The global community is increasingly aware of environmental issues as producers and consumers focus on green technology, sustainability, and social responsibility. This shift in concern has also impacted the cryptocurrency sector, with investors seeking eco-friendly cryptos to buy in November 2024 and beyond.
Current environmental challenges are influencing the future direction of blockchain technology. As such, leading crypto projects are making efforts to merge security, scalability, and sustainability by utilizing innovative underlying blockchain technologies and consensus mechanisms, moving away from the well-known energy-intensive proof of work (PoW).
While PoW, employed for Bitcoin (BTC) mining, continues to be the most secure and dependable blockchain mechanism, it has a major drawback: high energy consumption.
Follow along as we explore five eco-friendly cryptocurrency projects worth buying in November 2024.
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Ethereum (ETH)
The first environmentally friendly cryptocurrency on our list is Ethereum, the second-largest cryptocurrency by market cap. On September 15, 2022, Ethereum transitioned from an energy-heavy Proof of Work (PoW) model to a Proof of Stake (PoS) consensus mechanism.
This approach randomly chooses validators to propose new blocks and confirm transactions approximately every 12 seconds. This system depends on ETH staking, which acts as collateral to encourage honest conduct among network validators.
Following the upgrade to Ethereum 2.0, energy usage on the Ethereum blockchain network was cut by over 99%, making Ether one of the most eco-friendly cryptocurrencies.
Additionally, Ethereum’s co-founder, Vitalik Buterin, has stated that the shift to PoS could decrease global electricity consumption by around 0.2% and greatly diminish carbon emissions linked to cryptocurrency.
Ripple (XRP)
XRP, the native cryptocurrency of Ripple and the XRP Ledger (XRPL), is recognized for its relatively low carbon footprint compared to other digital currencies.
In 2023, Ripple made strides toward carbon neutrality by investing $100 million in carbon markets and setting a goal to achieve carbon neutrality by 2030.
At the same time, the XRPL is acknowledged as one of the pioneering carbon-neutral blockchains, primarily because it uses a Federated Consensus mechanism instead of proof-of-work strategies.
Toncoin (TON)
Toncoin (TON) is also one of the leading eco-friendly cryptos. It was launched in 2018 when Telegram’s messaging service launched a whitepaper for a layer-1 blockchain called the Telegram Open Network.
Like Ethereum, Toncoin uses a Proof-of-Stake consensus mechanism, significantly lowering its ecological footprint compared to conventional mining techniques.
This eco-friendly method enables the platform to handle parallel transactions, enhancing transaction speeds and reducing carbon emissions.
Read more: Toncoin Price Prediction as the TON Network Hits Important Milestone
Tron (TRX)
Tron (TRX) is the native cryptocurrency for the Tron network, which was developed by the Tron Foundation in 2017. Initially launched on Ethereum, TRX migrated to its native blockchain network a year after its debut.
Due to its delegated proof-of-stake (DPoS) consensus method, Tron’s carbon emissions are relatively minimal. As of July 1, 2022, Tron utilized around 162,868 kWh of electricity annually, leading to an estimated annual carbon footprint of about 69.47 tCO2e. The Tron DAO states that this is equivalent to approximately 11 roundtrip flights from San Francisco to Munich.
As such, this positions Tron as a more environmentally friendly coin than many other blockchain networks or cryptocurrencies.
Algorand (ALGO)
Algorand is a well-known environmentally friendly cryptocurrency. It was developed to enhance transaction speed and efficiency, addressing the slow transaction speeds of Bitcoin and various other blockchains.
Algorand also employs a Proof-of-Stake consensus mechanism called Pure Proof-of-Stake (PPoS). It claims it demands minimal energy even as the transaction volume rises, enabling it to remain sustainable during high network activity.
According to the Crypto Carbon Ratings Institute (CCRI) data from June 2024, the annualized CO2 emissions of the Algorand mainnet are 265 tCO2, which is roughly seven times lower than the annualized emissions from Ethereum’s PoS and 300,000 times less than Bitcoin’s emissions. This positions Algorand (ALGO) as one of the leading eco-friendly cryptos.
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