Environmental problems become more and more acute every year. It is impossible to avoid them in almost any industry or context today. The same is true of the crypto world. Traditional cryptocurrency mining has a huge problem of inadequate energy costs. In the future, this approach will become definitively unacceptable, and already today we have to change approaches to mining and everything to do with cryptocurrencies to be eco-friendlier.
Eco-friendly cryptocurrencies and projects that aim to save the planet are now emerging. Significant faces of the crypto world are also actively investing heavily in environmental initiatives, all of which suggest the use of crypto in saving our common home. Let’s talk about it all in more detail in this article.
New environmentally friendly cryptocurrencies
So, blockchain mining and transactions are extremely energy-intensive. These processes today are globally comparable in total to the energy costs of a small country. And the problem is growing.
By the way, not all cryptocurrencies have equal energy costs. Many factors vary in these figures. Let’s take a few of the most popular cryptos on the market. While Chia spends 0.023 kilowatts per hour per transaction, and Dogecoin differs by 0.12 kWh, the second most popular Ethereum is marked by 62.56 kWh, and the leader Bitcoin by an unthinkable 707 kWh. If the figures of the first two cryptocurrencies were extended to all market players, the problems would decrease tremendously. However, the most popular cryptos absorb the most energy, and this fact should be kept in mind.
ETH and BTC adhere to the oldest cryptos, and their energy problems are related to this fact. If ways can be found to change the technology while preserving the infrastructure, it will allow them to maintain market supremacy. Otherwise, their inefficiencies will gradually hover before them like a death sentence, while cryptos that are independent of the high processing power of mining — such as the aforementioned Chia — come to the fore. The idea behind Chia goes beyond established standards by offering to mine for the amount of disk space rather than memory.
Another good example of a new technology aimed at reducing environmental damage is the Nano. This crypto is based on a simplified consensus protocol known as Open Representative Voting (ORV). This approach has given users a ratio of minimum energy consumption with maximum efficiency, and the creators get a hundred points of head start in the competition for the crypto world crown in the future.
Crypto projects with an environmental focus
Let’s move from the tools of the crypto world’s direct environmental impact to the indirect ones. The second important element of the foundation of eco-friendly crypto is profiled projects and initiatives that are intended in the original idea to benefit the planet.
For example, WePower is a blockchain platform for financing and trading renewable energy. It aims to make life easier for green energy producers and help attract investment by issuing tokens. The platform is made for the interaction between buyers and sellers of energy and aims to maximize the benefits for all participants in the process.
The main goal of WePower is to create an infrastructure for connecting renewable energy production and traditional energy system operators. The platform works like an auction, where energy suppliers can bid for their energy, and buyers can bid by specifying their desired volume and price. The buyer then receives a digital Power Purchase Agreement (PPA) indicating the price and volume of energy at the time of purchase.
This is the approach consistent with the values of the environmental movement, and blockchain technology acts as a trusted facilitator.
Another example is Plastic Bank, a project for the recycling and humane use of plastic. Blockchain in this case helps create a transparent supply chain and ensures maximum control over the return of used plastic for recycling. The project aims to stimulate the recycling of plastic in countries such as Indonesia. Many citizens of this country live below the poverty line, and selling used plastic for tokens that entitle them to buy goods and services on favorable terms will be a significant incentive.
WePower and Plastic Bank are examples of eco-friendly crypto within the same idea. There are also more global projects. For example, Crypto Climate Accord is a global initiative of members of the crypto world who work together to research and launch new environmental projects in the industry. This initiative helps the startups described above come to fruition with a high degree of probability.
Investments of crypto-world members in environmental projects
It is also worth considering the personal initiatives of big names in the crypto industry and investing “crypto money” in projects that are meant to improve life on planet Earth. The best example of this is the recent partnership agreement between Crypto.com and famous Hollywood actor Matt Damon. Crypto.com invested $1 million in Matt’s water.org project, which aims to provide people around the world with free access to clean drinking water. And this is just the beginning of the crypto industry’s impact on charitable causes.
The world of crypto is on the cusp of big environmental changes. It’s impossible to stay afloat by ignoring global trends. Big cryptocurrencies are not yet able to painlessly adapt to the changes, but new market entrants are addressing old eco problems, and big crypto names are investing their money to make life on the planet better in the future.