Ethereum and Monero: Which Project Is More Ecologically Friendly?

Environmental Aspect of Cryptocurrencies: Ethereum vs Monero

The climate and energy debate gets more heated every year. So do the criticisms of energy-intensive cryptocurrencies. The Bitcoin network uses more energy than some countries like Argentina (with a population of 45 million). A single BTC transaction emits 300kg of carbon dioxide.  

So, for those with environmental concerns, do any other cryptocurrencies do any better? Here we'll look at the environmental credentials of two of the most used cryptocurrencies: Ethereum and Monero. We'll see if they are more eco-friendly and whether it's beneficial to swap XMR to ETH. 

Is ETH Eco-Friendly?

The focus of the environmental criticism targeting cryptocurrency is the Proof-of-Work consensus algorithm. It implies crypto miners competing with each other to solve difficult computational problems. The ones that consume the most energy get to create blocks on the blockchain and reap cryptocurrency rewards. 

Right now, the Ethereum network uses the energy-intensive Proof-of-Work, so it is not very eco-friendly. A single ETH transaction can power an average US household for around six days. From an environmental viewpoint, that is devastating. 

Will Ethereum 2.0 Change the Situation?

There is some eco-friendly light on the horizon for ETH. Ethereum is currently transitioning to the Proof-of-Stake consensus algorithm. This will remove the energy-intensive mining, and replace it with a more efficient staking model. If this transition to Ethereum 2.0 is successful, ETH will become much safer for the environment. 

Is XMR Eco-Friendly?

Monero also uses the Proof-of-Work consensus algorithm. It is also in the same ballpark as BTC and ETH in...