What does Eco-Friendly Coins mean?
After Tesla CEO Elon Musk announced that Tesla had suspended vehicle sales with Bitcoin, the eyes were turned to eco-friendly coins.
As it is known, Bitcoin has a structure where energy is used intensively. This is called Bitcoin’s proof-of-work (PoW). Like Bitcoin, the other leading cryptocurrency Ethereum is currently using proof of work. On the other hand, Ethereum will soon transition to a no-energy system called proof-of-stake (PoS).
Therefore, when it comes to environmentally friendly cryptocurrencies, cryptocurrencies working with the PoS system should be looked at. So which ones are they now?
What Are Eco-Friendly Coins?
Cardano (ADA), which is the fourth largest cryptocurrency in the market with a value of $ 62 billion, works with the PoS system. Therefore, there is no significant energy consumption while the Cardano blockchain is running. Cardano founder Charles Hoskinson claims that the network consumes only 6 GWh of power. Cardano was created by Charles Hoskinson, one of the founders of Ethereum.
XRP is another cryptocurrency that can be called environmentally friendly. However, XRP’s system is not based on PoS or PoW. Using a distributed ledger called “XRP Ledger”, XRP is based on a protocol called “Ripple Protocol Consensus Algorithm (RPCA)”. The company Ripple, which created XRP, has also frequently emphasized that XRP is sustainable and environmentally friendly. This is understandable given the sensitivity of US President Joe Biden and his team to climate change.
XRP has been in operation since 2012. It is claimed that the network can handle over 1500 transactions per second.
XLM began to be called the sister coin of XRP, as it moved in parallel with the price of XRP for a period of time. XLM has a similar structure to XRP, and Stellar founder Jed McCaleb was also on the founding team of XRP. Created by forking from Ripple in 2014, XLM is not based on a PoS or PoW system and uses a distinctive, environmentally friendly system.
EOS has experienced a significant price increase in recent days. This increase was due to the announcement that Block.one, the parent company of EOS, will launch a crypto exchange based on the EOS blockchain with an investment of $ 10 billion and the participation of famous investors.
On the other hand, since EOS is based on PoS, it does not consume energy, which makes crypto money environmentally friendly. EOS was founded in 2017 by Dan Larimer and Brendan Blumer.
Created by Bram Cohen, the founder of BitTorrent, Chia, as the name suggests, is a project focused on environmental friendliness and sustainability. Chia network is a blockchain and smart transaction platform that allows users to use available hard disk space to run the decentralized network. Instead of PoS, which we call proof of labor, the network uses a system that can be called proof-of-space-time. Chia was created in 2017 precisely to counter the excessive use of energy in cryptocurrency mining.
Nano, Holo, Algorand and Ethereum can be cited as other examples of eco-friendly coins when it moves to the PoS system.
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