WEF launches Crypto Sustainability Coalition with Stellar Lumens and Avalanche
- The new coalition will focus on how Web 3 technologies will impact climate change.
- It will also examine how these technologies can play a key role in decarbonising today’s activities.
As the crypto and blockchain industry moves forward toward new developments, global organizations are leveraging technology to achieve important goals. Last month in September, the World Economic Forum (WEF) launched the Crypto Sustainability Coalition.
This initiative works to assess the role of Web 3 technology in the fight against climate change. Web 3, a term that combines blockchain-based technologies and crypto, has been in the spotlight recently. The World Economic Forum (WEF) seeks to find out whether the use of these technologies has any negative effects on climate change.
The initiative was announced last month on September 21 and is called the Crypto Sustainability Coalition. It consists of 30 different companies together with educational organizations and other institutions. It also includes some of the well-known cryptocurrency projects such as Stellar Foundation, Avalanche, Solana, Ripple, Circle and NEAR Foundation.
#WorldEconomicForum Sustainability Coalition to leverage Web 3 technologies 🤝
Stellar is part of the new monetary infrastructure
▫️https://t.co/4TCb9nvN6c$DXLM is the utility token powered by DogeLumen’s Metaverse/ Web3.0 community 🛰️#DXLM #XLM #Dogelumens #Star #Web3 pic.twitter.com/WRlN9gIgDr— DogeLumens 🚀 (@DogeLumens) 3 October 2022
This coalition will work as part of the Crypto Impact and Sustainability Accelerator, which is another major initiative launched earlier this year. The coalition will inquire about the various ways in which these companies can cooperate. Speaking about this development, Brynly Llyr, Head of Blockchain and Digital Assets for the World Economic Forum, stated:
An important and unique aspect of Web3 is that it uses technology to support and reward direct community engagement and action. This means that we can coordinate the work of many individuals directly with each other, enabling collective action without centralized control.
Understand key areas of the crypto ecosystem
This new initiative by the World Economic Forum (WEF) has created different working groups to examine three topics related to blockchain, crypto and its applications. One of these points has to do with the energy consumption of these technologies. The initiative will also work with how these technologies can affect the climate in the future.
There have been several debates about Bitcoin’s energy use in the past. The Proof-of-Work (PoW) consensus mechanism that Bitcoin uses requires high-tech equipment that consumes large amounts of energy. The Bitcoin network has also faced heavy criticism for its energy consumption in the past. Ethereum, which previously used similar technology, recently switched to Proof-of-Stake (PoS).
As crypto and blockchain expand into Web 3, the World Economic Forum (WEF) considers how this could affect the climate in the future. Another important view of the Crypto Sustainability Coalition is how Web 3 technology can advance and help decarbonize current activities. The applications may include mining and other decentralized activities.
The third topic will be standardization and adding carbon credits to the blockchain. These will make the issuance and management of these instruments more transparent.
The World Economic Forum (WEF) is trying to leverage different crypto technologies for different purposes. Back in 2020, WEF partnered with Chainlink to build a bridge between legacy systems and blockchain environments.
