In a sustainable economy, more and more cryptocurrencies are emerging that are committed to a better environment. Not only do they use the Proof-of-Stake consensus algorithm, but the following coins go further. Discover our top 5 eco-friendly coins in this article.
1. Stellar (XLM)
is an open-source and decentralized financial network designed to easily send and receive different currencies. They aim to form one large decentralized payment platform for global payments, for all types of assets. Send, receive or trade dollars, euros, Bitcoin, or other cryptocurrencies. No more waiting for international payments as with conventional banks, but immediate transactions.
Sustainability is a key component for Stellar. The Stellar Consensus Protocol (SCP) is an energy-efficient consensus mechanism where financial systems can work together, in a sustainable way. They even have developed a framework to assess the electricity consumption and greenhouse gasses of blockchain protocols.
2. IOTA (MIOTA)
is a distributed ledger to easily exchange data between different devices. This is both between people and machines. With this, they aim to be "The Internet of Things" (IOT); a global network of connected devices that send and receive all kinds of data.
IOTA uses "Tangle," a synonym for the Directed Acyclic Graph (DAG). Here, users validate transactions instead of the validators. As a result, no mining takes place. This makes IOTA not only eco-friendly, but also fast and inexpensive. IOTA is specifically designed to be energy efficient.
3. Ripple (XRP)
is a blockchain platform for transactions between different countries, banks, and even currencies. Users can quickly and cheaply transfer money worldwide. Ripple is therefore more often referred to as the "cryptocurrency for banks," making it the first network aimed at the financial sector that works in a decentralized way.
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 already exist, meaning no one can mine to mint additional XRP coins.
In addition, Ripple does not use the Proof-of-Work algorithm, but its own Ripple Protocol Consensus Algorithm. Again, there is no mining. This makes Ripple an eco-friendly coin.
4. Energy Web Token (EWT)
The name says it all: Energy Web Token
is a protocol around energy consumption and a green economy. In 2017, Energy Web Token was launched with a clear goal in mind: to provide eco-friendly blockchain solutions for both businesses and individuals. Energy Web Token is supported by Energy Web Foundation (EWF), a non-profit organization.
EWF's goal is to promote the use of renewable energy sources. For example, users who mine Bitcoin using renewable energy are rewarded for doing so. With an increasingly green economy, Energy Web has included other sectors too, such as automotive and DeFi. Energy Web Foundation uses blockchain technology to create a transparent, secure, and efficient energy network.
5. Cardano (ADA)
uses Proof-of-Stake, which is an energy-efficient consensus algorithm. But there's more. The Cardano team is committed to sustainability. Not only is blockchain the future, but taking care of the environment is also part of it.
Sustainable investing contributes to a sustainable world and sustainable economy. Cardano, therefore, focuses on:
Limiting the climate crisis
Promoting a fair society
Developing sustainable markets
Cardano has an annual sustainability report to track this development. The future is blockchain, in an energy-efficient way, without carbon emissions.