A turn to green Blockchain to reduce global carbon footprint

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  • Bitcoin uses 0.82% of the world’s energy, while Ethereum uses 0.34%.
  • Investors have documented that 94% of GenZs and younger millennials have flooded most decentralized networks contributing significantly to the volatile price fluctuations.
  • The XDC network is the first Green blockchain network within the crypto market.

Within the past few years, Blockchain applications have steadily increased. To realize the vision of a global Web3 network, it should accommodate most industries to ensure its flexibility and scalability. As a result, blockchain developers have dedicated their efforts to implementing decentralized networks in different sectors.

In Africa, developers have utilized this technology in agriculture, finance, medical centres, education, etc. Despite its flexibility, one core issue has significantly opposed the widespread adoption of blockchain technology; high carbon footprint. Currently, blockchain holds a poor reputation among eco-friendly organizations due to the high power consumption it requires. Crypto energy levels have shocked masses and even resulted in numerous lawsuits. Fortunately, green blockchain is a concept that recently came to fruition.

Developers have claimed that blockchain technology can turn eco-friendly energy alternatives. In doing so, it can reduce its carbon footprint and increase efficiency. This article will highlight what green blockchain is and its existing use cases.

Extreme energy levels before the concept of green blockchain

Blockchain has numerous applications, but its most iconic and revolutionary concept is depicted in the financial sector. Decentralized finance has ushered in a new age of economic systems that lower and interconnect users easily. It led to the development of Asia’s fastest-growing financial industry, the fintech sector.

As a result, companies such as Flutterwave, Yellowcard and Luno have taken the world by storm. Its advantages are clearly defined as more African governments warm up to decentralized finance. Going back, crypto trading is one of Africa’s highest alternative income earners. Nigeria, Kenya and South Africa have attained record-high ratings. 

Also, Read crypto and blockchain can lead the world to environmental sustainability.

Despite its revolutionary changes and positive impact, one major problem looms over the head of blockchain developers; high crypto energy levels. According to statistics, the Bitcoin blockchain alone consumes 204.5 TWh of electricity annually. This is enough energy to power a country like Finland in a year.

According to Digiconomist claimed that Bitcoin is 0.82% of the world’s energy, while Ethereum uses 0.34%. Remember, this does not account for upcoming crypto coins such as Dogecoin, Solana and Cardano. Since most crypto energy levels result from the PoW consensus mechanism, most crypto exchanges have developed alternative ways.

Some organizations have opted for more eco-friendly energy sources such as solar and wind, but unfortunately, this only applies to a small demographic. Most decentralized networks often rely on the facilities of crypto trades. These crypto energy levels are directly linked to the electricity traders consume in the decentralized network.

As a result, Ethereum had to look for alternative mechanisms to avoid backlash from eco-friendly organizations. This led to the creation of POS mechanisms that cut their power consumption by more than 90%. Fortunately, this sparked a China reaction leading to the creation of a green blockchain.

Understanding green blockchain and its effects.

Green blockchain is an application whose underlying mechanism does not contribute significantly to climate change through eco-friendly energy alternatives. High crypto energy levels have painted a negative picture toward the broad adoption of a web3 ecosystem.

According to experts, with the current wave of digital transformation, future generations are inclined to invest in digital currencies such as crypto. Investors have documented that 94% of GenZs and younger millennials have flooded most decentralized networks contributing significantly to the volatile price fluctuations.

Fortunately, green blockchain systems are growing in popularity among various exchanges. Ethereum ushered in the concept of green blockchain through its recent update Ethereum 2.0. 

PoS consensus Mechanism is the first iteration of green blockchain systems due to its low crypto energy levels.[Photo/Medium]
When focusing on blockchain applications in other industries, most share a common element, smart contracts. Numerous eco-friendly energy alternatives can easily power the concept of green blockchain. Smart Contracts use immense energy to automate data collecting dn administration to gain real-time and reliable data.

Also, Read the Central African Republic announced plans for the new crypto regulation framework.

Considering its application within Bitcin’s decentralized network, it would facilitate and manage at least 500,000 daily transactions. This same technology is estimated to transform insurance agencies and financial institutions, increasing their capabilities and functionalities. Thus covering a green blockchain network would significantly reduce the energy sustaining such smart contracts.

Aside from dealing with high crypto energy levels, one of the more crude applicants of green blockchain technology is energy training. Today blockchain plays a vital role in facilitating the purchasing and selling renewable energy. Blockchain-based solar energy programs are the first iteration of green blockchain.

Such a system supports the rise of eco-friendly energy distribution and levels the playing field with high-carbon energy companies. Crypto miners are also another example of indiviudals who can easily ensure that distributed networks can be green.

Various crypto miners opt for alternative power sources such as wind, hydroelectricity, and solar to power their devices to run on a decentralized network. Green blockchain energy is not a cumbersome concept. It is essential directly deal with high crypto energy levels by relying on eco-friendly means to accomplish the same tasks.

Use cases of green blockchain.

XDC Network

The XDC network is the first Green blockchain network within the crypto market. The XDC is a secure decentralized cryptocurrency that facilitates more than 2000 transactions per second.

Aside from ensuring that it utilizes eco-friendly energy sources to lower its crypto energy levels, it also adopted a PoS consensus mechanism. With its underlying blockchain technology, it can mint XDC coins easily while consuming as much energy as a word processor. Its decentralized network utilizes 0.000007446 TWh or just 7,446 kWh of electricity.

ReGAl 38183

The British firm ReGal 38183 is an organization that offers green financial compliance solutions. Its organization’s primary goal is to establish a green blockchain system that allows clients to experience the same financial services that typical blockchain applications offer with less energy consumption.

The organization provides a sustainable financial platform, OIII3 BANK. The decentralized network allows clients to incorporate social, environmental and governance parameters into financing and investment choices while utilizing blockchain technology. The organization uses the green blockchain concept to provide users with better financial options. Its green blockchain apps also provide friendly projects giving users the freedom they require in any decentralized network.

MIRIS’ Green Finance Framework

Norwegian startup MIRIS developed the Gren Fiance Framework to implement the application of Gren blockchain systems in traditional financial methods.

Also, Read Blockchain in the Energy Industry, transforming the globe directly.

The framework allows the identification, documentation and monitoring of cash flow in final projects built as blockchain applications. Despite its take on a decentralized network, the Green Finance Framework is in its early stages but has developed a practical system.

Firthemreo, the framework aligns with the International Capital Market Association’s Green Bond principles.

Cardano ADA

Cardano launched their own PoS consensus mechanism shortly after Eth2.0 entirely replaced its predecessor. It is a rising titan within the crypto market and has played a significant role in Africa’s crypto adoption rate. Furthermore, Cardano contains a daily transaction volume of $13.25 billion; thus, its transition toward an eco-friendly alternative significantly boosted its pace. 

Cardano’s founder now claims that its decentralized network only uses 6GWh of power.


Green blockchain technology is still a rising concern among different organizations and industries. However, as the use o blockchain application use rise, so will the need for eco-friendly energy to sustain the automation of various tasks within decentralized networks. Fortunately, Africa is a hub for renewable energy and may be an upcoming economic activity for the continent. With high crypto energy levels today, it’s only a matter of time before exchanges turn to alternative energy sources.


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Ken Mutuku
Ken Mutuku
Your Guide to the Future of Tech, Web3, and Digital Storytelling. With a keen eye for detail and a knack for concise communication, Ken Mutuku is your go-to professional for decoding the next wave of technological evolution. Whether through captivating videos, insightful articles, or engaging presentations, he masterfully crafts messages that deeply resonate with his audience, setting him apart in the digital landscape.