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what is Green Crypto?

what is Green Crypto?

since cryptocurrency mining is not environmentally friendly, cleaner alternatives are being launched. 
January 15, 2022
3 min read
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What is Green Crypto?

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ninety-six million tons. that’s the amount of carbon dioxide generated every year by Bitcoin mining. Ethereum mining generates another 47 million tonnes of CO2 each year. so naturally, the environmental costs are devastating. as climate change conversations heat, finding solutions to the crypto climate problem has become necessary.  

what if there was a ‘greener’ alternative to crypto? that’s what green crypto or ‘grypto’ is all about. backed by renewable energy, these crypto coins are intended to give back to the earth. 

here, proof-of-work, or using high-end computers to verify blockchain transactions that use high coal-generated electricity, is replaced by other tamper-proof verification methods. 

what are some of the green coins?

eco-friendly cryptocurrencies have become popular recently. here, Algorand, Cardano, iCW Tokens, SolarCoin, Nano, Radix, and IOTA are alternatives to Bitcoin and Ethereum. 

SolarCoin is among the most innovative and creates one Solarcoin for every megawatt-hour generated from solar technology. users need to upload documentation to prove energy generation. 

in 2021, Algorand announced that its blockchain is fully carbon neutral. unlike Bitcoin, which uses a proof-of-work mechanism, this entity uses a proof-of-stake blockchain. this ‘Proof-of-Stake’ method selects random miners to validate transactions based on tokens purchased. the process is quicker, so consumes less energy. 

similarly, Cardano also uses the proof-of-stake mechanism where participants need to buy tokens to join the network. the company claims this cryptocurrency is 1.6 million times more energy-efficient than Bitcoin. Cardano uses six gigawatt-hours of energy annually compared to 115.85 terawatt-hours bitcoin is estimated to use.

processes to verify transactions like Tempo used by Radix will also help make the green turn. under Tempo, logical clocks under a ledger keep track of the transactions. the transaction proof is passed through all the nodes and any wrongdoing is immediately detected. 

can crypto go fully green?

climate risks are at our doorsteps and business leaders like Elon Musk, in the past, have cited environmental risks to limit crypto usage. 

with 200-odd crypto entities joining with the Rocky Mountain Institute to create a Crypto Climate Accord, baby steps are being taken to negate climate risks. this group wants to switch all blockchain technology to renewable energy sources by 2025 and plans to use energy tracking tools such as so-called green hashtags. the crypto green revolution may have finally arrived.