From the annoying chip shortage to power outages all over the world, crypto mining is a thing of the past. Considering the power consumption, regulations will definitely come for gas guzzlers. In that regard, if there is a way forward for cryptocurrencies, it would be the green road of proof of stake. In the long run Bitcoin and Ethereum mining can very well become illegal as we’re already facing a huge energy crisis. With that in mind, we have gathered a list of top energy efficient blockchains which are also solid choices for investment in 2022. Basically, these energy efficient blockchains are ranked based on their power consumption in 2021.
Future is Green
Before we proceed, let’s address the hall of shame including Bitcoin and Ethereum as the first and second worst blockchains in terms of power consumption. With 89,780,000,000 kWh each year while Ethereum consumes 17,300,000,000 kWh. To put that in perspective, an average US household consumes an average of 10,600 kWh.
Objectively, that kind of power consumption is too high to be able to dethrone fiat anytime soon. Of Course, the primary argument or BTC power consumption is that the network is designed to use excess electricity from power grids or green energy. But at the end of the day, mining companies are printing money like crazy and do not care for power consumption. The only way forward, is to invest in energy efficient blockchains since upcoming regulations can seriously harm the old ones.
Furthermore, the proof of work algorithm is also slow and archaic compared with PoS. Proof of Stake handles a lot more transactions per second while using a lot less energy. But that is a topic for another day.
Without Further a do, here are the most energy efficient blockchain networks right now:
For the first spot, we have Polkadot network with only 70,237 kWh yearly consumption. This amount is only 6.6 times higher than the average US household.
And here we have yet another third generation blockchain network found by a previous Ethereum member. Initially, Gavin James Wood had a different vision in mind about the (PoS) algorithm. The final goal is to create an infrastructure to create a network of blockchains that are effortlessly communicating with each other.
The multiple blockchain approach provides a better cross-chain interoperability and easier communication. Gavin believes that a single blockchain network can never be complete and a multi-chain architecture will be much more efficient.
The DOT is the token for this multi-chain network. It is currently number 9 by market cap. With the first ICO in 2017, it managed to raise $145 million. Despite being relatively new, it has experienced a huge growth in popularity. DOT has had one of the most successful initial coin offerings in history, raising over 200 million in two ICOs, first one in 2017 and the other in 2020.
To learn everything about the network, continue reading “What is Polkadot“
You can buy DOT on HiExchange with the lowest exchange fees.
Standing behind Polkadot, the Avalanche network consumes $489,311 kWh in a year. While this number is considerably higher than Polkadot, it is still an impressive figure.
Avalanche Blockchain, is an open, programmable smart contracts platform for decentralized applications. It was launched by AVA labs in 2020 as an Ethereum competitor. In terms of performance, the network offers light-speed transactions with scalability that is far better than Ethereum. As for the cherry on top, the transaction fees on the network are extremely low as compared with Ethereum.
At the same time, compared with the Solana network, the Avalanche network is far more decentralized. This will assure security and reliability for the future to come.
AVAX is the native token of the network and is currently 11th in the ranks. With an impressive $25.3 billion, it is continuing to close the gap with Ethereum.
You can Buy AVAX on HiExchange with no KYC.
And the Bronze goes to Algorand with 512,670 kWh yearly consumption. ALGO has been defying expectations in the past year and is expected to shine in 2022.
Officially launched in 2019, Algorand is a proof of stake blockchain network with great emphasis on scalability and speed. As on open-source and decentralized network, Algorand is not a new idea to begin with. However, where it proves to be different is the unique design that allows for faster consensus. With a two-tiered structure, this payment-focused network achieves amazing scalability.
Currently, Algorand network can process over 1000 transactions per second while transaction finality takes less than five seconds. At this point you might say that there are faster networks out there. Well, yes but actually no!
We’ve previously talked about the blockchain trilemma on this blog. Essentially, it is difficult and rare for a blockchain to offer security, speed and decentralization. For example, Solana network is one of the fastest ones out there but it is not that decentralized. In that regard, Algorand is maintaining all positive aspects of an ideal blockchain at once.
ALGO is the native token of the network and is currently ranked 23rd with a market cap of over $8.5 billion.
Buy ALGO on HiExchange anonymously.
The Cardano network is essentially the founder of proof of stake. Considering the massive number of transactions, Cardano has consumed 598,755 kWh last year which is stellar.
The Cardano project launched in 2017. It was the third generation of blockchain networks. One that successfully dealt with some of the greatest challenges of previous generations. Issues such as high gas fees and scalability by introducing the Ouroboros, a proof of stake algorithm to mine blocks which will be further explained in the article.
In 2017, the Cardano project started as a third-gen open-source and public blockchain platform. ADA is the native token of the platform. It is Led by Charles Hoskinson, one of the co-founders of Ethereum. Cardano had a great emphasis on being future-proof by being peer-reviewed and methodically developed by academic experts in the field. Cardano views itself as the updated version of Ethereum. Moving towards building a connected and decentralized system and providing banking services to the unbanked.
Buy ADA instantly and hassle free on HiExchange.
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