Since it's inception, decentralized finance and cryptocurrencies have boomed into a nearly three trillion dollar market, with governments planning and forming crypto reserves, businesses accepting digital payments, and more and more crypto-ATMs popping up. It’s clear this isn’t just a fad, and whether we like it or not, crypto is here to stay.
But here’s the catch: this growth has a massive environmental footprint. Take Bitcoin, for example. By early 2025, Bitcoin's energy use could power 8.4 million homes, and it pumps out carbon emissions equal to 9 million cars, according to Digiconomist Bitcoin Energy Consumption. As a 23-year-old climate activist and digital creator, that truly terrifies me.
Like the subtitle suggests, I’m not big on capitalism or decentralized finance as a far-left climate activist. The idea of oligarchs driving this train doesn’t sit right with me, and for a long time kept me away from it. But today, I stand with a certain side of the crypto ecosystem. I want change, I want climate friendly technology. But banning it? That’s not happening. The financial stakes for the ruling class are way too high, very similar to why, despite our ability to transfer to green energy, we are still being groomed into and manufactured to be reliant fossil fuels. I will repeat, the millionaires and billionaires will NOT allow full bans on crypto, nor will they allow bills for climate responsibility/accountability.
So, instead of fighting a losing battle, I’m here to advocate for and promote sustainability within the crypto space. There are chains and projects out there that don’t just cut emissions but actively heal the planet. That’s where my focus is: low-emission coins and regenerative finance. It’s not about ditching crypto, it’s about making it work with the Earth, not against it.
Sustainable DeFi creates circular, inclusive and responsible economies and ecosystems. It puts our planet first, while still appealing to crypto investors and creators. ReFi is about using blockchain technology for ecological healing, not just profit. From carbon credit transparency to biodiversity funding, to rewarding solar energy production. These are tools for regeneration, not just extraction.
These are the parts of the Web3 future I want to help build. I don't want this technology to push us even further into a climate nightmare. We don’t need to turn our backs on Web3 and DeFi, hoping it goes away. We need to help greenify it. ReFi, climate-positive NFTs, impact DAOs, and ethical protocols are already proving it’s possible.
And as a final note before I begin, I think those interested in the web3 creator space should place focus on chains that have the world's best interest in mind, over compromising morals on chains that are trendy or heading the market. It is not impossible to both invest and create in crypto while caring for earth. Showing climate friendly chains have value and utility is the only way for them to be invested in and integrated in society over chains that are killing the planet.
Let’s start with Ethereum, which has seriously stepped up its game. Back in September 2022, the Ethereum network went through what they called “The Merge”, switching from proof-of-work (PoW) to proof-of-stake (PoS). This wasn’t just a tech upgrade, it slashed Ethereum’s energy use by over 99.988%, dropping its carbon footprint from 11,016,000 tonnes CO2e to a mere 870 tonnes a year, per the Ethereum Foundation's Ethereum Energy Consumption. It’s proof that big players can go green without losing their edge or community, setting a benchmark for others to follow.
Ethereum’s not alone. There’s a whole army of cryptocurrencies built with sustainability in mind, and I’ve been digging into them. Here’s the rundown:
- Tezos: Tezos uses proof-of-stake technology to keep its energy use way down. A study by the University of Cambridge found that Tezos consumes about 0.001 TWh per year, compared to Bitcoin’s 100 TWh. [Tezos]
- Hedera: Hedera’s a bit different. It uses something called hashgraph, which is designed to be fast and energy-efficient. According to their website, Hedera’s energy consumption is equivalent to that of a small data center, which is pretty impressive for a global network. [Hedera Sustainability]
- Algorand: And let’s not forget Algorand. They’re another proof-of-stake blockchain that’s making waves for their low energy use. In fact, they claim to be carbon-negative, meaning they offset more carbon than they produce. That’s a big deal in the crypto world, and it’s something I can definitely get behind. [Algorand Sustainability]
- XRP: Ripple’s XRP is a lightweight champ, using a consensus mechanism that’s 61,000 times more efficient than Bitcoin, sitting at 0.0079 kWh per transaction. They’re also carbon-neutral, thanks to renewable energy and carbon credits. [Ripple’s Sustainability Efforts]
- Chia: Chia’s a bit of a mixed bag. It uses proof-of-space and proof-of-time, so it doesn’t guzzle electricity like Bitcoin. You “farm” it with hard drives instead of mining with power-hungry rigs. [Chia’s Environmental Impact]
I thought this was a win, but there’s a catch. More on that later.
- Litecoin: A Bitcoin spin-off, Litecoin’s lighter on energy because it uses a less intensive PoW algorithm called Scrypt. It’s not as green as PoS coins, but it’s still a step up from its big brother. [Litecoin Energy Efficiency]
- Solana: Solana’s PoS system is crazy efficient: just 0.166 Wh per transaction, says the Crypto Carbon Ratings Institute. It’s fast, scalable, and doesn’t trash the planet. [Solana Energy Efficiency]
- Cardano: Dubbed the “green blockchain,” Cardano’s PoS setup cuts energy use big time, and as a plus, it funds eco-friendly projects. [Cardano’s Sustainability]
- Stellar: Stellar’s consensus protocol keeps energy low while pushing financial inclusion. They’ve been offsetting emissions since 2015 with carbon dioxide removal. [Stellar’s Sustainability]
- Nano: Nano's Open Representative Voting (ORV) system skips mining and staking, using energy equivalent to a single household. [Nano’s Energy Efficiency]
- IOTA: IOTA skips the blockchain entirely with its Tangle setup, making it extremely energy-efficient. It’s built for the Internet of Things (IoT) and even backs renewable energy projects. [IOTA and Sustainability]
These coins show that you don’t need to burn through resources to build a solid blockchain. They’re proof we can have blockchain technology and decentralized finance without the ocean-boiling-forest-burning guilt.
Now, let’s talk about regenerative finance (ReFi), because reducing harm isn’t enough. We need to fix what’s broken. These projects use blockchain to fund environmental healing, and I’m obsessed. Here’s what’s catching my eye:
- Energy Web Token (EWT): EWT powers the Energy Web ecosystem, letting people trade renewable energy assets. It’s all about decarbonizing energy, which is huge. [Energy Web]
- ARARA (Araracoin): ARARA takes transaction fees and token supply to fund wildlife conservation. It’s a steady cash flow for protecting species. [Araracoin]
- DOVU: Teaming up with KlimaDAO, DOVU tracks and offsets carbon footprints for Web3 stuff, verified on Hedera Hashgraph. It’s practical and transparent. [DOVU]
- Regen Network (RWN): RWN tracks regenerative projects like reforestation and soil health using blockchain technology. It’s about rewarding farmers and healers. [Regen Network]
- SolarCoin: A cryptocurrency that rewards solar energy producers. For every megawatt-hour of solar energy you generate, you get one SolarCoin. It’s a simple but effective way to incentivize renewable energy production and reduce our reliance on fossil fuels. [SolarCoin]
These projects flip the script. Crypto’s not just about cash, it can fund conservation, offset emissions, and rebuild ecosystems. That’s the kind of Web3 I want to build on.
Not everything’s rosy, though. Some “green” coins have hiccups. Take Chia, I was stoked about its low-energy farming, but it leans hard on hard drives. That spikes manufacturing demand, and only 6.3% of HDDs are recyclable, per the European Commission on E-Waste. So, it cuts energy but piles up waste. Not ideal.
This reminds me to stay skeptical and informed. Green labels don’t always mean green results. We’ve got to dig into the fine print and push for transparency.
Crypto’s at a tipping point. It could wreck the planet or help save it. By backing low-emission coins like Tezos, Hedera, and Nano, and ReFi projects like ARARA, SolarCoin and Regen Network, we can nudge it toward sustainability.
As a creator, I’m not here to chase hype or build my portfolio, I want to make art and build community on chains that match my values. Sustainable DeFi and ReFi aren’t flawless, but they’re progress. Let’s choose what heals, not what harms.
Crypto is no longer just speculation, it has become infrastructure. Web3 & DeFi is here to stay, for better or for worse. We can make it be for better.
: "Loved the blend of climate activism and tech insight here. I’d love to hear more about how Web3 projects can be made truly eco-friendly beyond just offsetting carbon footprints."
The article’s structured approach and clear thesis make complex concepts accessible, but additional data visualization might enhance reader engagement
Agreed, it's my first article so I was kinda winging it! Thank you for your input! I may edit it to add said visualization or do so moving forward!