Many worldwide companies and governments are focused on using different tools to handle the biodiversity loss and climate change crisis. One of the tools they sort to use in tackling this crisis is Blockchain. Many people may not know the meaning of blockchain, so we’re going to describe it in the next paragraph.
Blockchain is a distributed, decentralized digital ledger that enables transactions to be tracked and verified. Despite Blockchain’s reputation as the technology that created cryptocurrencies such as Bitcoin and Ethereum, blockchain is now being used by environmental researchers to solve the global climate crisis, which involves tracking products’ sustainability to monitoring pollution.
In this article, we’re going to look at how blockchain helps solves Environmental challenges.
How Blockchain Solves Environmental Challenges
Investments that comprise large development projects are now high complicated which has led to backlogs and numerous delays. Through blockchain platforms and processes, the transactions of these projects can be managed efficiently and effectively.
For this reason, climate-related and sustainable development projects can become advantageous for investors. Blockchain platforms and processes can be used to manage stakeholders involved in different capacities.
Private investments will be able to benefit greatly from climate-related sustainable development by increasing efficiency, reducing transactions, and reducing costs. A United Nations Environment Programme Report suggests that Blockchain can make major improvements by letting renewable energy project developers, investors, and buyers join forces on a platform that operates on global standards.
Many new projects based on technology and renewable energy have seized this opportunity and delved into blockchain to either supply solar panels or allow people with solar panels to sell power. This has helped reduce energy costs and increase renewable energy deployment. Companies and startups involved in this project include Power Ledge, an Australian technology company, and Sun Exchange, an SA-based renewable energy startup.
Besides these, Blockchain has ensured the security of crypto networks and transactions. With this in mind, Yuan Pay Group and other platforms can provide users with freedom in the crypto market.
You can also involve blockchain in an Environmentally sustainable supply chain process. You can use the technology to track products and prevent waste and unnecessary inefficiencies. You can also get your customers to understand how your products were made and transported using blockchain. This will enable them to make environmentally friendly decisions.
Another area where environmental sustainability can be achieved using blockchain is in the area of recycling. Organizations can implement a recycling program on blockchain and give cryptographic incentives in exchange for turning in recyclables. You can track different data that include volume, cost, and profit while evaluating the environmental impact of the program on the participating company or individual.
Many organizations already run this model. To monetize ocean plastic, an organization named The Plastic Bank leverages IBM cloud technologies and Blockchain. By successfully establishing collection centers across third world countries, Plastic Bank can turn plastic into currency.
With this program, people can deposit used plastic and exchange it for different incentives such as cash or phone charging. Now, the company is developing an application that uses blockchain technology to allow users to trade plastic for cryptographic tokens.
While there are many benefits in using blockchain to solve environmental crises there is the disadvantage of the consumption of large amounts of computing power and electricity required to process some transactions on Ethereum and Bitcoin blockchain. This is a challenge faced by countries where electricity is highly expensive
From this report, you can see that blockchain can be used to solve the environmental crisis and increase sustainability in several ways. But you will still need an improved infrastructure to drive the penetration of upcoming technology.