Is Luna Crypto a Sustainable Coin?
What amount of energy does the Luna crypto consume during transactions? There are concerns about Luna crypto's sustainability; how safe is the coin? A sustainable coin is friendly to its environment. Read on to know more about the Luna crypto.
Terra Luna is one of the largest cryptocurrencies in the crypto market, meaning that many transactions are made on it. So the big question is, how environmentally friendly is the Luna crypto? Concerns about the sustainability of this cryptocurrency are gradually coming up. A coin this large should be a sustainable coin or at least work towards achieving it.
To understand this article fully, you need to know what sustainability in cryptocurrency means. So here’s a brief definition of what a sustainable cryptocurrency means.
Understanding what sustainable coin means
Sustainability in cryptocurrency refers to a sustainable coin with less carbon footprint and low energy-consuming transactions. The carbon footprint has a terrible impact on the environment. Some of these effects are its negative contributions to urban air pollution, climate change caused by humans, acid rain, and more. This is really bad, right?
I have a friend who believes that everything in life has two sides: the good and the bad. It looks like his theory applies to cryptocurrencies. Cryptocurrency has made many people millionaires, but it has also harmed the environment greatly. But in the case of sustainability, not all coins are bad; some of the coins are sustainable, meaning they are less harmful to their environment. So is Luna crypto one of the good coins?
What is Luna?
Luna is a native token of the Terra network. It was created with a stable coin known as UST, the most popular stable coin currently. Terra Money white paper (Terra Money): Stability and Adoption was published in April 2019, and it posits that: While many see the benefits of a price-stable cryptocurrency that combines the best of both fiat and Bitcoin, few have a clear plan to adopt such a currency.
“Since the value of a currency as a medium of exchange is mainly driven by its network effects, a successful new digital currency needs to maximise adoption in order to become useful. We propose a cryptocurrency, Terra, which is both price-stable and growth-driven.” According to Terra’s white paper, the reason for creating Luna was to carry out what Bitcoin was initially going for, a peer-to-peer electronic cash system.
Terra Luna has really gone a long way, considering where it started from, hence my reason for initially calling it one of the largest cryptocurrencies in the crypto market. The Luna crypto was initially known for ensuring that stablecoins remain stable. However, it is now part of the most potential coins in the crypto space while still helping to maintain the stablecoins.
2021 was a stepping stone for Terra Luna. It started the year with less than a dollar price and ended it with about $89. On March 9, 2022, Luna reached an all-time high of $104.58.
The more popular a coin gets, the more people want to know about them. The awareness for crypto sustainability became stronger when Elon Musk announced, in 2021, that due to Bitcoin’s detrimental environmental impact, making payments to Tesla with Bitcoin would be stopped. This led people to start questioning the sustainability of other notable coins, like the Luna crypto.
Sustainability is a delicate matter and one that comes to light at every slight opportunity, considering how important it is to the world at large. Is the Luna crypto Eco-friendly?
On the Terra network, validators verify transactions based on the number of coins they hold, meaning that the network uses a proof of stake model. The use of this model consumes less energy than other models, and this makes the Luna crypto eco-friendly. The Proof of Work (PoW) model is more energy-consuming than the Proof of Stake (POS) model. The PoW model can only be run on high-tech computers that can solve complex algorithms to convert the bundle into a block and add it to the blockchain. This requires a lot of energy.
Notable organisations are now rejecting non-eco-friendly cryptocurrencies, and Luna remains relevant due to its safe nature. The most non-eco-friendly cryptocurrencies are those that require mining. Mining requires a lot of energy which leads to a high level of carbon footprint. Examples of mined cryptocurrencies are Bitcoin and Litecoin. Terra Luna is not a mine, meaning there is no use for the PoW model as it consumes so much energy.
Does Terra Luna make any impact in society?
Cryptocurrency is a free space without regulation. No higher powers are guiding the different crypto companies, and neither is the government involved. Some cryptocurrency companies take advantage of the lack of regulation and act as they please, mostly unethical, while some believe in morals and high positive standards. The Luna crypto team is part of those with good moral standards.
Terra Luna gives back to back to society. Firstly the fact that they use PoS rather than PoW. PoS does not just use less energy during the transaction. This helps conserve energy and save a lot of money and time for the investors. Operating a high-level tech computer requires a significant amount, but the case is entirely different with Terra Luna.
What Makes Terra stand out?
Terra is an independent PoS model blockchain, unlike some blockchain networks. Terra Luna is a Layer-1 blockchain, and it comes with lots of benefits.
Terra Luna offers a strong foundation for the growth of stable coins. It also serves as a secure and safe mode of structured payment or for creating a blockchain contract.
A Recap of What Makes Luna Crypto Sustainable The Luna crypto is a sustainable coin, and it is surely friendly. Why do I say this?
- Energy Consumption: Terra Luna uses the power of the stacking POS model, meaning it consumes less energy. Carbon Footprint: Terra Luna crypto uses a few hundred machines to power the Terra network. Although it still produces a carbon footprint but not so much and not as much as most cryptocurrencies.
- Eco initiatives: Terra Luna has a foundation created to help impact positively in their environment. Generally, cryptocurrencies have impacted the world at large, some in a positive way and some others in a negative way. Acting right is an organisation without regulation that requires a high level of restraint and discipline, and the Luna crypto has both.
Is Luna Crypto More Sustainable than Bitcoin?
This question regarding the sustainability of the Luna crypto is asked a lot. Well, the fact is that the two cryptocurrencies cannot be compared to each other in this way, as Terra Luna is by far more of a sustainable coin than Bitcoin. Bitcoin has a large number of infrastructures and uses thousands of machines to run its network, meaning that the carbon footprint would be on the high side.
Second, Bitcoin is created through mining, and the mining process for the coin requires supercomputers. Using supercomputers requires much power. High-level consumption of energy is bad for the environment. When it comes to eco-initiatives, the fact that Bitcoin gives back a lot to society cannot be disputed. However, so does Terra Luna. Terra Luna conserves energy because it uses fewer machines to run its blockchain network, and the Luna crypto is not mined. It uses the power of stacking model PoS, which uses way lesser energy when compared to Bitcoin.
Terra Luna crypto is more sustainable than Bitcoin, but that is not the case here. All cryptocurrencies should achieve sustainability to make our world livable for all of us.
What does the future hold for Terra Luna crypto?
Certainly, this will be the question on the minds of many, including me. A company as innovative as Terra probably already has laid down a plan for its future.
The world is watching and taking the need for cryptocurrency sustainability pretty seriously. Notable organisations like Mozilla and Wikipedia have already stopped accepting payments with cryptocurrencies that are not sustainable, putting all cryptocurrency companies on their toes. Hopefully, the Luna crypto will continue to be a sustainable coin and even improve more as an eco-friendly cryptocurrency. Green digital payments are very much possible for businesses; with time, they will be widely adopted with all cryptocurrencies, and our environments will become healthier for us.
Author: Shelly Kay
Shelly is a content writer, blogger, and ghostwriter with more than ten years of experience. She is a top-rated seller on Fiverr, providing digital marketing content that increases search engine visibility making websites gain social media attention.