4 Promising Climate Change Blockchain Solutions
Will the Climate Change Revolution Take Place on Blockchain?
Climate change is one of the most pressing issues facing the world today. The effects of climate change are already being felt by people and ecosystems all over the planet, and the problem will only worsen without dedicated intervention.
Hotter temperatures, changes in precipitation patterns, sea-level rises, and more extreme weather events are all consequences of climate change that we feel already. And, if we don't take action to mitigate and adapt to climate change, the situation will not turn around.
One of the most promising potential solutions to the problem of climate change is blockchain technology.
Most of us first heard about blockchain due to its association with Bitcoin and other types of cryptocurrency. It's essential to understand blockchain technology before we get into how blockchain can help with climate change.
Blockchain, also known as distributed ledger technology (DLT), is a digital ledger of transactions. When someone wants to make a transaction, they request it be added to the chain.
Once the network verifies the transaction, it is added to the chain and becomes immutable, meaning it cannot be changed or removed - unhackable.
It is also decentralised, meaning it isn't stored in any one place. Instead, it exists on a network of computers called nodes.
The network of nodes verifies each transaction on a blockchain. This verification process makes blockchain incredibly secure and transparent, as all transactions are visible to everyone on the web.
Mitigating Climate Change Using Blockchain
Now that we know what blockchain tech is let's explore how we can use it to fight climate change. While blockchain can’t be expected to solve the entire climate change problem alone, there are a few ways in which it can be deployed to help mitigate the effects.
Carbon trading is one of the most promising blockchain applications for climate change. It is a system in which businesses or individuals can buy and sell carbon credits. These credits represent a certain amount of carbon dioxide saved from being emitted into the atmosphere.
Using blockchain to track and trade carbon credits can create a more efficient and effective carbon market. This carbon market helps reduce emissions by making it easier and safer for businesses and individuals to participate in it.
Carbon Click is a fantastic example of a New Zealand-based blockchain carbon trading business.
Green Energy Trading
Green energy trading is we can use another way blockchain to fight climate change.
Currently, the majority of the world's energy comes from fossil fuels. For many reasons, fossil fuels present a problem to our planet. However, there is a growing movement to transition to renewable energy sources like solar and wind.
We can create a decentralised energy market with blockchain, enabling individuals and businesses to effortlessly buy and sell green energy. As with carbon trading, we help accelerate the transition to renewable energy by making green energy more convenient and affordable.
Supply Chain Tracking and Traceability
Supply chain tracking and traceability is another potential blockchain application for climate change.
It is the process that goods go through from production to consumption. It is crucial to make sure that goods are produced sustainably and with minimal environmental impact to reduce emissions.
Sustainable development is another way to use blockchain to fight climate change. It is the process of meeting the needs of present generations without compromising the ability of future generations to meet their own needs.
We can use blockchain to support sustainable development in a few different ways:
- Sustainable funding involves providing funding for projects that positively impact the environment. We can use blockchain to raise funds for sustainable development projects to ensure that these projects get the funding they need to be successful.
- Decentralised governance is another way we can use blockchain to support sustainable development. It is a system of decision-making that is not centrally controlled. With blockchain, the community can make decisions about sustainable development projects to ensure that these projects are aligned with the community's needs.
- Community management is a way of governing a community of people in a decentralised manner to ensure they get a say in their development.
The Benefits of Blockchain
Blockchain has several characteristics that make it well suited for addressing the problem of climate change.
- First, blockchain is decentralised, which means an absence of a central authority that controls the network. Instead, the network is run by a distributed network of computers, which makes it more resistant to tampering and manipulation.
- Second, blockchain is transparent. It means that all transactions on the network are visible to everyone. This transparency can help to ensure that businesses and individuals are held accountable for their emissions.
- Third, blockchain is secure. The nature of the network is decentralised, making it more difficult for hackers to tamper with data. Additionally, all data stored on the blockchain is encrypted.
- Fourth, blockchain is immutable. When a transaction is noted on the blockchain, it cannot be changed or deleted. Ever. This immutability helps to ensure that data about emissions are accurate and tamper-proof.
- Fifth, blockchain is efficient. The decentralised nature of the network does not allow intermediaries to verify transactions. It can help to speed up transactions and reduce costs.
Despite the potential benefits of blockchain, some challenges still need to be overcome.
Challenges Remain for Blockchain To Make a Real Difference in the Climate Change Fight
Blockchain has the potential to make a real difference in the fight against climate change. However, some challenges still need to be overcome for blockchain to make a real impact.
Blockchain is not yet scalable enough to use on a global scale; we can only use it for smaller-scale projects. Blockchain networks need to be more scalable to make a difference in the fight against climate change.
For blockchain to be used for climate change, it needs to be governed in a decentralised way. There needs to be a system for decision-making that is not centrally controlled.
Blockchain needs to be mass adopted by businesses and individuals. People need to be aware of the technology and its potential applications. At this point, it’s still something of a vague concept to the general population.
The Bottom Line
The world is waking up to the drastic effects of climate change. The impact of climate change is becoming more and more evident, and the need to do something about it is becoming increasingly urgent. One potential solution that is gaining much attention is blockchain.
Blockchain can be a powerful tool in the fight against climate change by helping track and reduce carbon emissions, enabling the development of renewable energy projects, and providing transparency and accountability in the supply chain of goods and services.
However, challenges remain. For these climate change blockchain solutions to truly make a difference in this fight, these challenges need to be overcome. When they are, the future of blockchain and reversing climate change effects looks very promising.
About the Author:
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
The above references an opinion and is for informational purposes only. Do not take this as personalised financial advice or investment advice. The views expressed by the author do not necessarily represent the opinion of BitPrime.
Last updated: 11/05/2022