The Most Eco-Friendly Cryptocurrencies And How To Cut Your Crypto Carbon Footprintbit2main
New study can today reveal the most environmentally friendly cryptocurrencies according to Co2 emissions and electricity consumption and tips on how to cut your crypto carbon footprint.
The experts at Traders of Crypto carried out an analysis that looked at the annual electricity consumption, energy use per transaction and Co2 emissions of cryptocurrencies to reveal the most sustainable coins. They then discovered which of these eco coins performed best in 2021 in terms of market capitalization.
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The Most Eco-Friendly Cryptocurrencies
The most eco-friendly coin according to electricity consumption is Cardano, which only uses 48,851 kilowatt-hours per year. Whilst crypto giants, Bitcoin and Ethereum use enough electricity to power a small country through their proof-of-work protocol, Cardano uses a proof-of-stake mechanism, making mining less competitive and more energy efficient.
The Top 10 Coins With The Lowest Co2 Emissions
Taking the top spot for the cryptocurrency with the lowest Co2 emissions is Fantom, with only 7 tonnes produced annually. Thanks to its super-fast transaction times and energy-efficient software, Fantom’s carbon emissions are negligible compared to crypto giant Bitcoin’s whopping 114 megatonnes annually.
- The highest valued eco-friendly crypto is Cardano. Cardano functions mainly as a digital currency through its token ADA and had a market cap of £29,013,619,221 in 2021. The Cardano blockchain, like many other eco-friendly cryptocurrencies, operates on a proof-of-stake mechanism, a greener alternative to the power-hungry proof-of-work protocols used by Bitcoin and Ethereum.
- Polkadot ranked second among the highest valued eco coins, with a market cap of $29,845,818,892. RIPPLE came in third, recording a market cap of $25,006,533,342 last year.
- Algorand was found to have the second lowest energy consumption, only using 70,237 kilowatt-hours per year, while Avalanche takes third place.
- IOTA is the most energy-efficient cryptocurrency per transaction thanks to its innovative distributed ledger technology known as Tangle. IOTA is followed by MetaHash and Tezos is second and third.
Tips To Cut Your Crypto Carbon Footprint
The team at Traders of Crypto has provided a few tips to cut your crypto carbon footprint:
- Invest in blockchain companies that focus on clean energy goals. The blockchain company Efforce, for example, invests in energy-efficiency projects, tokenises the energy saved as the cryptocurrency WOZX and distributes a share of these tokens to investors.
- Invest in cryptocurrencies that use proof-of-stake protocols. Proof-of-stake uses far less computing power than other protocols as there are fewer participants in the network, meaning less energy is used and less e-waste is generated to validate transactions.
- You can also cut their carbon footprint by putting their money into carbon offset tokens. Connecting carbon offsetting to cryptocurrency tokens means you can buy carbon credits from companies in order to fund carbon recapture projects. These offsets for cryptocurrencies could drive up demand and prices, meaning more money for investors and carbon reduction initiatives.