How Are Cryptocurrencies Bad For The Environment?
The amount of power consumption for mining these tokenized assets is bothering the environmentalists. This mining process contains heavy-duty computer hardware that needs immense power to run so that individuals might compete for validating transactions to earn coins. It also requires a vast amount of electricity to solve complex mathematical puzzles. In addition, it utilizes energy sources that are not even renewable, like coal, fossil fuels, etc.
How Are The NFTs Not Eco-Friendly?
These are the digital tokens that utilize blockchain technology so that they can provide proof of their possessions, such as virtual artwork and any other digital property. These tokens often use Ethereum Blockchain for their operations, and their creation requires a massive amount of power supply.
Is There Any NFT That Is Not Bad For the Environment?
The development of more sustainable cryptocurrencies has been initiated. For instance, Ethereum 2.0 will consume 99.95 percent less energy than the rest of the cryptocurrencies. But it will take a few years to be launched.
Why Is Bitcoin Doing More Damage To The Environment?
The mining of Bitcoin takes an amount of energy that is more than the energy consumption of the entire country. According to enthusiasts, this impact is accelerated by the fact that China performs the majority of the mining, and that mostly depends on coal power. The prices of Bitcoin are continuously fluctuating. If the prices go high, the consumption of fossil fuels will also soar. Last year Elon Musk bought Bitcoins worth 1.5 billion dollars, but he announced that he would not sell these coins until and unless there is a more sustainable method of mining developed.
The Green Cryptocurrencies
Environmentalists believe that the mining process utilizes an alarming amount of fossil fuels. But, now, some currencies are more environmentally friendly and do less harm. So, the cryptocurrency and environmental concerns can be alleviated. Following are some of the Eco-Friendly Cryptocurrencies.
Cardano
Cardano is generated by one of the co-founders of Ethereum and works on a proof-of-stake mechanism. It uses the Ouroboros system, which is the first-ever peer-reviewed blockchain and can be adapted to global needs without compromising security or sustainability. The user buys tokens instead of mining the currency for joining the network, and it sets aside an immense amount of power. Cardano can process 1000 transactions every second.
Nano
Nano has been in the market since 2015 and is considered low energy using cryptocurrency. It uses Blockchain Lattice technology instead of mining that develops blockchains on the nano network for crypto traders. Nano tries to minimize the waste produced by crypto transactions. It lowers the energy consumption and injects efficiency by utilizing the Open Representative Voting mechanism. Nano is eco-friendly and produces instant transactions free of cost.
IOTA
IOTA does not need miners for processing the transactions, and it uses an alternative technology, Tangle. Smaller devices can handle it easily, and the power supply required is also low.
Solarcoin
This currency is sustainable at a global level and specially developed to promote the creation and usage of solar energy. Solarcoins are provided as compensation to the one generating it. Generators get a solar coin whenever they generate one-megawatt energy using solar technology.
Bitgreen
It developed as a green alternative to Bitcoin. It promotes environmentally friendly behavior by encouraging and rewarding individuals for sustainable coffee drinking, ride-sharing, and stepping forward. You can trade Biz Green coins on the exchanges, and you can also use them with individuals having the same currency.
Final Words
Consensus mechanisms are being upgraded, and renewable energy sources are being utilized. It will reduce the damage being done to the environment. Steps are being taken to eliminate or minimize the E-waste.
