Green Alternatives to Bitcoin

Green Alternatives to Bitcoin

Green Alternatives to BitcoinIn May 2021, Tesla CEO Elon Musk surprised many people when his company reversed the decision to accept Bitcoin currency as a payment option. According to his tweet, the reason for suspending Bitcoin was due to the impact of cryptocurrency mining on the environment.  It was a surprising decision since Elon Musk himself is a crypto fan, and his company had just accepted Bitcoin in February 2021. 

As a result, crypto enthusiasts went online, and ever since, there has been a crazy-high level debate on the environmental effects of BTC. But note that Bitcoin-related energy consumption issues are not really a new topic, and it has been ongoing even before the tweet from Elon Musk. Most online stores and casino games nowadays support Bitcoin, which was proof that the currency had a promising future ahead. 

However, according to a study from the University of Cambridge, the crypto Bitcoin currency mining now uses more electricity in a year than the whole of Argentina. This is because powerful computers do the mining process, which requires more energy as they work day and night to resolve mathematical problems. Besides, the energy that these computers use is unusually high, which is raising concerns about the negative impacts on the environment.

Fortunately, not all cryptocurrencies consume excessive energy as BTC. There are others, which have proven to be a greener alternative than Bitcoin. Here is a look at other popular cryptocurrencies that are eco-friendly. 

Nano

When it comes to energy efficiency, then there is no other better and most loved Bitcoin alternative than Nano. Formerly known as RaiBlocks, Nano does not rely on mining, minting, or printing, which makes it sustainable and eco-friendly digital money. It was launched in 2015 and had feeless transactions. 

Chia

Founded in 2017 by Bram Cohen, Chia is another green alternative to Bitcoin. It uses a ‘proof of space and time’ model as its consensus device in the effort to try to be more power-efficient, unlike Bitcoin. This system uses storage space on the computer where a selection of cryptographic numbers is stored as “plots”. Chia is one of the hottest cryptocurrencies to mine since it does not need the costly high-powered GPU.

Stellar (XLM)

Released in 2014, Stellar or Stellar Lumens is an open-source network for payments and currencies. Stellar makes it doable to create, send, and even trade any digital representation of money, be it Bitcoin, dollars, etc. In short, Stellar’s main goal is to make all the global financial systems operate on a single network. Moreover, users can use Stellar to exchange tokens or money by taking advantage of the Stellar Consensus Period. The unique model used for validating transactions is more energy-efficient since it only requires a small number of nodes for the process. As a result, XLM does not need huge energy demands like Bitcoin. 

SolarCoin

It is a fairly low-carbon cryptocurrency developed with the main purpose of encouraging the installation of solar panels. SolarCoin is not mined by computers solving mathematical problems. Instead, it uses an algorithm for recording transactions, which uses about fraction energy of that of Bitcoin. Given the increasing debate on Bitcoin and its massive impact on the environment, it is likely that most crypto fans will turn to green alternatives.

Frederick Catcher

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