The Blockchain As An Opportunity To Environmental Protection
Technology doesn’t automatically mean more pollution. It can also offer a chance to fight against it. The best example of this is the blockchain. People call it often a climate sinner. But that seems too short-sighted. On the other hand, the blockchain could become the key technology in the implementation of an energy transition towards renewable energy. We know the blockchain as a technology for the secure and permanent recording of constantly retrievable data. As a result, it also has excellent potential for environmental protection. Organizations have already recognized this. They use it to record data about the environment and to record changes in the ecosystem. The trade uses them, for example, to make sustainable fishing traceable and thus lays the basis for eco-certification.
Savior Or Climate Sinner?
It is true; the blockchain consumes a lot of energy. But there are already solutions. At the same time, technology can make a valuable contribution to reducing environmentally harmful behaviour. The German car company Daimler has started a pilot project in which ecologically friendly driving behaviour is recorded in a blockchain and rewarded. For example, producers can save their energy certificates on the blockchain and are therefore entirely transparent for every consumer. In the future, direct distribution from the producer to the consumer even appears conceivable.
In any case, the potential of the technology appears to be extensive. After all, it is straightforward to link incentives to improve the environment. The combination of blockchain and cryptocurrencies can have an impact on the ground. The Poseidon Foundation also proves this. It combats climate change by including carbon credits. That works via the blockchain platform Reduce, which analyzes the carbon footprint of various products and assigns a credit value. The higher prices help consumers become aware of the effects of their purchase. The operators say that the blockchain implemented this idea possible in the first place. That creates public and unchangeable records of every carbon credit.
Transparent And Understandable
Other projects, for example, reward every issue of cryptocurrency with the planting of a tree. Some organizations support environmental projects around the world. In this context, it is becoming increasingly clear how well the blockchain can support the transition to decentralized and clean energy systems. Platforms collect and distribute data. That creates an essential basis that helps decision-makers to break new ground in the distribution of resources. The traceability and verification of renewable energy sources become child’s play. That also applies to the supply chains in goods logistics.
Since the records of the data cannot be changed, anyone can understand where the products come from initially. It is clear who created them and what impact the production had on the environment. That eliminates the enormous distances between the actors and restores trust. A fisherman, for example, caught his fish and documented it via SMS. From this point on, the blockchain records every transaction in the supply chain. It starts with the fisherman and ends with the consumer. In this way, the blockchain ensures the production conditions and makes a valuable contribution to environmental protection.