Algorand Blockchain – Green and Sustainable

The trend for sustainable development and green technology has been particularly popular for the past decade and by now has encompassed perhaps all possible spheres, including the crypto industry. Algorand is definitely on the list of the most environment-friendly cryptocurrencies, thanks to its core technology and commitment to becoming a carbon-negative network, as it has low carbon footprint.

Key Points

  • Algorand maintains security of its network through the Proof-of-Stake protocol
  • The protocol delivers excellent transaction speeds and helps ensure sustainable consumption of electricity and reducing environmental impact
  • Algorand’s  partnership with ClimateTrade indicated the network’s decisive step towards becoming a carbon-negative sustainable blockchain
  • ALGO can easily be accepted as payment or donation

Proof-of-Stake Technology

Currently, there are two types of consensus protocols that absolutely dominate the crypto industry. The first one, the Proof-of-Work protocol, was first introduced by Satoshi Nakamoto as a solution for Bitcoin’s network security. Mining is the key feature of this protocol since it constitutes the process through which a blockchain’s integrity and issuance of new coins are achieved. Yet, despite its popularity, it has one considerable drawback; namely, it negatively impacts the environment. Miners who have to run their equipment to solve computational problems consume large amounts of electricity which are getting bigger every year.

On the other hand, the Proof-of-Stake protocol utilized by Algorand allows networks to reduce their footprint on the environment by completely eliminating the factor of mining. Algorand, as a prominent Proof-of-Stake network, does not need thousands of miners competing against one another and simultaneously wasting megawatts of electricity along the way. Instead, it relies on validators that authorize transactions taking place on the network by staking their crypto. With the help of this protocol, Algorand ensures near-instant transfers and low transaction fees while maintaining decentralization and extremely modest use of electricity.

Partnership with ClimateTrade

As a cryptocurrency that has openly expressed its commitment to becoming carbon-negative, Algorand has undertaken a variety of measures to make it a reality, and partnership with ClimateTrade is one of them. ClimateTrade is an organization that assists businesses in attaining their CO2 emissions goals and helping them reduce their impact on the environment. Companies can set up their private account with ClimateTrade and offset their emissions by choosing a sustainable project to donate to. The platform uses the Algorand blockchain to track the flow of all the funds it processes. Algorand, by partnering with ClimateTrade, decided to take another step towards earning the status of the most eco-friendly blockchain on the planet.

Although Algorand’s Proof-of-Stake protocol already guarantees it a high degree of energy efficiency, it is crucial to track the network’s performance as it expands even further. Together with ClimateTrade, Algorand has designed and implemented an oracle which notarizes the carbon footprint of the blockchain for each certain number of blocks. After calculating the impact of Algorand, an equivalent amount of carbon credit is locked into a green treasury to ensure the carbon negativity of the network.


Algorand is undoubtedly one of the most promising blockchains on the market not only because of its exciting technology but also its commitment to staying green. Algorand maintains its eco-friendliness through the use of the Proof-of-Stake protocol to support its network, which significantly reduces the amount of consumed electricity. Algorand also partnered with ClimateTrade, which helps the blockchain achieve its goal of becoming carbon-negative.