What is green crypto currency? Its value plummeted when Tesla CEO ELON Musk said the electric carmaker would no longer accept bitcoin as payment for vehicles. Musk said he was concerned about the impact of crypto currencies on the environment. But are there environmentally friendly alternatives?
Why is crypto currency harmful to the environment?
This is the level of computer processing power required to mine digital currencies. That worries environmentalists.
The extraction process uses the following:
- High-powered computers compete to verify transactions in exchange for coins.
- Large amounts of power-to-power complex algorithms
- Non-renewable energy sources such as coal are among the dirtiest fossil fuels.
What is the reason why Bit coin is bad for the environment?
According to the Bit coin Power Consumption Index run by the University of Cambridge Financial Center, Bit coin mining consumes more energy annually than Malaysia or Sweden.
According to propaganda campaigns, the impact of this problem is exacerbated when most of the extraction is in China, which relies heavily on coal power.
Bit coin has undergone sudden changes in the last 14 months. Its price increased during the pandemic. It had gone from around $6,500 in March 2020 to $64,000 and suddenly lost half of its value.
Falling Again after China's Carbon Footprint Crackdown If the price of Bit coin rises again, so will the amount of fossil fuel involve in the process.
Earlier this year, Tesla announced it had bought $1.5 billion (£1.1 billion) worth of bit coins. Elon Musk has since confirmed that it will not sell its investment in the world's largest digital currency. And instead, it waits until a more stable method of mining is found.
Six eco-friendly crypto currencies
Environmentalists and Musk agree that bitcoin mining uses an alarming amount of fossil fuels. However, there are alternative, eco-friendly crypto currencies that do less harm to the planet. This will solve the concerns about digital currencies and the environment.
Smaller currencies usually appear to have a lower carbon footprint, but this may simply be because fewer transactions are made. However, there are digital assets that are more energy efficient, meaning their environmental impact is reduced.
According to research by TRG Datacenters, these crypto currencies are the most energy efficient:
- IOTA (0.00011) kWh
- (0.0079) XRP kWh
- Chia (0.023) kilowatt hours
Here we introduce six digital currencies that are more environmentally friendly than Bitcoin:
TRG Datacenters says Chia is an example of a sustainable digital currency designed to consume less energy.
The "cultivation" process used by Chia uses hard drives, a concept that serves as proof-of-space instead of the method used by Bit coin, which relies on computer computers.
Important points about Chia:
Chia coins can be farmed on laptop or desktop hard drives, and unused space can be used for "shards".
Once the software is fully downloaded, your computer will do the mapping for you and start growing the chia. This approach makes chia cultivation easier for home users as it does not rely on large amounts of electricity like mined crypto currencies.
However, some critics still claim that Chia is not as environmentally friendly as it claims, as it has led to a significant increase in demand for computer hardware and increased levels of e-waste.
IOTA uses the "Tangle", an alternative form of technology that does not require miners.
It is maintained by smaller devices and therefore requires less energy.
Unlike digital currencies like Bit coin, CAEDANO uses a proof-of-stake system called Ouroboros. This requires users to purchase tokens to join the network and save energy.
Important points about CARDANO
CARDANO was developed by Charles Hoskinson, one of the founders of Ethereum, the second largest digital currency after Bit coin. This digital currency can perform 1000 transactions per second, while 7 transactions are performed per second with Bit coin.
Ouroboros is the first peer-reviewed block chain-based protocol, which CARADANO claims can meet global needs without compromising security or environmental sustainability.
CARDANO is arguably the most well-known green Crypto currency. And at the time of writing this article, it is considered the fifth largest digital currency.
Based on analysis by TRG Datacenters, its energy consumption is 0.5479 kWh.
TRG data centers have also highlighted NANO-currency, even though it is not included in the energy consumption list.
Important things about NANO
Digital currencies such as Bit coin run on proof-of-work, trying to reduce the waste caused by cryptographic transactions.
It uses consensus protocol to increase productivity and reduce energy consumption.
In addition to being environmentally friendly, Nano transfers are instant and transactions are free.
It is a global, independent and stable currency designed to expand solar energy production by receiving rewards in the form of coins.
Generators receive one coin for each megawatt hour of energy produced.
Green Crypto currency
This eco-friendly digital currency was launched as a green Crypto currency alternative to Bit coin.
Like Solar Coin, by incentivizing positive environmental behaviors and rewarding users for actions such as drinking sustainable coffee, a voluntary collection of cars is achieved that they can use in exchanges or spend with bit green Crypto currency partners.
The prospect of environmentally friendly digital currencies
As concerns grow about the energy levels used in crypto currency mining, new initiatives to improve environmental compatibility are constantly emerging.
These include increased use of renewable energy, more energy efficient protocols and offsetting carbon footprints.
According to TRG Datacenters, big changes are expected in the procedure of existing currencies. In the future, we will see the creation of new digital currencies that are more sustainable and compatible with the environment.
The companies present Nano, Iota and Chia as pioneers of eco-friendly digital currencies with a commitment to reduce the environmental impact of transactions. More than 45 companies and individuals in the crypto, finance, energy and technology sectors have signed the Crypto Climate Accord, which seeks to decarbonize the industry and zero carbon emissions from electricity consumption associated with digital currencies by 2030.
How bad is the Doge coin for the environment?
Texas-based TRG Datacenters analyzed a range of crypto currencies and ranked them based on the amount of energy required to complete each transaction.
Doge coin consumes 0.12 kilowatt hours (kWh) of energy per transaction, far ahead of Bit coin in the table. Bit coin uses 707 kWh, which is at the bottom of the table.
At the time of writing, ELON Musk's preferred currency was Doge coin, which he promoted in social media posts and TV shows.
According to critics, it is difficult to assess its real environmental effects due to the complexity of its extraction system.
Which "green" crypto currency will Tesla add to its payments?
Digital currencies are a good idea in many ways. And we believe that the future belongs to them, but not at the cost of the environment.
Tesla will not be selling our bit coins and we will use our transactions as soon as the mining processes are more energy efficient. We are currently looking for crypto currencies that consume less than 1% of Bit coin's energy to perform their transactions.
This tweet left the crypto community confused and excited as to which crypto currency Tesla is going to replace Bit coin (BTC) with.
One influencer, The Cryptic Poet, told his 45,000 Twitter followers that he predicts Tesla will use either Ether (ETH) or Ripple (XRP). However, a user named Massimo pointed out that if Tesla uses Ethereum, its proof-of-work is just like Bit coin, so it's better to stick with Bit coin.
According to TRG's data center analysis, Bit coin's energy consumption per transaction averages around 700 kilowatt hours (KWh). Although its annual energy consumption is about the same as that of the Netherlands, according to Digiconomist, its annual consumption is closer to that of Singapore. And the reason is probably because of the use of cheap renewable energy for mining. (Note: Estimating the power consumption of each transaction is controversial. Therefore, it is used here as an estimated comparative tool).
Ethereum and Proof of Stake
Ethereum energy consumption per transaction is approximately 62.56 kWh. Currently, the Ethereum network uses the same energy-inefficient consensus method (Proof of Work or POW) as Bit coin. Digicon mist estimates that the Ethereum network's annual carbon footprint is the size of Sudan.
However, these issues are supposed to be resolved with the future migration of the network to ETH 2.0, which includes Proof of Stake or POS. According to Nimbus, Proof of Stake is 99% more efficient than Proof of Work (POW).
Earlier this month, Rocket Pool contributor Joe ClAPIS demonstrated this by running 10 Ethereum 2.0 validators for 10 hours in his front yard using a power bank and hard drive connected to a Raspberry Pi. Proved.
We must say that all proof-of-stake chains are undoubtedly 99% more efficient than Bit coin. So, Tesla will choose one of these options, from Solana to CARDANO, and things like that.
Tesla may temporarily choose Ripple (XRP) (although this also depends on the filing of the US Securities and Exchange Commission (SEC). Because all XRP tokens are already mined, and according to TRG data centers, XRP transactions consume a small amount of energy, i.e. only 0. They consume 0079 kilowatt hours of energy. Ripple regularly publishes and promotes posts that consume less energy compared to proof-of-work block chains.
Stellar Lumen (XLM) also follows the XRP model as all its tokens are scratch-minded. The network also uses the Stellar Consensus Protocol or SCP to ensure transaction validation, which is said to require less energy than POW and POS models.
Another option can be ALGORAND digital currency. Because not only does it work on proof-of-stake, but the team announced that its block chain became completely carbon-free on April 22nd. Elgorand is also working with Spanish technology company Climate Trade, which is building a CO2 market. This Spanish company allows companies to monitor their emissions. These companies are working together to implement a sustainable oracle and create a carbon negative network.
The creator of Bit Torrent competes with Bit coin with the green Crypto currency
Chia crypto currency is the latest innovation of the torrent creator, whose mechanism works not on the basis of electricity consumption, but on the free space of the computer's hard disk.
Bram Cohen, the programmer who launched the Bit Torrent file sharing protocol in 2001, is developing his reputation from a completely different path: solving Bit coin's power shortage problem. Cohen's latest invention is a crypto currency called Chia, which is introduced as the "green money of the digital world" and has a completely different face from Bit coin.
Unlike Bit coin, which requires a lot of electricity due to the use of the proof-of-work consensus mechanism, Chia crypto currency uses the proof-of-space mechanism; That is, its extraction process uses the free space of the hard disk. In an interview with Breaker magazine, Cohen stated that hard disk space is readily and widely available and often goes unused. He said:
The idea is that you use these storage capacity resources. Nowadays, people have a huge amount of free storage space on their laptops that they don't use. This free space is so much that if you end up buying a hard disk because of mining, you have wasted your money.
Cohen claims that Chia digital currency not only consumes less electricity compared to Bit coin; it is also more secure. Cohen launched the Bit Torrent protocol in 2001 while he was a student at the University of Buffalo. It is very expensive to provide the necessary equipment to attack the Bit coin network; but it is not impossible. However, attacking the Chia network does not seem simple at all.
You need to have a wider access to resources to attack the Chia network, not a set of networks. As we said, the resources of Chia network are the hard disk space of people who have registered in it. The cost of accessing these resources is huge, even more than the cost of the ASICs you need to attack the Bit coin network. Because of this, it is much more difficult to beat this system.
Although the "proof-of-space" consensus mechanism is theoretically more secure, it still has certain limitations. For example, the occurrence of a root attack may lead to repeated mining. Proof of time
In this type of attack, a bad actor who has a lot of network resources creates a new block chain to make it the main block chain when it is long enough. If the program is successful, the bad actor will own the block chain that most nodes have adopted. Thus, he can acquire any number of coins he wants or even cancel previous transactions.
In order to avoid such attacks, Cohen introduced the proof-of-time mechanism. This mechanism does not prevent the bad actor from rewriting the done work for years; but the occurrence of such an assumption requires a lot of time. Chia currency is expected to be launched by the end of this year; but the world will have to wait a little longer to get a greener crypto currency.
Green Crypto currency (late 2017) was created as a solution to Bit coin's environmental impact. This crypto currency is a practical, community-driven initiative and a low-consumption alternative to proof-of-work-based digital currencies. The company has also created a non-profit foundation to oversee the maintenance of the Green Crypto currency project.
The basis of creating Green Crypto currency to motivate environmentally friendly actions, and users can obtain it by using the intelligent system of collective car requests or buying organic coffee or doing volunteer work or putting assets at the disposal of the block chain network (staking) or using the desktop wallet or building a master node.
Green Crypto currency has a low-energy proof-of-stake algorithm-based functionality that uses Segwit (separated witness or Segwit) and a definitive master node as part of its proprietary protocol. This crypto currency can be traded through the partners of that company to buy goods and receive spending services or in Pro Bit, Mercatox, and STEX and Crex24 exchanges.