One of the criticisms that have been leveled against the green crypto project and cryptocurrencies in recent years is their extreme energy consumption. As of August 2022, between 120 billion and 240 billion Kw/h are expended on crypto assets alone globally. This figure exceeds the annual electricity usage of countries like Argentina and Australia.
This electricity usage is why many countries like China have banned the trading and mining of cryptocurrency. The fact that the energy consumption that cryptos like Ethereum and bitcoin require is beyond what their power infrastructure can handle is why many countries in Africa and Asia have also either banned the currency or are otherwise reluctant to adopt it. Not only this, it is why mining cryptos like bitcoin is so expensive for miners.
It is for this reason that analysts have predicted that crypto project creators must find a way to make cryptocurrency more eco-friendly if they wish to make it more popular. Several crypto project creators are taking up the challenge, and creating more eco-friendly cryptocurrencies, especially as an alternative to popular cryptos like Bitcoin and Ethereum.
In this article, I will discuss some new green crypto projects that you can invest in if you are looking for green crypto projects. Of course, several cryptocurrencies have green credentials, so this article is going to focus on the top new coins to invest in.
5 Green Crypto Projects to Invest in
-
Algorand
One of the reasons why Cryptos like bitcoin and Ethereum consume so much energy is their proof of work-based blockchain. The Algorand crypto uses a “proof of stake” blockchain instead, which doesn’t need the kind of power-consuming ASCIIs.
Furthermore, the Algorand creators claim that all the transactions on the coin’s blockchain will run a smart contract that will offset the transaction’s carbon footprint without the user needing to perform any action.
The Algorand coins also use part of its network fees to buy carbon credits through an app called Climate trade
-
Solana
Solana is one of the most popular green cryptos you can find out there. For one thing, its blockchain is more efficient, being able to process 2000 transactions per second and up to 65000 transactions.
Just like Algorand, Solana’s blockchain also uses a proof of stake model instead of the energy-inefficient proof of work, but it goes even better by combining it with proof of history. The hybrid model allows the Solana blockchain to process transactions even faster.
-
Nano
The creators of Nano want to create a cryptocurrency that will be different from other cryptos in its ecological advantages, a truly green crypto project. Therefore instead of using proof of work, proof of stake, or any kind of chain that record any transactions, Nano instead creates accounts that connect in a latticework where each user controls their account. The transactions that occur end up requiring so little power that even basic computers can power them. That way the crypto doesn’t leave a higher carbon imprint that than is necessary.
Of course, Nano is a relatively unpopular crypto as compared to others in this list. Its green credentials give it plenty of room to grow larger.
-
Cardano
Perhaps next to Solana, Cardano is another of the altcoins that crypto traders and miners who want to be on the green side are moving towards. Like Algorand and Solana, it also uses the proof of stake transaction model. It is the largest proof of stake-based cryptocurrency in terms of market capitalization.
Cardano’s creators aim to create a programmable ecosystem that addresses real-world problems. It is also already exercising its green credentials through its partnerships. Not too long ago, it established a partnership with the Ethiopian government that allows schools to store their records on the blockchain.
-
Tectum TET
Tectum is one of the fastest-rising cryptos, and that makes it one of the most attractive to invest in. It is the only Blockchain Network to employ the Proof-of-Utility protocol, which makes it one of the fastest transaction-processing blockchains at the moment. The protocol optimizes data distribution in an energy-efficient way and allows the blockchain nodes to verify 1 million digital transactions per second.
The thing is that the TET crypto is not yet as popular as the other cryptos in this list but its proof of utility feature is likely to engender several use cases beyond just crypto coins. Also, it is safer and more efficient than the proof of work model.
How do you know which crypto projects are green crypto projects?
If you have been paying attention to the cryptos in this list, you will realize that none of them use the proof of work model to create new coins. Therefore it is safe to say that it is the proof of work model that create the energy inefficiencies that occur in stable coins like Bitcoin and Ethereum. So one very good way you can identify green crypto to invest in is to examine its transaction model.
Another way you can identify green crypto is to look at its terms and conditions. Green crypto projects usually openly advertise their green credentials and list them as part of the goals of the project. You can identify green crypto by its energy usage.
CONCLUSION
Green crypto projects are the future of cryptocurrency. They not only reduce energy efficiencies in advanced countries, but they also “democratize” cryptocurrencies, allowing citizens of developing countries without the power infrastructure to sustain the proof of work model to also be able to mine and trade in cryptocurrency.
Unfortunately, it is the coins that use the proof of work model that is regarded as stable, but the green cryptos have not been verified as safe. For example, XRP another green crypto that is popular enough is currently embroiled in a legal tussle with the American Securities and Exchange Commission, which has slowed its trade somewhat.
In trading crypto, ensure that you do your research and ensure that you are in it for the long haul rather than for a short while.