Algorand Carbon Neutral Footprint And Its Use Of Pure Proof of Stake (PPoS) Transaction Mechanism

Algorand Carbon Neutral Footprint And Its Use Of Pure Proof of Stake (PPoS) Transaction Mechanism

Algorand is on a mission to ensure our future in crypto and blockchain will be a very environmentally friendly one where our children and our world will live happily ever after. The creators of Algorand are working to make it the most greenest and energy-efficient platform. This in turn will result in a crypto-sustainable future for all.

Alogorand is a secure, scalable and efficient decentralized blockchain network that was invented to mitigate Bitcoin’s slow transaction times. It is based on a PURE PROOF OF STAKE™ blockchain protocol which is a mechanism that is specific to the Algorand blockchain. It is designed to speed up transactions and lower transactions fees, which ultimately lowers energy consumption during transactions. Algorand can be purchased from Coinbase, Binance, OKEx, Kraken and Huobi.

Sustainable And Energy-Efficient Crypto Research

Leading Crypto service comparison site Cryptowisser, recently announced its Crypto Carbon Footprint list (see list below). The list ranks how sustainable and energy efficient the top 100 cryptocurrencies are and is based on the research of a Swedish team of sustainability experts.

The list ranks each coin of how a typical transaction affects the environment through its carbon footprint. The list uses a color scheme to display different levels of energy efficiency and carbon footprint, with dark green being the cleanest by carbon neutral or negative, and medium green being equivalent to a VISA transaction.

“We are excited to release the world’s first comprehensive ranking of carbon footprints of Cryptos and we hope to give more clarity in the market regarding how green different cryptos are. Based on our research, we can also give a positive outlook for the sustainability of Crypto”

Richard Ramberg, CEO of Dgtl Assets Group AB

How Does Crypto Have a Carbon Footprint?

The carbon footprint of cryptocurrency is based on the energy consumption from the daily operations, for example the process of mining or running of nodes in combination with how clean the energy is. Miners powered by renewables or based in a clean electricity grid will have a significantly lower carbon footprint than if powered by fossil fuels.

How many Cryptocurrencies are carbon neutral or negative?

According to the list, 12 of the cryptocurrencies are self-defined as carbon neutral or negative with Algorand taking the top spot as the greenest cryptocurrency on the market.

The vast majority of the coins have been ranked in the Light Green category, which means that most of the top 100 cryptocurrencies do have a relatively low carbon footprint.

From the data found, there are only a minority of coins that have a high carbon footprint, a positive outlook for the sustainable future of crypto, further reinforced by the current trend of even greener cryptos.

How Does Proof of Stake or Proof of Work Affect Energy Consumption?

The energy consumption of the Cryptos depends primarily on the mechanism/consensus algorithm used for a block of transactions to be added to a Cryptocurrency’s digital ledger, so called blockchain, in combination with the energy efficiency of the equipment that is performing the algorithms.

The most common types are either Proof of Work (PoW) or Proof of Stake (PoS), while they have similarities, they differ in how they execute a transaction, where typically a Proof of Work transaction consumes about 1000 times the energy compared to a Proof of Stake transaction. As shown in the list, the coins associated with Proof of Stake occupy the top of the list being more carbon friendly, while most Proof of Work coins are less carbon friendly, but exceptions do exist.

Concluding Remarks

A carbon neutral or negative crypto world does not seem unachievable at all, even if the process of third party verification and “Proof of Green” need to accelerate. Most cryptocurrency transactions are similar to a VISA transaction in terms of carbon emissions; however, the two top cryptocurrencies (BTC and ETH) do have work to do to become more energy efficient and sustainable.

Algorand Ranks Top As 2022 Greenest Altcoin With Carbon Neutral Energy Consumption Level

NAME	TICKER	CARBON FOOTPRINT	SOURCE OF INFORMATION	CONSENSUS ALGORITHM
Algorand	ALGO	Dark Green	Carbon Negative (Self‑reported) Estimated Energy Usage	Pure Proof of Stake	GET COIN
Audius Token	AUDIO	Dark Green	Carbon Neutral (Self‑reported) Estimated Energy Usage	Proof of Stake	GET COIN
Avalanche Coin	AVAX	Dark Green	Carbon Neutral (Self‑reported) Estimated Carbon Footprint	Proof of Stake	GET COIN
Celo Coin	CELO	Dark Green	Carbon Negative (Self‑reported) Estimated Carbon Footprint	Proof of Stake / Byzantine Fault Tolerance	GET COIN
eGold Token	EGLD	Dark Green	Carbon Negative (Self‑reported) Estimated Carbon Footprint	Secure Proof of Stake	GET COIN
The Sandbox Token	SAND	Dark Green	Carbon Negative (Self‑reported) Estimated Carbon Footprint	Proof of Stake	GET COIN
WAX Coin	WAXP	Dark Green	Carbon Negative (Self‑reported) Estimated Carbon Footprint	Delegated Proof of Stake	GET COIN
Immutable X Token	IMX	Dark Green	Carbon Negative (Self‑reported) Estimated Carbon Footprint	ZK-Rollup (Validity Based Proof)	GET COIN
Solana Coin	SOL	Dark Green	Carbon Neutral (Self‑reported) Estimated Energy Usage	Hybrid Proof of Stake	GET COIN
Hedera Hashgraph Coin	HBAR	Dark Green	Carbon Negative (Self‑reported) Estimated Carbon Footprint	Hashgraph Consensus	GET COIN
EOS Token	EOS	Dark Green	Carbon Negative (Self‑reported) Estimated Carbon Footprint	Delegated Proof of Stake	GET COIN
NEAR Protocol Coin	NEAR	Dark Green	Carbon Negative (Self‑reported) Estimated Carbon Footprint	Thresholded Proof of Stake	GET COIN
Tezos	XTZ	Medium Green	Estimated Carbon Footprint	Proof of Stake	GET COIN
VeChain Token	VET	Medium Green	Estimated Energy Usage	Proof of Authority 2.0	GET COIN
Fantom Token	FTM	Medium Green	Estimated Energy Usage	Fantom Opera	GET COIN
Stellar	XLM	Medium Green	Estimated Energy Usage	Stellar Consensus Protocol	GET COIN
MIOTA	IOTA	Medium Green	Estimated Energy Usage	Directed Acyclic Graphs	GET COIN
Holo Token	HOT	Medium Green	Estimated Energy Usage	Distributed Hash Table	GET COIN
XRP	XRP	Medium Green	Estimated Energy Usage	XRP Ledger Consensus Protocol	GET COIN
Polygon Token	MATIC	Medium Green	Estimated Energy Usage	Proof of Stake	GET COIN
1inch Token	1INCH	Light Green	Consensus Algorithm	Proof of Stake	GET COIN
Amp Token	AMP	Light Green	Consensus Algorithm	Proof of Stake	GET COIN
Ankr Network Token	ANKR	Light Green	Consensus Algorithm	Proof of Service Level, Proof of Stake, Byzantine Fault Tolerance	GET COIN
Binance Coin	BNB	Light Green	Consensus Algorithm	Proof of Staked Authority	GET COIN
Bitcoin BEP2	BTCB	Light Green	Consensus Algorithm	Delegated Proof of Stake and Practical Byzantine Fault Tolerance	GET COIN
BitTorrent Token	BTT	Light Green	Consensus Algorithm	Proof of Stake	GET COIN
ChainLink Coin	LINK	Light Green	Consensus Algorithm	Proof of Stake	GET COIN
Chiliz Token	CHZ	Light Green	Consensus Algorithm	Proof of Authority	GET COIN
Cosmos Coin	ATOM	Light Green	Consensus Algorithm	Proof of Stake	GET COIN
Cronos Token	CRO	Light Green	Consensus Algorithm	Proof of Stake	GET COIN
Dai	DAI	Light Green	Consensus Algorithm	POSDAO Proof of Stake	GET COIN
Filecoin	FIL	Light Green	Consensus Algorithm	Proof of Storage	GET COIN
Flow Coin	FLOW	Light Green	Consensus Algorithm	Proof of Stake	GET COIN
FTX Token	FTT	Light Green	Consensus Algorithm	Proof of Stake	GET COIN
Harmony Coin	ONE	Light Green	Consensus Algorithm	Proof of Stake	GET COIN
Icon	ICX	Light Green	Consensus Algorithm	Delegated Proof of Stake / Byzantine Fault Tolerance	GET COIN
Internet Computer Coin	ICP	Light Green	Estimated Carbon Footprint	Internet Computer Protocol	GET COIN
IoTeX Token	IOTX	Light Green	Consensus Algorithm	Roll-Delegated Proof of Stake	GET COIN
Kadena Token	KDA	Light Green	Estimated Energy Usage	Proof of Work	GET COIN
Klaytn Coin	KLAY	Light Green	Consensus Algorithm	Proof of Stake	GET COIN
KuCoin Shares	KCS	Light Green	Consensus Algorithm	Proof of Stake	GET COIN
Kusama Coin	KSM	Light Green	Consensus Algorithm	Nominated Proof of Stake	GET COIN
Livepeer Token	LPT	Light Green	Consensus Algorithm	Delegated Proof of Stake	GET COIN
Loopring	LRC	Light Green	Consensus Algorithm	Ring Miners / Proof of Stake	GET COIN
Mina Coin	MINA	Light Green	Consensus Algorithm	Proof of Stake (Ouroboros Samasika)	GET COIN
Monero Coin	XMR	Light Green	Estimated Energy Usage	Proof of Work	GET COIN
NEO Token	NEO	Light Green	Consensus Algorithm	Proof of Stake (Practical Byzantine Fault Tolerance)	GET COIN
Oasis Network Coin	ROSE	Light Green	Consensus Algorithm	Proof of Stake	GET COIN
OKB Token	OKB	Light Green	Consensus Algorithm	Delegated Proof of Stake	GET COIN
OmiseGO Coin	OMG	Light Green	Consensus Algorithm	Proof of Authority	GET COIN
PancakeSwap Token	CAKE	Light Green	Consensus Algorithm	Proof of Staked Authority	GET COIN
Qtum Coin	QTUM	Light Green	Consensus Algorithm	Proof of Stake	GET COIN
Terra Coin	LUNA	Light Green	Consensus Algorithm	Proof of Stake	GET COIN
TerraUSD	UST	Light Green	Consensus Algorithm	Proof of Stake	GET COIN
Theta Fuel Coin	TFUEL	Light Green	Consensus Algorithm	Proof of Stake	GET COIN
Theta Token	THETA	Light Green	Consensus Algorithm	Proof of Stake	GET COIN
THORChain Token	RUNE	Light Green	Consensus Algorithm	Proof of Stake	GET COIN
UNUS SED LEO	LEO	Light Green	Consensus Algorithm	Proof of Stake	GET COIN
Waves Coin	WAVES	Light Green	Consensus Algorithm	Leased Proof of Stake	GET COIN
Wrapped Bitcoin	WBTC	Light Green	Consensus Algorithm	Proof of Authority	GET COIN
Dogecoin	DOGE	Light Green	Estimated Energy Usage	Proof of Work	GET COIN
Polkadot Coin	DOT	Light Green	Consensus Algorithm	Nominated Proof of Stake (Ouroboros)	GET COIN
Cardano Coin	ADA	Light Green	Estimated Energy Usage	Proof of Stake (Ouroboros Praos Version)	GET COIN
TRON Coin	TRX	Light Green	Consensus Algorithm	Delegated Proof of Stake	GET COIN
Axie Infinity Token	AXS	Beige	Consensus Algorithm	Proof of Work	GET COIN
Basic Attention Token	BAT	Beige	Consensus Algorithm	Proof of Work	GET COIN
Bitcoin Cash SV	BSV	Beige	Consensus Algorithm	Proof of Work	GET COIN
Compound Coin	COMP	Beige	Consensus Algorithm	Proof of Work	GET COIN
Curve DAO Token	CRV	Beige	Consensus Algorithm	Proof of Work	GET COIN
Dash	DASH	Beige	Consensus Algorithm	Proof of Work	GET COIN
Decentraland Token	MANA	Beige	Consensus Algorithm	Proof of Work	GET COIN
eCash Coin	XEC	Beige	Consensus Algorithm	Proof of Work	GET COIN
Enjin Coin	ENJ	Beige	Consensus Algorithm	Proof of Work	GET COIN
Horizen Coin	ZEN	Beige	Consensus Algorithm	Proof of Work	GET COIN
Huobi Token	HT	Beige	Consensus Algorithm	Proof of Work	GET COIN
Maker	MKR	Beige	Consensus Algorithm	Proof of Work	GET COIN
NEM Coin	XEM	Beige	Consensus Algorithm	Proof of Importance	GET COIN
Nexo	NEXO	Beige	Consensus Algorithm	Proof of Work	GET COIN
Quant Token	QNT	Beige	Consensus Algorithm	Proof of Work	GET COIN
Ravencoin	RVN	Beige	Consensus Algorithm	KAWPOW (Proof of Work)	GET COIN
Shiba Inu Token	SHIB	Beige	Consensus Algorithm	Proof of Work	GET COIN
Siacoin	SC	Beige	Consensus Algorithm	Proof of Work	GET COIN
Voyager Token	VGX	Beige	Consensus Algorithm	Proof of Work	GET COIN
Zcash Coin	ZEC	Beige	Consensus Algorithm	Proof of Work	GET COIN
Litecoin	LTC	Beige	Estimated Energy Usage	Scrypt Proof of Work	GET COIN
Bitcoin Cash	BCH	Beige	Estimated Energy Usage	SHA256-Based Proof-of-Work	GET COIN
Ethereum	ETH	Beige	Estimated Energy Usage	Proof of Work	GET COIN
Bitcoin	BTC	Brown	Estimated Energy Usage	Proof of Work	GET COIN
Aave	AAVE	N/A		Proof of Work	GET COIN
Arweave Coin	AR	N/A		Proof of Access	GET COIN
Binance USD	BUSD	N/A		Proof of Staked Authority	GET COIN
Decred Coin	DCR	N/A		Proof of Activity	GET COIN
Gala Token	GALA	N/A		Triple Proof Node System	GET COIN
Helium Coin	HNT	N/A		Proof of Coverage	GET COIN
Stacks Coin	STX	N/A		Proof of Transfer	GET COIN
Tether	USDT	N/A		Proof of Reserves	GET COIN
The Graph Token	GRT	N/A		Proof of Indexing	GET COIN
TrueUSD	TUSD	N/A		Proof of Work	GET COIN
Uniswap Token	UNI	N/A		Proof of Stake	GET COIN
USD Coin	USDC	N/A		Proof of Work	GET COIN

Details of The Sustainability Color Grades

The cryptos in the Crypto Carbon Footprint list can receive five different marks where Dark Green is the most environmentally friendly and brown is the least environmentally friendly. These are the classification criteria:

Color Grade	Description	Energy Consumption per Transaction (kWh/transaction)	Carbon Footprint per Transaction (kg CO₂e/transaction)*	Comments
Dark Green	Very high energy efficiency Very low carbon footprint Verifiable carbon neutral or negative	< 0.01 kWh / transaction	≤ 0 kg C0₂e / transaction	Defined as carbon neutral or negative. Currently self-reported. Will require verification at later stage to obtain Dark Green.
Medium Green	Very high energy efficiency Very low carbon footprint	< 0.01 kWh / transaction	< 0.00475 kg C0₂e / transaction	As, or more, energy efficient than a VISA transaction, Google Search and a regular email without attachment.
Light Green	High energy efficiency Low carbon footprint	≥ 0.01 kWH / transaction < 1 kWh / transaction	≥ 0.00475 kg CO₂e / transaction < 0.475 kg CO₂e / transaction	As, or more, energy efficient than an email with a large attachment.
Beige	Low energy efficiency High carbon footprint	≥ 1 kWh / transaction < 100 kWh / transaction	≥ 0.475 kg CO₂e / transaction < 47.5 kg CO₂e / transaction	50kWh is similar to the daily carbon footprint of a 150 sqm villa in a Northern Climate.
Brown	Very low energy efficiency Very high carbon footprint	≥ 100 kWh / transaction	≥ 47.5 kg C0₂e / transaction	Similar to the carbon footprint of a commercial plane flying for 1-2 hours.
*Based on IEA 2019 global emission factor for 1 kWh.

Find out more about the list and grading here.

This article is for informational purposes only. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. SafemoonPanda.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

List Credits: Cryptowisser

Image Credits: Shutterstock, Pixabay, Wiki Commons

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Algorand Carbon Neutral Footprint And Its Use Of Pure Proof of Stake (PPoS) Transaction Mechanism