• New green crypto setting the standard for future blockchain networks.
• There are concerns in the sector regarding its security and performance.
• Experts are hopeful that it will help transition crypto transactions to become greener.

A new cryptocurrency called Algorand has jumped on the bandwagon for its sustainability features and has become popular in the crypto market.

Developed in 2017, Algorand uses much less electricity than most other cryptocurrencies.

Traditionally, cryptos, like Bitcoin, operate on a system that consumes a lot of energy to process transactions via a digital ledger called the blockchain.

This is where Algorand comes into the picture by simplifying how users interact with the blockchain. Simply put, now, users can buy and sell Algorand without consuming much energy. This efficiency reduces the environmental cost of running the system, says Blockchain Magazine.

READ MORE: Crypto Services for Modern Businesses: Balancing Efficiency, Compliance, and ESG

The new entrant, in terms of sustainable features, plays a larger role in today's environmentally-conscious crypto industry, as many cryptocurrencies use electricity from polluting sources, including coal and natural gas.

Businesses now recognise Algorand as an effective tool for sustainable finance, meaning managing finance in a way that is better for the environment.

Incidentally, cryptocurrencies are highly volatile. Nevertheless, many users still use them because they are more secure and help avoid dependence on traditional financial systems like banks.

So, Algorand is not free of criticism. Some quarters argue that it may be less secure and more centralised than conventional systems. Other quarters, however, are hopeful that it will reshape the cryptocurrency world.

ALSO READ: The Social Impact of Cryptocurrencies: Exploring The Advantages of Blockchain and Crypto

Finally, as the industry shifts towards greener and more efficient technologies, Algorand could play a constructive role in this transformation.

Are you looking to scale up sustainability in your business operations? Explore our ESG Marketplace, where you can find more than 600 ESG and sustainability providers offering an array of services.

Follow KnowESG's Crypto News for regular news and views.

Check out KnowESG's latest ESG Events updates

Source: Yahoo! news