In a sustainable economy, there are more and more cryptocurrencies that support an environment worth living in.They use the proof-of-stake consensus algorithm and go even further. Discover our top 5 eco-friendly cryptocurrencies in this article.
1. Stellar (XLM)
Stellar is an open-source, decentralized financial network designed to easily transfer and receive various currencies. Their goal is to form a large decentralized payment platform for global payments for all types of assets. You can easily receive or trade US dollars, euros, Bitcoin or other cryptocurrencies. You don’t have to wait for international payments like with conventional banks, because they are carried out immediately. Sustainability is a key component for Stellar. The Stellar Consensus Protocol (SCP) is an energy-efficient consensus mechanism that allows financial systems to collaborate in a sustainable manner. They have even developed a framework to assess the electricity consumption and greenhouse gas emissions of blockchain protocols.
2. IOTA (MIOTA)
IOTA is a distributed ledger for easily exchanging data between different devices, between people and also between machines. They are targeting the so-called “Internet of Things” (IOT); a global network of interconnected devices that send and receive all types of data. IOTA uses “Tangle”, a synonym for the directed acyclic graph (DAG). Here the users validate the transactions instead of the validators. As a result, no mining takes place. This makes IOTA not only environmentally friendly, but also fast and cost-effective. IOTA is specifically designed to be energy efficient.
3. Ripple (XRP)
Ripple (XRP) is a blockchain platform for payments between different countries, banks and even currencies. Users can transfer money worldwide quickly and inexpensively. Ripple is therefore often referred to as the “cryptocurrency for banks” and is the first network tailored to the financial sector and operating in a decentralized manner. Ripple Labs, the company behind Ripple, has announced that it will switch to 100% renewable energy sources to reduce its impact on the environment. All XRP coins are already in circulation, so no one can mine to mint additional XRP coins. Furthermore, Ripple does not use the Proof of Work algorithm, but rather its own Ripple Protocol consensus algorithm. There is no mining here either, making Ripple an environmentally friendly coin.
4. Energy Web Token (EWT)
The name says it all: Energy Web Token is a protocol about energy consumption and a green economy. In 2017, Energy Web Token was launched with a specific goal: to offer environmentally friendly blockchain solutions for companies and individuals. Energy Web Token is supported by the Energy Web Foundation (EWF), a non-profit organization. The aim of the EWF is to promote the use of renewable energy sources. For example, users who mine Bitcoin using renewable energy will be rewarded for doing so. With an increasingly green economy, Energy Web has also covered other sectors such as automotive and DeFi. The Energy Web Foundation uses blockchain technology to create a transparent, secure and efficient energy network.
5. Cardano (ADA)
Cardano uses Proof-of-Stake, an energy-efficient consensus algorithm. But that’s not all, because the Cardano team is committed to sustainability. Not only is the blockchain the future, but environmental protection is also part of it. Sustainable investments contribute to a sustainable world and a sustainable economy. Cardano therefore focuses on the following: Fighting the climate crisis Promoting a just society Development of sustainable markets Cardano publishes an annual sustainability report to track this development. The future is blockchain, energy efficient and zero carbon emissions.
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