Eco-friendly alternatives to BTC for Tesla
When Elon Musk told the crypto community that Tesla was looking for a “greener” alternative to Bitcoin, thousands of predictions appeared on social media. So let's think together about what eco-counterparts the main cryptocurrency on the market has.
Bitcoin electricity consumption is on medium measured at 700 kWh to process one transaction. Experts tell that its annual energy consumption exceeds that of the Netherlands, and its carbon footprint is almost similar to that of Singapore. But what cryptocurrencies could meet Musk's stated standard of 1% of Bitcoin's energy consumption in a single transaction?
Let's ditch the speculation that Tesla will use Ethereum as an alternative right away. Because prior to the transition to Proof-of-State and Ethereum 2.0, “switching” the automaker's attention to ETH will simply be pointless. In addition, the energy efficiency of the PoS algorithm is 99% superior to PoW, so from this point of view, Tesla is free to pick any PoS chain from ADA to SOL.
It may be a good choice for Tesla, since all tokens are initially mined, and transactions consume some 0.0079 kWh. In addition, Brad Garlinghouse is one of those who are the most active in expressing dissatisfaction with the excessive power consumption of Bitcoin.
It's similar to XRP in terms of issued tokens. The blockchain employs the SCP, which relies on the authentication of actions within the network. It needs several times less power than PoW and perfectly fits the concept of “greenness”.
A complete carbon-neutral option, according to its creators, working on the Proof-of-Stake consensus. Algorand is partnering with the ClimateTrade company which develops a CO2 platform that will enable firms to track and minimize their carbon footprints.
Elon Musk's favorite, who has become a real dark horse of the crypto market. The coin contains most of everything related to its mining on the Litecoin blockchain using PoW. But, at the same time, it is mined using Scrypt, not the SHA-256 algorithm. It is many times more energy-efficient and faster, albeit weak secure. LTC's power consumption is now estimated at 18,522 kWh, while a transaction involving DOGE requires only 0.12 kWh. Perhaps, for this reason, a little earlier, Musk created a poll on his Twitter, whether Tesla should start acquiring payments for electric cars in the equivalent of Dogecoin.