Green cryptocurrencies use significantly less energy than traditional cryptocurrencies or those that derive their power from renewable sources. Green cryptocurrencies can also operate on energy-efficient systems, such as those that abandon the Proof-of-Work mechanism in favour of Proof-of-Stake.
Due to the enormous carbon footprint of traditional cryptocurrencies, these decentralized finance systems have been criticized. Green cryptocurrencies are a response to this criticism.
Examples of green cryptocurrencies include:
- SolarCoin (SLR) - a cryptocurrency directly linked to verifiable investment in solar energy
- Cardano (ADA) - a cryptocurrency created by Ethereum co-founder Charles Choskinson. It is the first cryptocurrency in the world to be evaluated by academia. Compared to Bitcoin (7 transactions per second), Cardano allows 1000 transactions per second.
- Stellar (XLM) - a cryptocurrency created in 2014. The Stellar network does not charge a fee to users and institutions using it, so it is seen as a growing competitor to PayPal.