Everything You Need to Know About Eco-Friendly Cryptocurrencies

Why Is Everyone Talking about the Environmental Impact of Cryptocurrencies?

When Elon Musk dropped his idea to accept Bitcoin (BTC) as payment for Tesla cars in March 2021, it made the world stand up and take note of the environmental influence of the blockchain industry as a whole. The mining process used by Bitcoin and other coins requires heavy energy supplies as it requires robust tools to run at full tilt to process transactions.

The level of computer processing power required leads to vast volumes of electricity used. That has led people to start thinking about the overall environmental impact.

How Do Cryptocurrencies Harm the Environment?

Sustainability is a crucial matter when talking about the future of cryptocurrencies. It has been flagged that some of the biggest cryptocurrencies today consume immense amounts of energy.

Mining is used to limit the spending of cryptocurrencies across the network. Miners validate the transactions and get new coins as a reward for their work. It is also known as the Proof of Work (PoW) mechanism that secures the network from external attacks.

Blockchain mining requires a lot of energy to validate transactions. Since server farms are growing in size while spreading across the network, environmentalists are concerned about its damage to the ecosystem.

However, with rapid developments in the crypto industry, a few alternative innovations solve this issue using less environmental energy.

Many of the influential players in the crypto market are dedicating time to review the sustainable future for cryptocurrencies. Spearheaded by Microstrategy CEO Michael Saylor, the Bitcoin Mining Council strives to promote energy usage transparency and stimulate sustainability in blockchain initiatives.

Proof of Stake as a Solution to Proof of Work

Some of the latest blockchains prefer to use a Proof of Stake (PoS) mechanism rather than Proof of Work. In Proof of Work, nodes are required to solve a puzzle in order to become a validator, which consumes a lot of energy.

In contrast, Proof of Stake is a consensus mechanism where users involved in Proof of Stake are validators, not miners. The validators need to stake their cryptocurrency to become a part of it. Thus, it reduces unnecessary competition between miners and saves energy.

Moreover, this helps blockchain work more efficiently, securing every transaction.

Green Cryptocurrency - The Ultimate Solution

Every time a transaction takes place, it is broadcast to every computer connected to the network, and this interconnected system verifies the transaction.

As mentioned before, the PoW mechanism consumes a lot of energy to validate the transactions. And such factors threaten the notion of blockchain as a long-term enterprise solution.

Fortunately, crypto experts have been working on the solution to this issue, and they've found it in the Proof of Stake mechanism. Proof of Stake mechanism has pioneered the foundation of new protocols such as EtherLite (ETL), Solana (SOL), and Cardano (ADA).

EtherLite (ETL) is a dark horse in the crypto world. It is a hard fork of the Ethereum network created to build an ecosystem for apps and businesses that are more efficient, less expensive, scalable, fast and reliable.

EtherLite kick-started its launch in July 2021, and since then, it has taken the crypto world by storm. It is now listed as one of the top enterprise blockchains in the market, bringing more scalability, security, and speed.

ETL works on a pure Proof of Stake mechanism that bypasses some of the major environmental issues faced by the previous systems. Being a native coin of Ethereum, EtherLite aims to bridge the gap for all enterprises wishing to avail themselves of decentralized apps.

Elite Cash (ELC) is efficient and innovative cash that works on the EtherLite blockchain. It aims to bring a revolution by making payment space faster, cheaper, and more secure.

What The Future Holds for Cryptocurrencies

Considering the environmental impact of blockchain technology has led to the latest innovation in the crypto world. It has encouraged networks like ETL to enable sustainable alternative technological solutions for digital currencies and companies wishing to work with digital assets.

As more and more developers start to use cryptocurrencies to integrate with blockchain technology, coins like EtherLite and Elite Cash are helping to overcome the environmental influence.

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This article does not constitute any financial advice, and all suggestions/recommendations in this post are for informational purposes only. Elite Cash does not bear any responsibility for your loss. Please consult your financial advisors before investing in cryptocurrencies.