Use blockchain technology to go green

NEW DELHI: As the world talks about ESG – environment, sustainability and governance and is constantly looking for solutions in this area, we talk about technology as an enabler and blockchain as a tool to reduce several problems.

However, blockchain technology has often been criticized for being harmful to the environment and unsustainable.

But surprisingly, it is quite the opposite since problems such as climate change, degradation of the biosphere, water scarcity and other environmental problems can be mitigated by utilizing blockchain technology. Let’s explore some here.

Environmental monitoring is a critical area and blockchain plays a big role here.

The European Organization for Nuclear Research, known as CERN, through its subsidiary PlanetWatch, is working to improve global air quality monitoring to address the public health crisis of air pollution affecting millions of people worldwide.

To validate, filter and display data over the Internet and through a mobile application in real time, they have developed and deployed a global network of affordable air quality sensors.

The network of sensors is the first global immutable ledger for air quality measurements, and they have implemented the algorithm and blockchain is used as the underlying system.

Blockchain technology has the potential to underpin a new shared system for multiple parties involved in disaster preparedness and relief, increasing efficiency, effectiveness, coordination and trust in resources.

In the event of a disaster, smart contracts can enable a variety of actors to automatically share critical information.

This can facilitate rapid mobilization of newly available resources, automatic rerouting of supply chains and improved coordination of aid agencies’ responses to disasters.

SEA.earth is a good example as it strives to create positive environmental impact using blockchain technology.

Rewards for recycling are another great use case. Plastic waste is one of the most harmful types of waste for the environment.

Scientists predict that by 2100, the amount of garbage produced worldwide will have increased by 4 million tons! The world’s water supply is hopelessly polluted.

Several initiatives have been launched to provide participants with real benefits in exchange for cryptocurrency including better prices and lower taxes.

Programs like these are useful as they provide an incentive to recycle trash by turning it into cash, which is especially useful in less developed countries.

The number of offsets sold in the global carbon credit market has increased exponentially, reaching a total of over $144 billion last year.

With blockchain, we can now tokenize carbon credit assets via blockchain technology and facilitate a global, transparent marketplace where buyers and sellers can trade in the purchase of certified carbon offsets.

Blockchain technology can also support companies’ efforts to improve their environmental performance. Companies can use this to offset their carbon footprint and invest in climate change.

Blockchain makes it easier than ever for businesses to become carbon neutral.

Properly harnessed, blockchain technology will help us move toward decentralized solutions that are less wasteful of our resources, help access previously locked natural capital, and give voice to underserved communities.

Given the widespread prevalence of the tragedy of the commons and the difficulty of capturing the non-monetary value in the environmental sector, this is of the utmost importance.

India with its diverse geography has the potential to utilize this technology most effectively and emerge as a world leader in this field.