The Era of Green Crypto Coins: A Brief Introduction
Due to the increasing concern and criticism, developers have tried to, and have been successful in developing Green coins.
While thinking about cryptocurrency, the first thing that comes to our mind is paperless money. Although generally viewed as a virtual concept it is, ironically, often supported by bulky hardware that consumes insane amounts of energy. Numerous reports have studied the effects of crypto-mining on the environment and all of them are of the same vein — despite being paperless, crypto-mining is not helping the environment in any way. Rather, it’s doing the opposite.
Due to the increasing concern and criticism, developers have tried to, and have been successful in developing Green coins. As eco-friendly alternatives to Proof-of-Work (PoW) based coins, these have captured the industry’s attention for all the right reasons. While solving the issue of energy efficiency related to the PoW consensus mechanism, it has benefits that make it a compelling use case for the eco-conscious crypto community.
What are Green Coins or non PoW based consensus ?
Simply put, green coins are cryptocurrencies built on PoS or DPoS consensus mechanisms. As opposed to the PoW mechanism, Proof-of-Stake (PoS) and the more recently developed Delegated-Proof-of-Stake (DPoS) consensus consumes significantly lesser amounts of energy.
The initial steps have been taken by multiple developers to make the shift. Ethereum, for example, has set the ball rolling for an Ethereum 2.0 with a proposed PoS implementation, instead of the formerly used PoW consensus. One of the many reasons green coins have increased adoption of crypto-based technology is because it appeals to the audience that formerly avoided the technology due to its high energy consumption. Furthermore, a DPoS mechanism magnifies scalability by a large percentage — shooting up from a <20 TPS to ≥2000 TPS.
To learn in-depth about the environmental impact of PoW and how PoS resolves this issue, read reference article: The Environmental Impact: Cryptocurrency Mining vs. XDPoS Consensus.
Further, to acquaint yourself with the ‘Top 5 Green Coins’, read this article: GOING GREEN: 5 Crypto Coins for the Eco-Conscious Community.
XDC by XinFin Network: An All-Rounder
XinFin Digital Contract or XDC — the XinFin network’s native crypto — is a one-stop solution that combines speed, scalability, and sustainability into an immaculate package. XDC is built on XinFin’s exclusive consensus mechanism — the XinFin Delegated Proof-of-Stake or XDPoS protocol that was specially developed to overcome the shortcomings of the technology that came before it.
Apart from operating on an algorithm that was specifically made to reduce the carbon footprint, XDC is planning to be powered by alternative sources of energy like tidal, wind turbines, solar panels and bio-energy.
For more details about the XDPoS protocol and how it mitigates PoW-related global warming, read this article: XinFin’s XDPoS Protocol Solves the Possible Global Warming Problem Due to PoW Based Bitcoin & Ethereum Mining.
What Lies Ahead
The stage is set for green coins to take over. The world is battling climate change, industries are switching to renewable energy, green coins are on the cusp of something big, and XDC is at the forefront of the campaign. By using green coins, cryptocurrency users are positioned to give the environment some much-needed breathing space and release it from the choke-hold of resource-intensive mining.
In this way, XDC is exactly what the industry needs to emulate: an ecosystem that highlights the importance of establishing an equal give-and-take process with the environment.
For a detailed exposition of why XDC is the ideal Green Coin, read our article: XDC: The ideal coin for Green Energy and the Renewables Sector.
Finally, to stay updated about XinFin’s green endeavors, join our widening community on Telegram.