than any of its competitors. While it is still a very young currency, the signs so far are encouraging.