Top 10 Sustainable Cryptocurrencies to Look at in 2022
Due to various parameters in existence like the consensus mechanism, it isn't easy to find out which cryptocurrency is greener than another. If you are a responsible investor and looking to invest in sustainable crypto assets, keep reading to find sustainable cryptocurrencies to invest in 2022.
However, consider this for educational purposes only. This is strictly not an investment guide.
SolarCoin (SLR)
The SolarCoin platform is designed to encourage real-world environmental behavior, such as the production of verifiably produced solar energy. It offers generates one Solarcoin for every Megawatt hour of solar energy output.
Powerledger (POWR)
To participate in the Powerledger network, POWR (the native token) is required. Energy trading, clean energy tracking, and verification can be secured using this token.
Powerledger is a distributed, decentralized network that enables producers to track, trace, and exchange energy in real-time, resulting in more stable and robust energy grids.
Powerledger collaborates with the Midwest Renewable Energy Tracking System (M-RETS) to make it easier to trade Renewable Energy Certificates (RECs) across North America.
Cardano (ADA)
Cardano consumes only 6 GWh of power since it uses the proof-of-stake consensus method. ADA helps the network to scale up without compromising speed, efficiency, and security.
Stellar (XLM)
After forking off from Ripple, Stellar came into the crypto world. Institutions supporting the protocol include IBM, Deloitte. With a lower carbon footprint, any traditional fiat or cryptocurrencies can be exchanged over the Stellar network. Rather than running a proof-of-work or even proof-of-stake algorithm over the entire network, the SCP is open-source and relies on a collection of trustworthy nodes to authenticate transactions.
As a result, the authentication cycle is significantly shorter and faster, lowering expenses and reducing energy consumption. A federated byzantine agreement is an algorithm behind this, and it is a more energy-efficient alternative to the Bitcoin-style classic mining network.
Nano (NANO)
Nano doesn't reply on mining, and hence it is a carbon-efficient cryptocurrency. Nano uses block-lattice technology, which extends blockchain to build an account chain for each network user. However, it still relies on a Proof of Work system.
The Nano platform employs an Open Representative Voting (ORV) mechanism. Account-holders vote for their preferred representative due to the ORV, who then works to confirm blocks of transactions securely and in a carbon-efficient manner.
Iota (MIOTA)
The not-so volatile cryptocurrency called Iota offers greater financial sustainability because of its Fast Probabilistic Consensus mechanism. IOTA's energy consumption can be tracked here. It is somewhere around 0.11 Watt-hours as tracked by Abbaszadeh Sori (a Ph.D. student), which is lower than Mastercard.
In May 2021, IOTA revealed estimates indicating a probable reduction in energy consumption of 33-95 percent due to the Chrysalis upgrade, lowering the energy demand to just over a millionth of a kWh per transaction.
EOSIO (EOS)
The simple setup of the blockchain, which uses pre-mined EOS tokens and costs nothing to developers, is a sustainable cryptocurrency to look at in 2022.
TRON (TRX)
Creators can directly share applications using the TRON network, making it an energy-efficient blockchain. From trading pre-mined Tronix to GameFi projects- you can delve into what TRON has on the table.
Signum (SIGNA)
Previously Burstcoin and the first Turing-complete smart contracts powered blockchain network; Signum utilizes proof of commitment to enter the list of sustainable cryptocurrencies. On-chain games and NFTs can be created on this network.
Holochain (HOT)
Holochain is an open-source framework for peer-to-peer applications, and its currency, HoloTokens (HOT), is decentralized and does not require mining. This implies you won't need any specialized processors, and the mining of this coin won't consume a lot of energy. Instead, HOT can be earned by anyone who hosts hApps on their computer or smartphone.
Holochain is fast and efficient, and it doesn't need proof-of-work or proof-of-stake, but it still allows for scalable crypto-accounting. P2P web applications can theoretically operate at a vast scale without using centralized data centers or infrastructure because each user offers a modest bit of computing and storage. However, this mainly depends on the number of users who sign up.
Strategy for sustainable crypto assets
In the interim, if you're an investor who has already redistributed assets from fossil fuel businesses and other non-sustainable investments into more sustainable ones, consider doing the same with any cryptocurrencies you own.
Of course, there's also nothing to lose by signing up for SolarCoin or Holochain if you already have a solar array or live a sustainable lifestyle.
Final Thoughts
It's impossible to say whether implementing additional validation methods will compromise overall security. Many promises have been made, as with many things in cryptocurrency, and only time will tell whether they can be kept.
Bitcoin's carbon-intensive proof-of-work methodology is an essential aspect of its anti-fraud defense. And, since proof of work has been employed by both Bitcoin and Ethereum, the world's two most popular currencies, it's undoubtedly the most tried and tested mechanism. Simply put, proof of work has been shown to be effective.
Various experts, however, contend that proof of stake is likewise fairly secure. Cardano and Ethereum have both spent a lot of time stress testing this model. It appears that blockchain-based companies are moving towards sustainable models mainly to earn the community's trust.