Blockchain for Conservation? Maybe, but leave the crypto out
- The increasingly popular blockchain technology is being used for conservation finance purposes, but it comes with some significant drawbacks, both functional and environmental.
- The “mining process” of popular cryptocurrencies, such as bitcoin, is very energy-intensive, comparable to the annual electricity use of entire nations.
- Journalist Judith Lewis Mernit and author Brett Scott join the Mongabay Newscast to discuss these environmental impacts, the complications, and the relationship between our economic systems and our ecological ones.
In this episode of the Mongabay Newscast, Brett Scott, author of Cloudmoney: Cash, Cards, Crypto and the War for our Wallets, provides a brief history of blockchain technology and cryptocurrency. He explains the designated value proposition of the technology and the complications and drawbacks it poses, especially for conservation. Journalist Judith Lewis Mernit joins to discuss her recent reporting in Yale Environment 360 on the bitcoin mining boom in Texas and how this has driven up energy costs for the average consumer.
Listen:
Blockchain technology comes in many forms. There are cryptocurrencies such as bitcoin, NFTs (non-fungible tokens) and smart contracts, to name a few. They are increasingly being used to finance conservation or to complete transactions. While blockchain technology can contribute to transparency by serving as a public ledger, there are a number of cases that make its use arguably impractical or environmentally harmful.
The cryptocurrency itself is decentralized, and verified on virtual ledgers, but largely functions as a resource. The speculative nature of it (especially NFTs) raises questions about its viability for fundraising. Many conservation efforts rely on intergovernmental oversight for accountability. If transactions are automated and you remove that middleman, who judges the effectiveness of a completed project before issuing a payment?
Texas now hosts a quarter of all bitcoin “mining” companies worldwide, but at the cost of increasing energy costs for consumers. Electricity prices in Texas are 70% higher than last year. Bitcoin mining, by itself, uses more electricity annually than the countries of Belgium or Venezuela. With the outsized environmental impact of the energy-intensive mining process, does the cryptocurrency’s designated funding potential outweigh the greater environmental disadvantages it brings?
All of these questions and more are explored in this episode.
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Banner image: Three forms of cryptocurrency. Image by WorldSpectrum via Pixabay.
Mike DiGirolamo is Mongabay’s public engagement officer. Find him on Twitter @MikeDiGirolamo, Instagramor TikTok via @midigirolamo.
Related reading: Beyond chained monkeys: Blockchain polarizes the wildlife community
Article published by Hayat
