Blockchain technology has already revolutionised several industries, and while its impact is mainly felt in the financial industry, it can also create a greener world. It could, for example, be used to bolster renewable energy or incentivise sustainable practices.
Some cryptocurrency projects have already set out to improve our world through the use of blockchain technology. While it would be nearly impossible to list every environmentally friendly project, we came up with three green cryptocurrency projects to keep an eye on in 2021.
First up is SolarCoin (SLR), a global and decentralised cryptocurrency project looking to make solar energy more accessible to everyone in the world by minting one SLR token for every megawatt-hour (MWh) generated through solar technology.
SolarCoin is distributed as a reward for solar installations, and its goal is to see the price of the token exceed the production cost of solar energy. Hence, it effectively becomes free in a process called Solarity.
The project claims solar energy is now produced at under $12 per MWh in some countries, and the cost keeps on dropping. Its goal is to incentivise the production of this type of energy. The network currently relies on users uploading documentation to prove they are generating solar energy, but the Internet of Things may one day make this process automatic.
OUD Token (OUD)
Our second green cryptocurrency project to watch in 2021 is the OUD Token project, an ecological token that, at the same time, wants to make the world greener and preserve a precious natural resource: the Aquilaria tree.
Each OUD token could serve as proof-of-origin and trace the steps of a tree’s lifespan, from the moment it’s planted until its oud is processed. Agarwood is some of the most expensive raw materials globally, getting up to $100,000 per kilogram.
A tree’s oud is essentially resin-infused chips separated from the Aquilaria tree. Oud chips are often used as incense, but they can also be distilled into an essential oil. Its purest form can cost up to $80,000 per litter, which has earned it the nickname of liquid gold.
Oud is now a common ingredient in high-value fragrances. The population of Aquilaria trees has been dropping exponentially because of unsustainable practices, so a solution is needed. That solution could be the OUD token.
Through blockchain technology, OUD tokens will provide unique identities for Aquilaria trees worldwide, which are trackable via RFID technology and smart contracts on both the Binance Smart Chain and Ethereum blockchains.
Out of 700 million tokens, 6% are being distributed in a private sale and 29% in a public sale. In addition, 40% are reserved for the project’s development, 5% are going to the team and its founders, 5% to handle legal issues, and 5% for a bug bounty campaign. The remaining 10% will be used in partnerships to bolster the project and its goals.
Investors can participate in the pre-sale event from July 29 to August 4, where one OUD costs $0.06 and a total of 120 million tokens will be distributed. In the Initial Coin Offering itself, 580 million OUD will be distributed for $0.07 between August 6 and August 8.
After the sale ends, the token will be listed on Bitmart before going live on other exchanges. It’s worth noting tokens sold in the pre-ICO and ICO will have a vesting period, where 25% are released upon listing, and the remaining will be progressively released.
BitGreen was founded in late 2017 in response to the environmental impact of Bitcoin. It’s a community-driven cryptocurrency that aims to be an alternative to using the Proof-of-Work cryptocurrencies out there.
It’s intended to incentivize environmentally-friendly actions, with users being able to earn tokens to, for example, carpooling on an app or buying from sustainable brands. They can also earn BITG by staking their tokens on a wallet or setting up a masternode.
BitGreen uses the energy-efficient Proof-of-Stake consensus algorithm to maintain consensus across the network.