Citing long-brewing environmental concerns Elon Musk announced that Tesla Inc. will not be accepting bitcoin for the car purchase. Btc’s power-hunger has provoked a passionate debate about the energy consumption of cryptocurrencies. While efforts are being made to reduce the carbon footprint of digital currency, some investors are getting inclined towards greener alternatives.
In fact, it’s incredibly tough to point to any currency as being ‘greener’ than others. Having said that, some virtual currencies are inherently more energy-efficient than Bitcoin. Unlike bitcoin that relies on the ‘Proof of Work’ system, cryptocurrencies that use a ‘Proof of Stake’ or ‘Proof of Storage’ system consume far less energy.
So, if not Bitcoin then what? Check out more sustainable contenders.
News doing the rounds for a long time that ethereum going green, but the cryptocurrency still consumes enough energy. However, it is greener than bitcoin. Founder Vitalik Buterin has long accepted its wastefulness intended to replace the existing Proof of Work with a Proof of Stake model.
With ethereum 2.0, the developers achieved some success by adopting a two-chain approach where both models temporarily run along with each other. With developments still going on, a one hundredfold reduction in energy per transaction is to be realized soon.
With a power consumption of 0.5479 kWh per transaction, ADA is next in the list of being least power-hungry. With the aim to bring about “positive global change”, it claims to be the first blockchain platform built through peer-reviewed research. Founded by Charles Hoskinson, cryptocurrency can also be used for digital contracts.
Its “Proof of Stake” system helps Cardano become more energy-efficient than bitcoin. Further, it can meet the demand of crypto without compromising on efficiency and speed.
Recently introduced, Chia advertises itself as the solution to Bitcoin’s power-hungry operations. The latest cryptocurrency is intended to be eco-friendly and “green”. Created by Bram Cohen, Chia Networks is based on proof-of-space-time.
Besides, there are other greener cryptocurrencies as well. The list includes SolarCoin (SLR), Stellar (XLM), BitGreen (BITG) and many more.