AI Products 

A Guide to Eco-Friendly Crypto Development

Anant Yadav
A Guide to Eco-Friendly Crypto Development

Amidst concerns over the environmental impact of cryptos, it's time to go for eco-friendly crypto development.

The crypto landscape is continuously developing and growing as more and more cryptos are entering the crypto market. However, many environmental experts are concerned about sustainability regarding cryptos as several blockchains consume high energy and negatively impact the environment. Eco-friendly cryptocurrency development is a step towards a green digital economy. Now, businesses can opt for a cryptocurrency development company to develop eco-friendly cryptos. This article gives you an overview of these cryptos.

Energy Consumption in Traditional Crypto Mining

In a blockchain, a network of nodes stores all the crypto data. Many distributed ledgers use proof-of-work (PoW) consensus to add transactions to a block. This data validation process requires high-powered computers to solve cryptic problems or mathematical equations.

Bitcoin is the largest cryptocurrency that uses this type of consensus. Currently, this cryptocurrency consumes around 100 terawatt-hours (TWh) of electricity, comparable to Kazakhstan's power consumption. Many reports, including Digiconomist's Bitcoin Energy Consumption Index, have confirmed these increasing figures.

Bitcoin uses an inefficient consensus mechanism called proof-of-work (PoW) to verify transactions.In this protocol, nodes employ sophisticated computing systems to engage in cryptocurrency mining, solving intricate mathematical equations in the process.

 The complexity of these equations increases with each transaction. Consequently, computers require more energy and power to solve problems to get rewards.

It is not only the case with Bitcoin but with several other cryptocurrencies. Crypto mining is energy-intensive, so we must find greener alternatives.

Check It Out | Exploring Crypto Arbitrage Trading Bot and Development

A Shift Toward a Greener Cryptocurrency Industry

Many existing blockchains are shifting towards green alternatives due to environmental concerns. They are exploring less energy-intensive validation systems and renewable energy-based mining. One such sustainable cryptocurrency project is eco-friendly crypto.

These cryptos are emerging to address the issue of Bitcoin and other cryptos by providing a solution for sustainability. They utilize alternative mechanisms designed to reduce the environmental impact of the blockchain.

Eco-friendly Crypto Development

Eco-friendly cryptos are digital currencies that utilize various methods to become carbon neutral and focus on energy efficiency. These types of cryptocurrencies often use proof-of-stake (PoS) instead of PoW. They are going beyond using PoS to minimize carbon emissions.

Eco-friendly cryptos tend to leave a low carbon footprint with better infrastructure. Typically, the Bitcoin network has 50,000 computers to power a nano network leading to a high carbon footprint. Environmentally conscious cryptocurrencies achieve the same level of energy generation with only a few hundred advanced machines.

Suggested Read | ChatGPT and Crypto: Fuelling a New Era of Endless Possibilities

Some Alternative Ways to Traditional Crypto Mining

Although eco-friendly cryptos are not 100% green, they give us some viable approaches to fight climate change. We have curated the following key solutions of eco-friendly cryptos having the potential to make the crypto landscape environmentally friendly:

Less Energy Consuming Consensus Algorithms

By now you have known that cryptocurrencies employing the PoW protocol have high energy needs. So, eco-friendly cryptos utilize greener alternatives to this consensus mechanism. Proof-of-stake (PoS) is one such alternative.

PoS has a different approach to validating new transactions. It employs the staking method wherein network participants stake their cryptos to become validators, who verify new transactions. This consensus does use massive computations for transaction verification and requires less energy than PoW.

Proof-of-capacity (PoC) or proof of space is another consensus mechanism having a low energy consumption model. Here, miners exchange their disk spaces for cryptos. PoC utilizes free memory size to validate blocks.

Other sustainable consensus protocols include proof of ethic (PoE), proof of authority (PoA), proof of history (PoH), and more.

Explore More | How to Decide a Suitable Blockchain Consensus Algorithm


Eco-mining enables crypto mining in such a way that ensures systematic development and environmental protection. Eco-friendly cryptos use eco-mining to limit negative climate impact. This approach uses renewable energies to power crypto projects instead of non-renewable ones.

Carbon Credits

Carbon credits are a measurable and transparent approach for firms to promote environmentally friendly projects, including protecting irreversible natural carbon sinks. It is another solution that can promote green crypto mining. Crypto miners can buy and retire carbon credits to reduce their carbon footprint, increasing the sustainability of crypto mining.

Also, Visit | Why Develop an Over-The-Counter (OTC) Crypto Trading Desk

Examples of Eco-friendly Crypto

Raising concerns about the negative impact of crypto mining on the environment has led many crypto firms to switch to greener alternatives. Some of these decentralized networks use renewable energy in their working models while others have shifted to alternative consensus mechanisms.

Here is a list of some eco-friendly cryptos:


Ether is among the latest eco-friendly crypto list. Ethereum changed its consensus algorithm from PoW to PoS with its merge upgrade. Consequently, the network has reduced energy consumption and carbon footprint by approximately 99.99%.

Also, Visit | How will Ethereum 2.0 Cut off Energy Consumption


SolarCoin is an eco-friendly crypto that supports real-world environmental activities. Its founders distribute the token as a reward for solar installations. When a SolarCoin price surpasses energy generation cost, the crypto becomes free.


Ecoterra tokens track climate-positive activities and transform them into accomplishments. After reaching a certain target, these accomplishments will be converted into non-fungible tokens (NFTs).


Hedera uses hash graph consensus that promotes sustainability. The system of this crypto eliminates progression via an entire blockchain. Instead, it relies on the note-comparing protocol.

Also, Check  | Deploying a Smart Contract on Hedera Hashgraph Network with Java


With more advancements in digital finance, we will witness more eco-friendly cryptos. Businesses must switch to these cryptos for sustainable growth.

If you want to develop your eco-friendly cryptos, then Oodles can assist you. Our blockchain developers can help you create environment-friendly solutions. 

Anant Yadav
Zupyak is the world’s largest content marketing community, with over 400 000 members and 3 million articles. Explore and get your content discovered.
Read more