In an attempt to repair some of the reputational damage done by Bitcoin’s massive energy use, crypto projects have become increasingly focused on sustainability.
Sustainability efforts include employing eco-friendly technologies to lower cryptos’ energy requirements, enabling cryptos to reduce (or remove) their carbon footprint.
Some investors are switching to greener options, and one reason is that they are choosing a more efficient model—proof-of-stake—to validate transactions.
Take an in-depth look at the most sustainable cryptocurrency projects on the market, dive into how they help positively affect the environment and explore some of the reasons why sustainable cryptos are so important.
IMPT (IMPT)
IMPT is a blockchain-based carbon credit ecosystem that streamlines the process of offsetting carbon emissions by partnering with over 10,000 well-known retail brands.If you want to understand why IMPT is the most sustainable cryptocurrency, it’s important to know what carbon credits are.
Carbon credits are contracts that allow people or companies to pollute. One carbon credit equates to one ton of carbon dioxide. Moreover, IMPT uses the Ethereum blockchain, which is now one of the most energy-efficient blockchains after the Merge, to provide a platform where individuals and companies can buy, sell, earn and trade carbon credits.
Algorand (ALGO)
Algorand, a blockchain that operates on Proof-of-Stake (PoS), smart contracts and zero carbon emissions, is one of several cryptocurrencies competing with Ethereum in terms of value and currency.
ALGO aims to help cryptocurrency investors by allowing them to easily and affordably exchange their coins for other currencies, with minimal fees (0.5%). This feature makes the trading pair ALGO USDT one of the most eco-friendly cryptocurrencies to invest in right now.
As a network, Algorand does not rely on mining and aims to be a game-changer in terms of blockchain sustainability by creating a network that generates no carbon emissions. Some people believe that ALGO price is too high for it to become a mainstream cryptocurrency, but it is the most sustainable.
Tron (TRX)
TRON is a non-profit organization based in Singapore. It facilitates the development and distribution of applications on the blockchain, making it more energy efficient. The Tron network is compatible with the Ethereum Virtual Machine, which allows it to run smart contracts.
TRX is the native token of the TRON blockchain ecosystem. It is primarily used for staking and interacting with dApps in the network. Also, its trading pair TRX USDT, provides a good investment opportunity for cryptocurrency traders.
Chia (XCH)
Chia is a blockchain network that was designed to make an environmental impact through its use of drastically reduced energy. This is due to the network’s unique consensus protocol, Proof-of-Space-and-Time.
The Chia network rewards users who store data by releasing new tokens into their accounts, called XCH. These tokens were created in response to the excessive energy use involved in bitcoin mining. XCH can be downloaded on Mainnet at chia.net.
Stellar (XLM)
Stellar is a decentralized payments network that aims to facilitate cross-border transactions quickly and cheaply. Stellar operates on the Stellar Consensus Protocol, which relies on ‘validating nodes’ across the globe to approve transactions.
Stellar is a nonprofit organization that aims to create an open-source protocol for exchanging money. The organization does not charge institutions or individuals to use its network, and it is increasingly seen as a serious competitor to PayPal.
Ripple (XRP)
Ripple is an open-source, permissionless and decentralized blockchain-based payment network. The company describes itself as a platform that provides financial institutions with an alternative currency called XRP. The company claims that its network can settle transactions in three to five seconds.
Ripple’s co-founders are active members of the Crypto Climate Accord and WEF’s Crypto Impact and Sustainability Initiative. The blockchain network aims to enable sustainable crypto solutions and power dynamic markets.
Cardano (ADA)
Cardano is an eco-friendly cryptocurrency that was created to allow people to trade goods and services with each other without the need for a middleman. Instead of relying on an algorithm designed by programmers, Cardano relies on an open-source community that can propose improvements to its system.
Cardano is one of the earliest blockchains to use the Proof of Stake consensus mechanism, with its developers calling their approach Ouroboros. As with other PoS systems, Cardano’s energy expenditure is low compared to that of proof-of-work blockchains.
SolarCoin (SLR)
SolarCoin, another sustainable cryptocurrency, has been around since 2014. It aims to incentivize market participants to transition to solar power by distributing rewards to those who complete solar installations.
Ultimately, SolarCoin’s team hopes that their cryptocurrency’s value will exceed the cost of solar energy so that it becomes free. The team distributes one SolarCoin per megawatt hour of verified electricity production, providing a clear incentive for people to switch to solar power.
Wrapping Up
This guide has provided a detailed overview of the most sustainable cryptocurrency projects on the market, highlighting how they reduce their electricity requirements and make a positive impact on the environment.
Investors can reduce their carbon footprint by choosing eco-friendly cryptocurrencies. As more and more cryptocurrencies are created, investors should investigate all options in order to protect the environment while enjoying the financial benefits of cryptocurrency trading.
TRX and USDT are two of the most eco-friendly cryptocurrencies. This is because they are both used to make transactions and do not require mining. TRX was built on a blockchain network that uses proof-of-stake. This means that the platform’s users can verify transactions without the need for computers and related hardware.
