The Most Carbon Efficient Parts In 2022? – Tech Tribune France

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Cryptocurrency is moving into the mainstream as more and more people are forced to invest in a blockchain-powered economic future. Carbon usage has been a hot topic for cryptocurrencies since the start of 2021. Research shows that Bitcoin’s energy consumption is directly related to its usage; as Bitcoin’s value increases, so does its carbon footprint.

Leading cryptocurrency exchange comparison site Cryptowisser recently published a one-of-a-kind article, compiling a list of all major coins to show their crypto carbon footprint. After reading the list, we felt inspired to explore some of the most carbon efficient parts in 2022.

Understanding Crypto Power Consumption

Bitcoin is often used as an example of the industry, but it certainly does not represent the broader cryptocurrency market, as the vast majority of coins are built on Proof-of-Stake (PoS) protocols, as opposed to bitcoin’s proof of work (PoW). ). While a lot of attention is being paid to PoW protocols as being the main carbon footprint issue of crypto, in reality it is due to the lack of clean energy used in the world.

Cryptocurrency alone cannot solve the planet’s energy crisis. That said, ever since the cryptocurrency’s carbon emissions came to public attention, the community has responded by investing and developing projects aimed at mitigating the blockchain’s carbon footprint.

Considered the digital money of the crypto market, Ethereum has spent years assuring the community that it is going green. But, according to the latest crypto carbon footprint reports, it’s still not much better than Bitcoin. The long-standing plan to replace Ethereum’s PoW model with a PoS mechanism has been the slow and steady development of Ethereum 2.0. The project started in December 2020 and should finally be fully launched during the second quarter of 2022.

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Cards on the table, it is difficult to say that a particular room is “greener” than others. The large number of transactions performed for Ether and Bitcoin blockchains means that they consume much more than small coins. However, if you make these smaller coins bigger, they can be as bad as, if not worse than, Bitcoin. Given this, let’s take a look at which cryptocurrencies are crying out to be more sustainable than Bitcoin. In no particular order, let’s look at three.

Algorand (ALGO)

Algorand is a proof-of-stake blockchain that works by supporting smart contracts. A scalable network that gives ALGO holders proportional influence over the network. Released towards the end of 2019, ALGO is a relatively new coin on the block, but it certainly carries weight in the industry, making it into the top 25 coins by market cap. Algorand offers fast transactions and a pure PoS protocol, which means the network is accessible and reliable, using far less power than major currencies like Ethereum and Bitcoin.

Avalanche (AVAX)

Another smart contract blockchain using a PoS algorithm, the Avalanche Network is limited to 720 million AVAX coins. It was developed to enable the deployment of private or public blockchains, computing some 4,500 transactions per second at a lower cost than other PoS networks like Ethereum. Avalanche’s compatibility with Ethereum’s programming language (Solidity) is part of the reason why it regularly enters and exits the top 10 coins, providing developers creating DeFi projects, games, and NFTs a working platform.

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Hedera Hashgraph (HBAR)

The third coin we will discuss has supreme processing power, with the ability to process 100,000 transactions per second. HBAR is a PoS token and has a current supply of around 8 billion, with a fixed supply of 50 billion HBAR. A DeFi network used for in-app payments, micropayments, transaction fees, and network protection. Hedera is presented more as a graph than as a “chain” of blocks. To simplify any endless explanation, this means that the speed of transaction verifications increases with the number of transactions on the network, providing unparalleled scalability.

Key points to remember

The cryptocurrency industry has come under scrutiny for its high energy consumption, but the energy problem it faces is the same one we all face. The fact that our main source of energy remains fossil fuels, such as oil and gas, is the main problem. We have seen many new networks built on PoS protocols, which has undoubtedly made a significant difference, but crypto alone cannot produce green power.

It is clear that PoS is the preferred protocol for building energy-efficient blockchain networks. Overall, most of the carbon negative networks we see in the Cryptowisser list are running PoS or native consensus algorithms. It should be noted that there is a trend among the most carbon-neutral networks that many of them are contract-driven smart blockchains, such as Algorand, Avalanche, Solana, EOS, and Elrond eGold.

Another point to remember is the use of the network. Ethereum and Bitcoin have some of the highest daily transaction volumes, which means that despite having a PoS protocol, Ethereum receives a low score for its carbon footprint.

The crypto boom is upon us, with the digital finance space set to grow exponentially. As such, we are likely to see greener protocols and energy saving improvements across the board in the years to come.

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The Most Carbon Efficient Parts In 2022? – Tech Tribune France

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