How to identidy the most sustainable crypto?
Each cryptocurrency has a different level of sustainability, but as a general rule, the more popular, decentralized, and secure the blockchain, the higher energy demands it may have. The underlying technology plays a significant role in sustainability as well.
Which blockchain models exist?
There are many blockchain models such as Proof of Work (PoW), Proof of Stake (PoS), Proof of Authority(PoA), Proof of Importance (PoI), Proof of Elapsed Time (PoET), Proof of Burn (PoBr), Proof of Familiarity (PoF), Proof of Benefit (PoB), Proof of Participation and Fees (PoPF), Proof of Vote (PoV), etc. The two prevailing ones in terms of daily volume are currently PoW & PoS.
POW vs POS
Proof of Work blockchains (Bitcoin, Ethereum) are generally perceived as more secure than Proof of Stake blockchains (Cardano and Solana), even though this is not factually correct (Reference). What is factually correct is that PoW blockchains have exponentially higher energy demands than other blockchain models. The annual energy consumption of Cardano was reported to be 6 gigawatts while Bitcoin’s is 115,850 gigawatts (Reference)
Since PoS is thousands of times more energy-efficient, many PoW projects are shifting their model to PoS, with Ethereum being the most notable of them.
What is the most efficient blockchain?
It is a less known (and popular)opinion that the most efficient crypto consensus mechanism is not blockchain at all. Despite that just two established blockchain technologies that dominate the market, there are newer technologies such as the Direct Acyclic Graph (DAG) algorithm (“Block Lattice”), which are much more sustainable than any PoS implementation.
Top 10 sustainable crypto of 2022
Below we present the list of the top 10 sustainable cryptos of 2022. The list will get updated and a more detailed analysis for each presented coin.
- NANO $NANO
- IOTA $MIOTA
- Chia $XCH
- SolarCoin $SLR
- MetaHash $MHC
- BitGreen $BITG
- EOSIO $EOS
- Cardano $ADA
- TRON $TRX
- Hedera Hashgraph $HBAR
Why $Nano is the most sustainable crypto?
This technology is implemented by the Nano cryptocurrency and makes all nano transactions feeless, instant, and ecofriendly using a weight-less consensus protocol called the Open Representative Voting (ORV). Nano merely uses 0.000112 kWh per transaction which makes it the most energy-efficient crypto in the world.
How can new sustainable crypto be attractive to investors?
Sustainable crypto can be an appealing option to investors if they prove that their security standards are as good or better than the existing market-leading technologies.
A long history of reliability, peer, reviewed open-source code, and successful high volume stress tests can be important indicators to consider to establish a good reputation for those new, eco-friendly technologies
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