What Impact does Blockchain have on the Current Environmental Crisis?

Governments and organizations from all over the world have been concentrating on adopting various technical solutions to address the issues posed by climate change and biodiversity loss in recent years. According to Mark Tencaten, Blockchain technology is one instrument that could be very useful in addressing climate catastrophe.

Mark Tencaten explains that Blockchain is a decentralized, digitally distributed ledger that aids in transaction tracking and validation from a technical standpoint. Even though Blockchain is best recognized as the technology that powers cryptocurrencies like Ethereum and Bitcoin, environmental experts are already discovering other applications for it in combating the climate issue, from tracking pollution to the sustainability of products.

In accordance with a survey by the United Nations Environment Program (UNEP), Blockchain's decentralized transactions technology can offer important enhancements by enabling investors, developers, and buyers of renewable energy projects to work together on a common platform with established international standards for compliance due diligence.

Anybody with internet access may buy solar panels online from a South African renewable energy firm and rent them to hospitals, businesses, and other African organizations. The company makes international payments via the Bitcoin blockchain. As a result, there are no longer any potential middlemen between investment and beneficiaries. Companies in South Africa have cut their energy bills by close to 30%, thanks to easier payments method via cryptocurrencies.

Mark Tencaten also said that supply chains that are ecologically friendly and sustainable could potentially leverage blockchain technology. By making supply chains transparent, technology can follow products from the point of manufacture and assist in preventing waste and inefficiency. Blockchain can also give customers more insight into the manufacturing and delivery processes for the products. As a result, they will be able to choose environmentally friendly options.

Recycling is another aspect of environmental sustainability that Mark Tencaten believes can be significantly impacted by Blockchain. Organizations can offer financial incentives to people in the form of cryptographic tokens by putting in place a recycling scheme on the Blockchain. This might be offered in exchange for the deposit of recyclable items such as plastic bottles, cans, and other containers. This assists in keeping track of crucial information like cost, volume, and profit, as well as in assessing the program's participants' environmental impact.

Numerous organizations are already developing such Blockchain-based recycling initiatives. For instance, The Plastic Bank, a company, uses IBM cloud computing and blockchain technology to develop a program that can be used to generate revenue from ocean plastic. Plastic Bank effectively establishes collecting points around developing nations through its sustainability initiative, turning plastic waste into money. The company is now developing a blockchain-based application that lets customers trade cash for cryptographic currencies. This enables individuals to deposit spent plastic in exchange for various rewards, including cash savings, phone charging, etc.

Investors' guide

Large-scale, worldwide sustainable development programs have become extremely complex, which has led to delays and backlogs. Processes and systems that use blockchain technology can manage transactions very effectively and efficiently. Investors are interested in sustainable development as well as other climate-related activities for this reason. Processes and platforms powered by Blockchain can assist in managing stakeholders who serve multiple purposes. As a result, sustainable development related to climate change will be highly advantageous for private investments, boost efficiency, and decrease transactions.

Drawbacks

Even if using blockchain technology to address the environmental situation has numerous advantages, there are also many drawbacks. Certain transactions on the bitcoin and Ethereum blockchains take a considerable amount of electricity and computational power to process. This is a major problem in many nations where energy costs can be excessively high.

Additionally, regulatory frameworks are necessary since they will be crucial in tackling the massive price of processing power. Energy customers are quite likely to take part in extra energy trading using blockchain platforms since electricity pricing would have to change.

Summary

The analysis makes it clear that Blockchain technology may undoubtedly assist in finding solutions to the environmental challenge and enhancing sustainability in a variety of ways. However, advancing digital infrastructure is necessary to promote the adoption of emerging technologies like Blockchain. Policymakers are expected to adopt policies that can aid in designing future energy systems and prevent environmental hazards as Blockchain and associated digital technologies advance quickly.

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Created on Aug 15th 2022 10:41. Viewed 165 times.

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