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Cardano (ADA) Called Green Blockchain, Here's Why This Is True

Cardano ADAUSD, the third largest L1 blockchain, can also be considered among the most eco-friendly ones. Developers from Input Output Global (IOG) decided to address a series of publications about the "green" aspects of Cardano's ADAUSD design.

Two pillars of Cardano's ADAUSD eco-friendliness

Cardano ADAUSD deserves "green blockchain" status for its two clear advantages over L1 competitors: far less energy consumption and its staking mechanism. Such a statement was made by Input Output Global (IOG) in a tweet today, on May 25, 2023.

Input Output
@InputOutputHK

Why have commentators in newspapers and investing blogs such as the Motley Fool called #Cardano the ‘green blockchain’?Cardano has two clear advantages: far less energy consumption, and its staking mechanism. 🧵1/n

พ.ค. 25, 2023

Proof-of-stake (PoS), a type of blockchain consensus used by Cardano ADAUSD and post-Merge Ethereum ETHUSD, is far more efficient that proof-of-work (PoW) and its alternatives.

In PoS, block producers do not need to spend excessive amounts of time and computer power to find cryptographic hashes. That is what significantly lowers the carbon emission and reduces the influence of the blockchain on the environment.

As a result, Cardano ADAUSD node software clients can be run even on low-cost devices, including Raspberry Pi micro-computers. Unlike that, proof-of-work (PoW) blockchains rely on expensive hardware and consume huge amounts of energy, Cardano ADAUSD experts say.

As covered by U.Today previously, multiple Cardano ADAUSD ecosystem DeFis prioritized "green development" practices in its tech progress.

Cardano ADAUSD DeFi ecosystem accomplished major milestone

Meanwhile, the ecosystem of Cardano's ADAUSD decentralized applications scored further impressive milestones. For the first time ever, its net volume of funds locked exceeded 440 million ADA.

By late May 2023, five protocols managed to surpass $10 million in equivalent locked on Cardano ADAUSD blockchain. Minswap and Wingriders DEXes, Indigo and Djed Stablecoin collateralization modules and Liqwid lending/borrowing tool are in the top five.

USD-denominated TVL touched its local peak on May 24, 2023, at over $163 million, accordingly to DeFiLlama data dashboards.