Digital currencies are no longer a taboo subject among people. You can hear more and more individuals talking about it, and the bravest ones are going to decide to invest. However, if you want to become a crypto investor one day, you have to improve your knowledge. That is the only way to reach your goals and ensure appropriate financial life one day.
Without any doubt, cryptocurrencies are the most modern invention of today. However, the users of these digital currencies are also aware of their negative side. One of them is – the harmful effect that they have on the environment.
Issues such as air pollution, climate changes, global warming, and others are global. All the people that live on the planet Earth should participate in the procedure of solving all the mentioned problems. Different cryptocurrencies are, more or less, a cause of all the environmental issues. Fortunately, it seems that things are going to change in the future.
Ethereum Can Be the Most Environmentally Friendly Crypto One Day
Ethereum is usually the most popular alternative to Bitcoin among people. You can check here its value and changes this digital currency experienced in the previous period. That will tell you whether you should invest in it or not. However, Ethereum is also a good example of how things are going to change in the future.
Do you who is Vitalik Buterin? For those that do not know, he is the creator of this lovely crypto. In many of his interviews, he started to talk about the changes that Ethereum will experience in the future. One of the topics he often covers is eco-friendly issues and how the production of ETH can change in the future.
Believe it or not, Ethereum 2.0 is going to be more eco-friendly than its direct competitor Bitcoin. Buterin confirms that energy consumption will reduce by around 99% in the future. Yet, to reach that goal, Ethereum has to go through a bunch of changes.
Before everything, Ethereum will no longer exist from Proof Of Work. Instead of that, the entire system will switch to the so-called Proof of Stake system. If this change happens soon, it will primarily impact the price of computing systems that people use.
If you are the type of person that likes to gain information, then the next part will be interesting for you. Did you know that the process will be divided into three different stages?
The first stage is already happening, and it covers all the procedures of staking ETH that will enable valid software. Hopefully, the second stage will start soon and it will focus on the replacement of systems that we previously explained. Finally, the third system will involve the process of sharding. Thanks to that process, the entire system will divide the database horizontally which will enable the spread across the entire network.
So, is Ethereum the most environmentally friendly cryptocurrency? Not for now, but it has the potential to reach first place on that list. In the meantime, we would like to highlight the examples of eco-friendly cryptos and explain to you how exactly they function.
Chia is probably the best example of eco-friendly cryptocurrency. People that are producing this crypto are using the concept known as proof of stake. People can easily mine this crypto with the laptop and computers. The only thing they will have to do is to download the process.
After they download the necessary program, the program will start the plotting process instead of you which will allow you to start the farming of this crypto. This only confirms that people do not have to spend a lot of electrical energy. It is not just a budget-friendly option; it is also an eco-friendly solution that most cryptos would probably want to use.
Is everything around this crypto perfect?
Unfortunately, the answer is “no”. Some people claim the production of computer hardware has grown because of it. Logically, that negatively influences the entire environment. Hopefully, this is something that will change in the future.
Writing the list of most eco-friendly cryptos without mentioning Cardano would be unfair. The system that this crypto uses is proof-of-stake. This system is well-known under the name Ouroboros. All of its users only have to purchase tokens which will ensure their entrance into the network.
The developer of this crypto is Charles Hoskinson. A more interesting fact for the readers is probably that Hoskinson is the co-founder of Ethereum as well. Because of that, he is probably aware of the harmful effect that cryptos have on the environment better than anyone else.
Just like Ethereum, Cardano has the perspective to grow. These eco-friendly solutions will probably boost its popularity in the next couple of years. Currently, the amount of electrical energy that people need to spend is 0.55 kWh on average. Doesn’t this seem amazing?
It seems that the creators of this crypto were aware of the global problems that we talked about. That is the reason why they decided to make a green alternative to Bitcoin. The system that Bitgreen uses is amazing. It rewards all of its users whenever they take some eco-friendly action. For instance, you can get a reward whenever you drink sustainable coffee, volunteer in some eco-friendly projects, etc. In other words, Bitgreen is a motivation for all the people that want to change the planet Earth!
The way Solarcoin and Bitgreen function are almost identical. However, this time, you will get a reward whenever you manage to create solar energy. More precisely, whenever you create a megawatt-hour of solar energy, you will get one coin. Just like in the previous case, this digital currency is pure motivation!
If you are the type of person that is aware of global environmental issues, then we are pretty sure the news from the crypto world is making you happy. Ethereum plans to make the production less harmful by changing the way people produce this crypto.
On the other hand, new eco-friendly digital currencies are appearing almost every week or month. Because of that, we will give the right to ourselves and say that things are going in the right direction. Are you ready to become a part of that journey?