Can Crypto Casinos Be An Eco-Friendly Option?
As eco-friendliness is increasingly debated across all spheres of life, even crypto casinos aren’t left out of the discussion.
The fact is that crypto casinos are friendlier to the environment than regular land casinos by default, simply because they are online. You don’t need to travel, eat, and sleep someplace else. You can remain at home and play, which reduces your carbon footprint.
And, casino reviewers remark that crypto gambling sites are safer than ever. Sites like https://casinosblockchain.io/ recommend secure crypto casinos that accept Bitcoin, Ethereum, USD Coin, Solana, Ripple, Cardano – the list goes on.
However, many cryptocurrencies, most notably BTC and ETH, have been criticized for their adverse environmental effects. BTC mining and its proof-of-work system require significant computing power, resulting in high electricity expenses.
For instance, it takes about 1,450 kWh of energy to mine one Bitcoin, equivalent to 13 years of electricity consumption for the average US household. This same electricity is mainly derived from coal mining, which has harmful effects on the environment.
How Can Crypto Casinos Be Eco-Friendly?
For everyone to benefit from greener crypto casinos, the cryptocurrencies themselves need to become more eco-friendly. This is precisely what Ethereum – the 2nd most popular crypto – recently accomplished.
ETH switched from a proof-of-work to a proof-of-stake system. This system requires minimal energy expenditure. Ethereum transactions no longer rely on heavy computing power. That’s because proof-of-stake transactions are verified by people with staked ETH.
But, proof of stake isn’t the only path to eco-friendlier cryptocurrencies. Certain cryptos have come up with innovative ways of sustainability that ensure minimal impact on the environment. As you read on, we’ll cover some of these cryptos and the approach they’ve taken.
The Most Sustainable Cryptocurrencies
These are some of the most eco-friendly cryptocurrencies out there. Although most of them aren’t remotely close in value compared to ETH or BTC, they introduce novel ideas that may become the norm in the future.
SolarCoin – SLR
SolarCoin is the ultimate form of sustainability in cryptos. One SolarCoin is generated for one MWh (Megawatt hour) of solar energy produced by the “miner.”
Anyone can participate in the creation of SolarCoins, but you’ll need a unique electronic wallet to receive your coins.
The downside is that the verification process isn’t automatic, since you must provide documentation to verify your claims about the solar energy you generate. This documentation is received and reviewed by the SolarCoin Foundation.
The good news is that you can provide proof and receive SolarCoins retroactively – for all solar power you’ve generated in the past five years.
Cardano – ADA
Cardano is a well-known altcoin, accepted at many crypto casinos, that was introduced by one of the co-founders of Ethereum – Charles Hoskinson – as the world’s first peer-reviewed crypto.
Cardano uses a proof-of-stake system named Ouroboros. It is fundamentally more eco-friendly because of the proof-of-stake system, which also lets it perform about 1000 transactions per second. In contrast, the Bitcoin network only allows up to 7 transactions per second.
Cardano primarily saves energy by requiring users to buy tokens to join the network rather than mine them.
Chia coins use proof-of-space instead of proof-of-work in the mining process. How so? This coin relies on computer hard drives (HDD) for farming and creating “plots.”
Because of this, Chia is far less intensive on electricity usage than Bitcoins, which rely on high-powered rigs packed with graphics cards. The proof-of-space system makes farming Chia coins more accessible to everyone since it has a minimal barrier to entry.
The Future of Crypto Sustainability
Reducing crypto’s carbon footprint is essential to the industry’s safe and sustainable growth in the future. As the most prominent cryptocurrency, Bitcoin is the biggest offender because of its proof-of-work system. The BTC network consumes as much electricity as entire countries, such as Norway and Sweden.
Switching to a proof-of-stake system can reduce energy consumption by a staggering 99%. Ethereum already went down this road, and many existing and new cryptos rely on proof-of-stake already.
The downside of proof-of-stake systems is that users must buy in to get a chance to win subsequently-generated coins, hence the “stake” in “proof-of-stake.” Moreover, there is an element of randomness involved, which naturally raises concerns with many people.
Overall, the positives of eco-friendly cryptocurrency technology far outweigh any of its downsides. Compared to proof-of-work cryptos like BTC, proof-of-stake (PoS) reduces electricity consumption by up to 99%.
PoS is not the perfect system, but when we sum it all up, it’s far more sustainable and future-proof. The debate isn’t restricted to proof-of-work vs. proof-of-stake only. For instance, Chia coins rely on proof of space, offering an excellent middle ground. Then we have SolarCoins, which are only generated when someone provides legitimate evidence that they’ve generated a certain amount of solar energy.
We look forward to the growth of sustainable, eco-friendly cryptocurrency. As the world’s collective consciousness continuously shifts to higher eco-awareness, it’s only logical that cryptos with a greener approach should increase in value.
This article has been published in accordance with Socialnomics’ disclosure policy.