The use of blockchain technology to cope with the climate crisis
By Pratik Gauri
In recent years, governments and organizations around the world have realized that it is only possible to reduce climate change and the loss of biodiversity through innovation. One of the tools that can be very effective in tackling the climate crisis is the blockchain.
A blockchain is a digitally distributed, decentralized ledger used to track and verify transactions. Although what made it famous became known as the technology behind cryptocurrencies such as Ethereum and Bitcoin, researchers are now finding its use to address the fundamental issues surrounding the climate crisis, which include tracking product sustainability and more direct time-monitoring of pollution.
Blockchain can be used to ensure sustainable business practices via:
Renewable energy
According to a report by the UN Environment Program UNEP, distributed ledger technology (DLT) can provide tremendous improvements by allowing investors, renewable energy developers and buyers to collaborate on a common platform with established global standards for compliance and due diligence.
An innovative app developed in Australia, has begun to look at the impact of blockchain. Based in India’s Uttar Pradesh, this pilot project allows homeowners with solar panels on rooftops to sell electricity to others online. This involves setting up prices in real time and implementing transactions across the blockchain. These systems can help increase the deployment of renewable energy and help states move away from unsustainable electricity subsidies.
Another innovation in South Africa-based start-up of renewable energy allows anyone with an Internet connection to buy solar panels online and rent them to hospitals, schools, companies and other companies in Africa. The app uses the Bitcoin blockchain to make cross-border payments. This eliminates potential intermediaries between investors and beneficiaries. Through this app’s advantage and easy purchase of solar panels, companies in South Africa have reduced their energy costs by almost 30%.
Sustainable supply chain management
One of the most critical uses for blockchain is for a sustainable and environmentally friendly supply chain. DLT technology is ideal for tracking products from the manufacturer and helps prevent inefficiency and waste by making supply chains transparent. DLT technology also allows consumers to be better informed about how products were made and shipped. This will enable them to make environmentally friendly choices.
A new blockchain project focuses on making supply chains transparent. It is a public open source blockchain developed to provide material business benefits to developers and participants in financial services by using the register, ledger and exchange functions in several markets.
Recycling
One area for environmental sustainability where blockchain can have a significant impact is recycling. By implementing a blockchain recycling program, organizations can provide financial incentives to individuals in the form of a cryptographic token. This can be in exchange for depositing recyclable materials such as plastic cans, bottles, containers, etc. This helps to track important data such as cost, volume and profit and also helps to evaluate the environmental impact of a person or company participating in the program.
Many organizations are already working on such Blockchain-based recycling programs. For example, some companies are working to create an application that can help make money on marine plastics. This company turns plastic into currency through its sustainability project by setting up collection centers across third world countries. This allows people to put used plastic in exchange for various incentives such as cash support, phone charging, etc. The organization is now working on a blockchain-driven application that allows users to exchange plastic for cryptographic tokens.
A blockchain-based decentralized application (dApp) provides users with a reward and incentive system for recycling aluminum, plastic and steel boxes. By partnering with global offset and reward partners and using our app-based fundraisers, we will encourage people to recycle more and be rewarded for it. The RTC application will allow individuals to return their used plastic containers in exchange for a symbol via automated machines in Europe and other parts of the world.
The author is co-founder and CEO, 5ire
