How do different types of crypto-currencies compare in their environmental impact?

Different types of crypto-currencies have different environmental impacts. Bitcoin, for example, is notorious for its high energy consumption due to its proof-of-work consensus algorithm that requires miners to solve complex mathematical equations. This energy consumption leads to a large carbon footprint as most of the energy used comes from burning fossil fuels. In contrast, crypto-currencies such as Stellar and Ripple have much lower energy consumption as they use a different consensus mechanism called the Federated Byzantine Agreement. Other newer crypto-currencies are designed to be environmentally friendly from the start, such as Chia, which uses a proof-of-space-and-time model instead of proof-of-work. Overall, it is important to consider the environmental impact of crypto-currencies when making investing or mining decisions.

This mind map was published on 25 June 2023 and has been viewed 101 times.