Everything You Need to Know About Eco-Friendly Crypto

I know what you’re thinking. How can crypto be eco-friendly? Well, certain cryptocurrencies can be considered eco-friendly, especially compared to other forms of digital technology. This article will tell you everything you need to know about eco-friendly crypto.

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As a (well-informed) climate optimist, I believe we have the tools to build a sustainable future. The same future that’s also heavily reliant on technology to grow and prosper. If cryptocurrencies and blockchain technology has any say in future tech, then we must also take them seriously as potential solutions for solving climate change.

But, how can we ensure that Web3 initiatives are sustainable and eco-friendly?

The key lies in learning from past mistakes and designing new systems that work in harmony with nature. Rejecting innovation is not the solution. We must embrace it and guide its development in a direction that benefits the environment.

This is why I am a firm believer that the climate community should join hands with the crypto movement. Yes, crypto is a trillion-dollar industry, but it's also a space that holds incredible potential to address the climate crisis.

Admittedly, navigating the crypto-climate conversation can be overwhelming, with contradictory and complicated information. But I'm here to tell you that there is hope. Many crypto projects are taking steps in the right direction towards sustainability, and they're doing it with a sense of purpose that extends beyond mere vanity.

Here's a list of 9 cryptocurrencies committed to creating an eco-friendly, sustainable future. Let's work together to build a world that's good for both humans and the planet.

Cryptocurrencies have been under fire from climate-conscious critics due to their massive energy consumption required for mining coins on the blockchain. However, the solution to this problem may be easier than we think.

While some cryptocurrencies have already incorporated sustainability into their company ethos, the blockchain industry as a whole needs a major transformation if it wants to successfully brand itself as a beacon of a brighter future.

If you think Bitcoin's energy use is staggering, consider that Ethereum, the blockchain on which most NFTs are operated, isn't much better.
One NFT can consume the same amount of energy as a US household over two months. Even though not all NFTs consume that much energy, the average does hit around two weeks worth of energy. It's clear that something must be done to make NFTs (and Ethereum) more sustainable.

One solution is to move away from the proof-of-work model currently employed by major blockchains like Bitcoin, which requires loads of energy because every miner has to prove work every time a transaction is made.

Proof-of-stake models are more energy efficient and require fewer nodes to mine. This system is based on the amount of the currency the miner owns. The more you own, the more validation you have on the blockchain.

Another solution is to create new consensus algorithms like Ripple, which created its own consensus algorithm to operate its blockchain. This approach deters fraudulent activities, speeds up transactions, and encourages energy efficiency without compromising reliability.

It's clear that a major shift is necessary to ensure the sustainability of cryptocurrencies. Converting mining activities to renewables is not enough, and cryptocurrency is not inherently wasteful. Building new systems, refining old ones, and creating new algorithms will pave the way for a greener crypto future.

The power of web3 – that open-source, decentralized third wave of the internet – lies in its ability to grow and adapt to a changing world. As more people adopt cryptocurrency, these projects can reposition themselves to match consumer demand for sustainability initatives.

Sustainable cryptocurrencies are about the future as much as they are about the present. Critics are quick to point out the mining hardware needed to support blockchain networks.

However, this article by Coindesk's Peter St. Onge does a great job highlighting the environmental limits of fiat currencies as well.

In other words, it is easy to criticize something new, but much more daunting to lift your hood up and examine the broken systems that already exist.

Sure, crypto has a long way to go in the energy space. But joining a movement built on 21st century principles is more much appealing to a future-oriented consumer. Isn't sustainability about the future, after all?