• Tue. Aug 2nd, 2022

Can crypto rewards go green? 6 eco-friendly cryptocurrencies to watch

ByHazel R. Lang

Jul 8, 2022

An oft-repeated criticism of cryptocurrency is that running lots of computers to generate Bitcoins is not good for green living. But did you know that many cryptocurrencies and crypto reward systems are eco-friendly and contribute to environmental causes?

Besides generating more revenue and more business in general, cryptocurrency helps save the world in a number of ways.

In this article, we’re going to discuss the green side of cryptocurrency – and some facts you probably haven’t heard yet.

Blockchain companies use and produce green energy

While everyone is worried about the increase in electricity consumption, few companies are doing much to address the problem – except for many blockchain-based companies!

Some companies that use 100% green energy include HIVE Blockchain Technologies, Tezos, Algorand, and Solar Coin, which use a variety of green technologies, from a local hydroelectric plant to solar power.

Meanwhile, companies like Powerledger have launched a platform that can be explained as peer-to-peer energy – a decentralized network that allows users to interact on a grid. They can track, trace and trade live energy with POWER crypto coins.

Learn more about solar energy incentives in this related article.

Crypto rewards are given to green owners

We have no choice but to build more houses… but what if we could make our houses eco-friendly? The Rhode Island House of Representatives is proposing to encourage green home projects by offering builders crypto rewards.

If homeowners could reduce the home’s carbon footprint and utility costs, the state could begin awarding more than $500 million in crypto rewards to eligible homeowners, money donated by the state as well as by local banks.

What if you are not an eligible owner? Can you still get crypto rewards? Sure! You can apply for a SoFi credit card and get crypto cashback points.

Crypto and low electricity consumption

What if a company could use less energy to create new cryptocurrencies? Companies like Nano generate crypto without even using traditional mining techniques. The company uses a more efficient energy model called Block network technology.

In this scenario, the company uses a chain of accounts for all of its users, and the account holders simply vote for a representative who confirms the series of transactions in bulk. This eliminates the simultaneous operation of multiple users updating the blockchain in real time.

Proof of Stake – The most efficient protocol

While many crypto companies are associated with the energy-intensive “proof-of-work” model, newer crypto companies are investing in “proof-of-stake”.

This transaction setting system is constructed differently. Miners don’t race against each other like with Bitcoin generation, which involves solving puzzles and validating transactions.

On the contrary, with a Point of Stake system, miners are selected by an algorithm and simply have to validate the transactions. This proof-of-ownership model uses far fewer hardware resources than the traditional proof-of-work model.

The Crypto Community Comes Together

There is such growing collaboration in the new crypto community that there is even a Crypto Climate Accord, which is an initiative supported by many companies that want to help decarbonize the industry’s footprint.

More than 250 companies have joined the initiative and have focused on common goals to reduce electricity consumption and eventually achieve net zero emissions over the next decade. Learn more about the Crypto-climate agreement organization!

Convert crypto currency to batteries?

Some have speculated that cryptocurrencies could work like a virtual battery. That is, in the sense that the value of a coin could represent locally stored solar and wind energy. This intermittently stored energy would be traded as a global digital asset as if transforming energy into a portable and transferable commodity.

Although this concept is far from being realized, it is the beginning of a new idea – which could eventually revolutionize society.

Most crypto technologies do not harm the environment – certainly not compared to any other resource we currently have. Cryptography is simply a new avenue that we haven’t fully explored yet.

But we’re starting to see the potential there, and making a greener world starts with taking stock of our resources and then figuring out how to use them more efficiently.

Learn more about how you can start fighting climate changeregardless of your resources or location.

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