Could Blockchain Have a Positive Environmental Impact?
Blockchain and Cryptocurrency have become some of the latest trends to hit our virtual world. With popular examples like Bitcoin and Ethereum, cryptocurrency has seemed to generate money out of thin air thanks to blockchain. In many cases these platforms have created immense value greater than the currencies of most countries. But how does it all work?
In blockchain, a series of cryptocurrency transaction records, form a sequence. Each record contains immutable data endowed in cryptography including a unique hash. Computers across the network compete to validate this hash in exchange for some value in the cryptocurrency. The whole process is virtual and happens in a decentralized system. This means that no governing system like the SEC will have to verify the transactions on their end. Now knowing this, what kind of impact can blockchain have in our world?
Though virtual, many blockchain companies have added an impactful approach to their vision. In doing so, they have combined the blockchain process with a beneficial incentive to better the world around us. With this approach, these blockchain companies are able to focus on an environmental impact rather than strictly a monetary focal point.
For example, some companies use blockchain and cryptocurrency to dynamically make an impact in the environment. A model of this dynamic impact is the Poseidon Foundation. The Poseidon Foundation fights climate change by incorporating what is called carbon credits. This is all implemented thanks to their AI-based blockchain platform called Reduce.
Reduce analyzes the carbon footprint of any product and corresponds this amount to its relative carbon credit value. The final cost of the product then includes this carbon credit value. This higher cost helps deter users from products with higher environmental costs. The Poseidon Foundation claims that blockchain has been crucial in this process as it has allowed them to efficiently create public, immutable records of each carbon credit while also making it easier to implement with retail systems across the globe.
Another environmentally impactful blockchain company is BitSeeds. BitSeeds is a blockchain solution that looks to combat deforestation. BitSeeds can be freely spent just like any cryptocurrency, however, BitSeeds makes its environmental impact by pledging to plant a tree for every BitSeed created on its platform. With this pledge, BitSeeds promises to plan over 1 billion trees to preserve and rebuild half of all the rain forests. BitSeeds hopes, with this initiative, to encourage environmentally-orientated people to use their platform and to join their fight against deforestation.
Another great example is Oxyn. Oxyn helps environmental organizations by providing funds through its platform. For every transaction that takes place, Oxyn gives 0.5% of it to environmental organizations which they refer to as “Green Fighters.” Oxyn aims to support environmental projects with large potential impact in our world, that were “forgotten” by other impactful blockchain platforms.
We can see from these different companies that newer technology, though often completely virtual, can pave the way for sustainable impact in our world.
This dynamic vision funnels more and more environmentally conscious users allowing further impact in the world. It is up to us to keep looking at newer technologies and finding links like these that can better our world and have a sustainable impact.
In the Cover Photo: A connected chain of green rope. Photo Credit: Unsplash
EDITOR’S NOTE: The opinions expressed here by Impakter.com columnists are their own, not those of Impakter.com.