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Sustainability has become an increasingly important focus of many crypto projects in an attempt to repair some of the reputational damage done by Bitcoin’s massive energy use. These cryptos employ eco-friendly technologies to lower their energy requirements, enabling them to reduce (or remove) their carbon footprint.
This guide takes an in-depth look at the most sustainable cryptocurrency projects on the market, diving into how they help positively affect the environment, before exploring some of the reasons why sustainable cryptos are so important.
The Most Sustainable Cryptocurrency Projects in 2022 – Top 10 List
Many of the most energy-efficient cryptocurrency projects ensure sustainability is high on their list of priorities, helping them appeal to a broader audience of potential investors. Listed below are ten of these projects, each of which will be reviewed thoroughly in the following section:
- Chia (XCH) – The Most Sustainable Cryptocurrency in 2022
- Ethereum (ETH) – Best Sustainable Cryptocurrency for dApp Developers
- Tezos (XTZ) – The Most Sustainable Crypto in the Blockchain Niche
- Polygon (MATIC) – Sustainable Scaling Solution for the Ethereum Blockchain
- Avalanche (AVAX) – Highly-Scalable Blockchain with Low Energy Requirements
- Algorand (ALGO) – Environmentally-Friendly Blockchain With Impressive Sustainability Practices
- Ripple (XRP) – Leading Sustainable Energy Crypto in the Payments Sector
- TRON (TRON) – Low-Energy Network Using Delegated Proof-of-Stake (DPoS) Consensus Protocol
- Stellar (XLM) – Sustainable Payments Network With CO2 Removal Pledge
- Cardano (ADA) – Popular Blockchain with Strong Sustainability Mission
A Detailed Look at the Most Sustainable Cryptos to Invest In
Those looking for the crypto with the most upside will likely gravitate towards sustainable cryptos, as these projects are designed with longevity in mind. To that end, most of these projects use cutting-edge technology to ensure minimal electricity requirements whilst offering valuable use cases.
With that in mind, let’s dive in and explore the most sustainable crypto projects in more detail.
1. Chia (XCH) – The Most Sustainable Cryptocurrency in 2022
Our pick for the most sustainable crypto this year is Chia. As well as being one of the best cryptos to buy right now, Chia is a blockchain network focusing on making a positive environmental impact, evidenced by its branding and marketing. The primary way that Chia makes this impact is through its drastically reduced energy requirements, resulting from its unique ‘Proof-of-Space-and-Time’ consensus protocol.
This makes Chia different from the best proof-of-stake coins – and arguably even more energy-efficient. With Chia’s protocol, blocks are validated through network participants ‘plotting’ space on unused hard drives. Not only does this reduce electronic waste, but it also means the Chia network can operate with minimal electricity.
To put this into perspective, Chia uses just 0.19 TWh of electricity per year – around 0.16% of Bitcoin’s annual energy consumption. Chia’s team has even constructed a well-researched ‘Green Paper’, explaining in detail how this process works. As such, Chia is undoubtedly a sustainable crypto cryptocurrency with a bright future ahead.
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2. Ethereum (ETH) – Best Sustainable Cryptocurrency for dApp Developers
Ethereum needs no introduction, as the network has surged into the limelight over the past few years due to its smart contract functionality. This functionality has made the Ethereum network the go-to for most decentralized application (dApp) developers, enabling the metaverse, NFT, and decentralized finance (DeFi) niches to prosper.
At the time of writing, the ‘Ethereum merge’ has just occurred, which saw the network transition to a Proof-of-Stake (PoS) consensus protocol. This is a sustainable crypto mining alternative, as it validates transactions through staking, which requires no advanced hardware. As such, Ethereum is now far more energy-efficient than before.
As noted on Ethereum’s blog, the network will now consume around 99.95% less energy than when it used a Proof-of-Work (PoW) consensus mechanism. In turn, Ethereum now describes itself as a low-carbon platform, making it more appealing to eco-conscious developers. The move to a PoS consensus even makes the network harder to attack, highlighting the comprehensive benefits of ‘the Merge’.
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