There have been many eyeballs on the top crypto in this digital and crypto era, eco-friendly. But, unfortunately, creating a cryptocurrency is very challenging, and it takes a lot of energy for computers to create one. However, this energy consumption in return is hazardous for our environment.
So, keeping this in mind, many companies and organizations are taking the initiative to build eco-friendly coins. This article will help you decide the top five best eco-friendly coins that you can mine.
Due to rising awareness of independence, there is a spike in crypto mining. So, not to be left behind, let us see what crypto mining and the top eco-coins are better to mine in 2021.
What is cryptocurrency?
A cryptocurrency is a virtual or a digital asset that is stored digitally and works as a medium. Individual coin proprietorship data are stored in a ledger using strong encryption, secure transaction records, controlling the creation of additional coins, and verifying transfer ownership of coins.
Technology on which the cryptocurrency works is called the blockchain. It is a decentralized technology that collects data in the form of blocks distributed among many computers. In addition, blockchain has tight security. So once the programmers deploy the data, it is nearly impossible to hack or manipulate it.
The first cryptocurrency was Bitcoin, and Satoshi Nakamoto made it. According to the coin market cap, there are 9890 coins worth $2.2 trillion.
Introduction to crypto mining
Crypto mining is a process of verifying a crypto transaction and adding it to the blockchain. When a user sends crypto to another user, the miners have to solve complex mathematical equations using their computers to validate that transaction.
For every new crypto mined, users who took part in the process get a fraction of it as a reward. Just for clarification, crypto mining here does not mean the creation of a new coin. Instead, it gets released from the total coin supply. When these coins are released, it creates demand because it makes them rare, just like gold.
Bitcoin is the first and most popular and well-established example of a mineable cryptocurrency. Bitcoin mining uses an algorithm called proof of work.
What is an eco-friendly coin?
There is a link between cryptocurrency and energy consumption due to its way of mining. The crypto-mining process has to go through complex computer calculations to validate a transaction. Therefore, for every successful transaction, the process relies on large amounts of electricity and energy consumption.
When mining a coin, it takes a lot of energy from coal or fuels that burn and emit carbon. This carbon dioxide leads to global warming and the imbalance of climate and ecosystem. Including focusing on renewable energy sources Bitcoin and ETH are some of the coins that use a large amount of electricity when mined. BTC uses 709 Kwh, and ETH uses 62.56 kWh energy per transaction.
Requirements of mining crypto
General system requirement for mining a cryptocurrency entirely depends on the mining mechanism and the technique. For example, if you want to mine Bitcoin, Litecoin, or Ethereum, which use a proof of work mechanism, your system requires a lot of GPU power.
So it is going to consume a lot of electricity too. Still, on the other hand, if you want to mine PeerCoin, BinanceCoin, which uses a proof of stake mechanism, then there is no need for GPU power because this mechanism is on virtual miners. So you don’t need too much electricity for this.
Why crypto mining is not so simple:
- It needs a lot of resources
- Crypto mining is expensive
- The ROI is not what it used to be
- Limitations due to geographical location
- Experience and knowledge required
The top crypto coins to mine in 2021
SolarCoin, as the name signifies, this coin uses the best renewable source of energy-solar energy. SolarCoin is a decentralized project with the idea of encouraging the generation of solar electricity.
You can take part in the mining process of SolarCoin or exchange it just like other cryptocurrencies but at the same time by contributing to the development of clean, renewable solar energy. Unlike Bitcoin that uses fossil fuel that emits head and carbon into the environment.
Just like Litecoin, SolarCoin is also script-based crypto but with a different approach. This project mints 1 SolarCoin for each megawatt-hour generated using solar technology. Currently, this network relies on users uploading documentation to prove energy generation, but it can be an automatic process soon.
BitGreen is another classic example of an eco-friendly coin. This coin was founded in 2017 to respond to Bitcoin’s impact on the environment. Blockchain’s governance protocol funds this project. This is a community-driven project and alternative to proof of work unity cryptocurrencies.
The maintenance of BitGreen is taken care of by a non-profitable foundation created by the company. In addition, BitGreen encourages eco-friendly actions, with users able to earn it as a reward.
BITG cannot be mined but can be earned by participating in volunteering, carpooling on a ride-hailing app, and other eco-friendly work. You can also earn the coin through the staking process.
ZCash is third on the list for a reason. Privacy-focused cryptocurrency, meaning the company that developed the coin, focuses mainly on privacy instead of security. As Zcash uses ASIC resistance, it makes it harder to mine this coin. But overall, this coin is different from many others in the market, making it valuable and worth mining.
This coin has an extensive organization by its side. BTT is the coin of the BitTorrent organization that was founded in 2004. Therefore, BTT has a perfect natural mechanism as it powers BitTorrent, i.e., file sharing.
The founder of TRON Foundation, Justin Sun, is the current CEO of BitTorrent, making BTT a TRC-10 token. In just a short term of seven months, this BTT has seen a significant rise in the price. So this has some real potential and can be a good mining opportunity with ease for long-term benefit.
This altcoin has gained fame in the digital market because of the meme. Dogecoin is designed in a way that it can add more coins to its supply each year, unlike Bitcoin. Therefore, this coin gives an added advantage of reliability to the miners.
Dogecoin consumes 0.13 kilowatt-hour per transaction, making it the 4th eco-friendly minable coin. To mine Dogecoin, first, make sure you have a Dogecoin wallet to store the mined coins. Also, the mining works better if done using CPU rather than GPU. To make it more productive, you can use a high-end graphics card.
Dogecoin has been on the radar of many traders due to its rising popularity and its eco-friendly approach. Therefore, it can be of a good return in the coming future.
Crypto mining is legal, and any individual can do it. But like every other instrument, crypto-mining too involves financial risk as you will have to invest min of thousands of dollars up to millions.
So it’s always advisable to know the industry and the risk involved before participating in it. Crypto can not only be gained by only mining but also through staking and rewards. As most people are looking for eco-friendly coins because it is safe for the environment, it is the right time to consider some of these eco-friendly coins.