Bitcoin is the least eco-friendly while Stellar is the green coinNovember 22, 2021
Cryptocurrency mining and environmentalism in general don’t go hand-in-hand in conversations about the evolution of the blockchain industry, a tweet from Elon Musk is enough for the crypto community to start worrying about what’s going on. What Bitcoin miners and proof of work (POW) are doing to the planet.
The Forexsuggest investigation studied several cryptocurrencies and measured their pollution levels, calculating estimated carbon emissions and the amount of resources needed to combat their impact.
In the report, Forexsuggest pulls data from Statista, Business Insider India, Laptop Mag and other sources. After aggregating, they calculated the carbon footprint and the rate at which those emissions rose.
The least eco-friendly cryptocurrencies
As expected, Bitcoin and Ethereum are the two most polluting networks on the planet, they also have the most concentration of hashing power.
In 2021 alone, Bitcoin emitted about 56.8 million tons of CO2, 2.5 times more than Ethereum. According to Forexsuggest estimates, about 284.1 million trees are needed to neutralize all the pollution emitted by Bitcoin miners.
While Ethereum is much less polluting, it isn’t as good: Ethereum miners have generated 22 million tons of CO2 this year, requiring nearly 110 million trees to counteract its effects.
With Bitcoin Cash, a fork of Bitcoin in 2017 with the goal of mining larger blocks (resulting in a more polluted network), comes third on the list with 1.5 million tons of CO2. However, it is the network with the highest annual increase in emissions, increasing pollutant emissions by 748%.
Research reveals that Bitcoin mining has reduced pollution levels by 5%, possibly after miners left China and moved to countries with greener energy sources, such as the United States. .
The most eco-friendly cryptocurrencies in 2021
But the crypto industry also has green alternatives. And hard to believe, they are less popular tokens when compared to energy-intensive cryptocurrencies.
The third place on this friendly list is occupied by Nano. This cryptocurrency is non-mining and is not based on blockchain but on block-lattice technology. Nano can process about 125 TPS with only 0.000112 kWh per transaction, which is the minimum CO2 emissions.
The second most effective coin is IOTA, another network that does not use blockchain but uses Directed Graph Open Circuit (DAG) technology with probabilistic consensus. It requires about 0.00011 kWh per transaction.
According to the research, the most eco-friendly cryptocurrency is Stellar, a competitor to Ripple that claims only 0.0003KWh per transaction, which is only a third as much as IOTA. Stellar requires 0.00072 oz CO2 per transaction. This is almost nothing when compared to 1,060.5 lbs of Bitcoin per transaction.