How Blockchain Technology Can Be Used for Green and Climate-friendly Projectsby@mkaufmann
671 reads

How Blockchain Technology Can Be Used for Green and Climate-friendly Projects

tldt arrow
Read on Terminal Reader

Too Long; Didn't Read

People are becoming more environmentally conscious and want to use systems and services that don't damage the environment. Recently, there has been increased interest in launching initiatives to reduce carbon dioxide emissions and other greenhouse gases. The easily trackable nature of distributed ledgers can help ensure that corporations stick to greener initiatives, whether carbon credits or using sustainable materials. Bitcoin, the protocol that introduced the masses to blockchain technology, has a negative reputation among environmentalists due to the belief that it requires a tremendous amount of energy.

Companies Mentioned

Mention Thumbnail
Mention Thumbnail

Coin Mentioned

Mention Thumbnail
featured image - How Blockchain Technology Can Be Used for Green and Climate-friendly Projects
Matthew Kaufmann HackerNoon profile picture

@mkaufmann

Matthew Kaufmann

About @mkaufmann
LEARN MORE ABOUT @MKAUFMANN'S EXPERTISE AND PLACE ON THE INTERNET.
react to story with heart

Globally, people are becoming more environmentally conscious and want to use systems and services that don't damage the environment. Recently, there has been increased interest in launching initiatives to reduce carbon dioxide emissions and other greenhouse gases. The goal of these initiatives is to lessen the toll that people have on the natural world.

How Blockchain Protects From Environmental Damage

Blockchain technology is a promising system for helping to preserve the planet and safeguard it from the effects of environmental damage. The easily trackable and transparent nature of distributed ledgers can help ensure that corporations stick to greener initiatives, whether carbon credits or using sustainable materials.

For example, when it comes to carbon offset credits, they can be linked to blockchain-based assets, which can be seen on a public ledger. As a result, people can track how many carbon credits corporations are buying to offset their carbon footprints. Tracking a corporation's carbon credit purchases via blockchain is better than taking their word for it or relying on a closed-off and centralized third party.

Blockchain technology may be used to facilitate the systemic changes essential to creating resilient infrastructure. However, most people don't instantly link blockchain with reducing one's carbon footprint. For example, Bitcoin, the protocol that introduced the masses to blockchain technology, has a negative reputation among environmentalists due to the belief that it requires a tremendous amount of energy and causes significant carbon dioxide emissions.

This energy expenditure is necessary for Bitcoin to verify transactions within the network and compensate the miners who keep the blockchain secure. However, these worries are only valid concerning certain implementations of the underlying technology.

Through the establishment of new financial platforms, blockchain technology may open up previously unavailable funds. It might also galvanize companies' already pledge to cut their carbon output. Financing infrastructure projects at a lesser cost is a primary goal. One of the main goals is boosting transparency and providing more access to financial resources.

Bitgreen Wins the 29th Polkadot Parachain Auction in a Bid to Catalyze Green Blockchain Investment

Bitgreen, the company building blockchain’s epicenter for sustainability, secures its first parachain following Polkadot’s 29th parachain auction. Won through a self-funded bid of 75 thousand DOT ($475,275 USD), the parachain enables Bitgreen to scale its infrastructure for impact investors backing critical projects combating climate change and humanitarian crises.

As the clock keeps ticking on effectively solving the climate crisis, a $50 trillion dollar funding gap stands in the way of making essential ecological development a reality. But traditional funding methods powered by beneficence from massive organizations or individual donations can cause worthwhile projects to get overlooked. The UN’s 2030 Sustainable Development Goals deadline creates a palpable sense of urgency to close the funding gap. By centering community-building, blockchain platforms offer the potential to bring impact investors and vital projects together to attain these goals.

Bitgreen sets the foundation for ground-level sustainability, conservation, clean infrastructure, and empowerment projects to build a community of impact investors on the blockchain. The Polkadot-based layer-1 blockchain operates through a proof-of-stake consensus model, consuming 99.9 percent less energy than traditional networks to foster climate-positive, on-chain funding. Winning the Polkadot slot auction enables Bitgreen to deploy a parachain, empowering projects to access the network’s full interoperability, scalability, and security capabilities.

Polkadot is a key blockchain network renowned for its scalability and energy-efficient operations. As the number of parachains available for Polkaot’s main relay chain is limited, slot auctions grant projects the chance to develop new crypto assets and decentralized applications on their blockchain. Though parachain auctions typically occur through a “crowdloan” of DOT tokens put forth by the bidding project, Bitgreen achieved its win through a private bid.

“Winning the 29th parachain auction in a rare private bid sets a new achievement for us with Polkadot,” says Adam Carver, President of Bitgreen Switzerland Association. “Now we can finally begin the real work necessary to help close the astronomical funding gap for projects on the frontlines of solving the climate crisis.”

Data Gathering

Because it allows governments and others to collect data and information on infrastructure initiatives, this technology may help make alignment with sustainability objectives more transparent. Systems based on blockchain technology also make it feasible to keep track of carbon offset certificates immutable and secure.

There is hope that blockchain technology might help increase access and awareness by serving as a decentralized and open-source infrastructure for eco-friendly protocols. This might force adjustments within sectors to adapt to customers' shifting expectations, and it has the potential to incentivize and increase consumers' and institutions' motivation and capability to contribute to the creation of long-term sustainability. Furthermore, this may prompt adjustments within industries to meet evolving client needs.

Companies might improve current environmental protection methods by developing a global blockchain layer that provides transparency and data that users can trust. This promotes market integrity and strong carbon accounting and aids in transaction automation and general efficiency.

An additional advantage is that it increases market efficiency generally. Regulatory, compliance, and administrative activities may all be codified inside the system, leading to an open and understandable emissions accounting ledger.

Conclusion

Distributed ledger technology (or blockchain) is an innovative and appropriate solution that might help businesses fulfill the need for information that can be readily monitored and cannot be altered. This data is crucial for determining the precise amount of carbon emissions. Furthermore, carbon offset credit may be shared openly and readily among all participants in a distributed ledger technology network.

RELATED STORIES

L O A D I N G
. . . comments & more!
Hackernoon hq - po box 2206, edwards, colorado 81632, usa