Blockchain and sustainability — There’s more to it than electricity usage
Blockchain and sustainability. There’s more to it than electricity usage.
Blockchain is a revolutionary technology that can help solve environmental issues. It’s already being used to fight pollution and traffic congestion, and it can also be used to replace the current system of buying and selling electricity, using it to auction energy credits, and then buying and selling electricity.
Sometimes, people forget that blockchain has a lot of other benefits. It can be used in a wide array of industries, such as agriculture and agriculture, medical technology, and more. And, last but not least, it can be used to help solve environmental problems like climate change.. Read more about ethereum supply on exchanges and let us know what you think.
In just over 40,000 days – over a hundred years – we have gone from the first flight to Earth to the first flight to another planet. In that short time, a huge amount of fuel was burned and, unfortunately, human lives were lost. In turn, flight changed everything from trade to warfare and led to the creation of entirely new industries. With the development of aviation, fuel efficiency has increased and mortality rates have decreased significantly.
In the digital realm, blockchain technology can be just as transformative, with applications in all areas, from commerce to collaboration to identity and resource management. Currently, these successes are achieved at the expense of high electricity consumption. This is a problem that must and will be solved.
Related: Ignore the headlines: bitcoin mining is already greener than you think.
The problem is that the current narrative uses this high energy consumption to label blockchain projects, and bitcoin (BTC) in particular, as unsustainable. This is not only bad for blockchain projects – especially in terms of investment and adoption – but also wrong.
Sustainability is assessed on the basis of three key ESG indicators: environment, society and governance. The current debate, which is characterised by a lack of nuance on the one hand and by unnecessary recriminations on the other, focuses exclusively on the environmental aspect of sustainable development. Social and governance aspects are largely ignored, leading to an inaccurate picture of the sustainability of both bitcoin and blockchain projects in general.
Related: Bitcoin miners can prove their green credentials by passing the ESG assessment test.
The social dimension must be seen in the broader context of the economy’s transition to platforms. Everything from car journeys to buying books and ordering takeaway is now done on platforms. In this win-win world, successful platforms can end up imposing unfair terms on their employees thanks to their market power.
Token blockchain projects can solve this problem by enabling ownership of the platform based on employee contributions. As a result, employees benefit from the growth of the platform rather than being suppressed.
Related: Understanding the systemic transition from digitization to tokenization of financial services.
Blockchain technology enables seamless and automated execution of rules/processes on a global scale. This capability is based on a combination of immutability, transparency, censorship resistance, decentralized software execution, and economic incentives unique to blockchain.
This makes blockchain a rich testing ground for governance in the digital age – a testing ground that, as we see in decentralized finance, is making interesting progress almost daily. It is only a matter of time before the knowledge gained will help us better manage the global commons.
Related: Decentralized participants : The future of networking
A piece of fabric and wood from the original Wright Flyer was taken to the lunar surface by the Apollo 11 astronauts. The fabric and wood had no other functional purpose than to symbolically connect the two historical events.
It has been about 4,600 days since the bitcoin white paper was published. With the breakneck speed of blockchain innovation, the blockchains of today – and their energy consumption – will also become icons of the past.
It would therefore be more productive to take a more holistic view and focus efforts on a sustainable outcome, rather than treating unfinished business with excessive judgment – and missing out on the potential social and governance benefits by opening blockchain up to theft and profit in the process.
The views, thoughts and opinions expressed herein are those of the author and do not necessarily reflect or represent those of Cointelegraph.
Gees Hof is the Managing Partner of Coinstone Capital, a Dutch digital asset investment advisor specializing in customized crypto asset portfolios for retailers, HNWIs and family offices. Gees writes and speaks about blockchain and society, with an emphasis on tokenization, including platforms and CBDCs.Blockchain has been touted as the future of technology – a way to store countless transactions in a secure and transparent way. But, it’s important to look deeper into blockchain projects, see exactly what it does, and what it’s capable of. And, that’s what we’re doing in this blog post!. Read more about should i buy bitcoin at 40k and let us know what you think.
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