In 2022, the crypto industry witnessed a year when blockchains competed to be greener and more efficient. Here is the most eco-friendly blockchain networks.
Environmentally Eco-Friendly Blockchain Networks of the Year 2022
One of the biggest problems in the Eco-Friendly Blockchain Networks is the energy consumption problem. We can say that the demand for faster, more efficient and more environmentally friendly blockchains has led to this change. In 2022, many eco-friendly blockchain networks have made great strides to find solutions to these problems.
The most notable change of 2022 could arguably be the Ethereum Merge update. Ethereum’s transition from a Proof-of-Work system to a Proof-of-Stake instantly reduced the energy consumption of the Ethereum network by 99.9%. Recently, Ethereum Co-founder Vitalik Buterin expressed his ideas for the future of the crypto industry. With this update made by Ethereum, we witnessed the progress of the crypto industry.
Chia Network has switched its mining mechanism, which requires high-power GPUs and processors, to the proof-of-space-and-time protocol. The old system of the Chia Network used to consume high energy and required high-system processors. With the proof-of-space-and-time protocol adopted by Chia Network, users can mine Chia(XCH) tokens with low-end computers. It is also claimed that Chia Network uses about 0.12% of the energy used by the Bitcoin network.
The Algorand blockchain network has been built with a complete focus on the environment and has made great strides in this direction in the last 2 years. In 2021, Algorand partnered with ClimateTrade to help companies stabilize their carbon footprints. While Algorand uses the proof-of-stake mechanism, Bitcoin uses proof-of-work. Proof-of-work energy consumption is higher. For example, while 1,206.52 kilowatts of electricity is spent per hour for a bitcoin transaction, it is claimed that this transaction is 0.000008 kWh in Algorand.
Solana is a blockchain platform designed for dApp. Solana uses proof-of-stake(PoS) for transactions and is more environmentally friendly. While Bitcoin can perform 7 transactions per second, this number is 60,000 in Solana. The Solana network has been working to achieve the carbon-neutral target since its inception. While many blockchain projects use PoS to save energy, Solana supports this with proof-of-history.
Avalanche is a blockchain platform that addresses scalability, efficiency and security issues using a proof-of-stake mechanism. Avalanche was one of the most energy-efficient blockchains of 2022, using around 0.0005% of the amount of energy used by Bitcoin.