Last Updated on April 26, 2023 by Ecologica Life
In this article we will explain what a cryptocurrency and green cryptocurrency is and what some of the top green cryptocurrencies are.
What is Cryptocurrency?
Cryptocurrency is a digital payment system that doesn’t rely on banks to validate transactions. Payments made using cryptocurrencies do not exist as actual physical coins that can be transported and exchanged; rather, they only exist as digital entries to an online database that detail individual transactions. Digital wallets are where cryptocurrency is kept.
Cryptocurrency earned its name due to that fact that transactions are verified using encryption. The goal of this encryption is to offer security and protection to its users.
The first cryptocurrency was created in 2009 and is still the most well-known today: Bitcoin. A large portion of cryptocurrency interest is in trading for financial gain, with speculators at times driving prices skyward. However, bitcoin has come under scrutiny recently because as of 2022 bitcoin mining is estimated to be responsible for 0.1% of global greenhouse gas emissions.
What is Green Crypto Mining?
Energy is needed to run the computers that verify and store bitcoin transactions, or “crypto mining.” This energy may originate from burning coal or other fossil fuels. Fossil fuels are a source of carbon emissions that accelerate climate change.
Green crypto mining, in contrast, relies on carbon-free renewable energy sources including solar power, hydroelectric power and nuclear energy.
What is the Best Green Cryptocurrency in 2022?
It’s quite challenging to identify any particular cryptocurrency as being “greener” than others. This is due to the numerous factors that are involved. We’ve done some research however and we have complied a list of some of the top green cryptocurrencies:
According to Cryptonews and some other websites. IMPT is the greenest cryptocurrency of 2022. IMPT is a blockchain carbon credits system aimed at bringing carbon credit trading to the people.
For those who don’t know, carbon credits are a form of “permit” that let the holder emit one tonne of CO2 (or greenhouse gas equivalent). These carbon credits can be traded, typically between businesses, as a means of adhering to legal emission limits.
Consider the scenario in which a business is on track to exceed the emissions threshold. In that situation, it can buy carbon credits from a business that is probably going to emit less CO2 than permitted. Both businesses stand to gain from this process, yet the “net emissions” stay the same.
Alternately, users can “retire” their credits permanently and thereby actively help to lower CO2 emissions. Users that use this strategy will be rewarded with a special digital artwork NFT.
According to its website “SolarCoin is an alternative digital currency that works like air-miles for solar electricity generation.” So how does it work?
- A SolarCoin is awarded to the individual for each Mwh of energy produced
- However, going solar and generating solar energy yourself is the only way to get SolarCoin for free. This makes sense given that the incentive seeks to increase the use of solar energy. Similar to the concept of “mining” cryptocurrencies.
- Additionally, anyone can invest in SolarCoin on any cryptocurrency exchange, which gives it similar attributes to Bitcoin.
The “farming” process used by chia employs hard drives – a concept known as proof of space – rather than the mining, proof-of-work approach used by bitcoin, which relies on computer processors.
- Chia coins can be farmed on the hard drives of laptops and desktop computers – and unused space can be used for “plots.”
- Once the software has finished downloading, your computer will start farming chia and will do the plotting for you.
- Chia farming is made simpler for home users thanks to this method because it doesn’t require as much electricity as cryptocurrency mining.
- However, some critics still claim that chia isn’t so sustainable because it has led to a significant surge in demand for computer hardware and growing levels of e-waste.
If you are deciding to invest in a blockchain technology, why not choose an eco-friendly blockchain?