Saving the Planet Could Be Blockchain's Killer App
The sustainability movement has become a 21st century megatrend, and it shows no signs of slowing down. Record-breaking heat in Europe, wildfires in the western United States, flooding in Pakistan, drought in China, and accelerating melting of ice caps in Greenland and Antarctica have made many people realize the imminent threat of climate change.
Meanwhile, The New York Times declared in December "the sustainable industrial revolution has only just begun", and even heavy industries like shipping, steel and plastics are beginning to grasp the importance of an environmentally sustainable future - by developing products like "green steel", which is a fossil-free steelmaking process.
But barriers remain, including questions about transparency, accountability, traceability, trust, data integrity, and even greenwashing (making false or insincere environmental claims). ?" despite their professed good intentions.
This is where blockchain technology could make a difference. Like the sustainability movement itself, blockchain technology is global, 21st century, and mostly unformed, though it is likely to soon be shaped by new laws and rules. Blockchains can simplify and reduce the costs of ESG (Environmental, Social and Governance) reporting, build trust in "collected" data, develop new environment-related business markets, and suggest new sources of innovation .
Blockchain can prove that green energy is really green. (Source: Pexels)In March, for example, automaker Volkswagen announced it was using blockchain technology to ensure electric vehicle (EV) charging stations used sustainable sources to charge their electric cars. This decision is aimed at consumers who wish to validate that the energy used to charge their vehicles does not come from electric companies powered by brown coal or similar. BMW is said to be developing something similar.
In addition, energy giant Shell announced in June the launch of Avelia, a sustainable aviation fuel (SAF) solution for business travel. The project uses a public blockchain to promote and validate SAF, which can reduce lifecycle emissions by up to 80% compared to conventional jet fuel.
Many now foresee a blossoming partnership between environmentalists and blockchain developers, especially as Ethereum with its big merger, along with other networks, moves closer to zero carbon and even negative platforms in carbon.
"I continue to believe that putting the Paris Agreement carbon markets on Ethereum and connecting the world's national carbon accounts, is the app that kills blockchain," Joseph Pallant, Chief Innovation Officer climate at Ecotrust Canada and founder and executive director of the Blockchain for Climate Foundation, says Magazine.
But if this promise of a blockchain/ESG alliance is to materialize, some questions need to be answered, including:
Are public permissionless blockchains scalable enough to handle the amount of d...
The sustainability movement has become a 21st century megatrend, and it shows no signs of slowing down. Record-breaking heat in Europe, wildfires in the western United States, flooding in Pakistan, drought in China, and accelerating melting of ice caps in Greenland and Antarctica have made many people realize the imminent threat of climate change.
Meanwhile, The New York Times declared in December "the sustainable industrial revolution has only just begun", and even heavy industries like shipping, steel and plastics are beginning to grasp the importance of an environmentally sustainable future - by developing products like "green steel", which is a fossil-free steelmaking process.
But barriers remain, including questions about transparency, accountability, traceability, trust, data integrity, and even greenwashing (making false or insincere environmental claims). ?" despite their professed good intentions.
This is where blockchain technology could make a difference. Like the sustainability movement itself, blockchain technology is global, 21st century, and mostly unformed, though it is likely to soon be shaped by new laws and rules. Blockchains can simplify and reduce the costs of ESG (Environmental, Social and Governance) reporting, build trust in "collected" data, develop new environment-related business markets, and suggest new sources of innovation .
Blockchain can prove that green energy is really green. (Source: Pexels)In March, for example, automaker Volkswagen announced it was using blockchain technology to ensure electric vehicle (EV) charging stations used sustainable sources to charge their electric cars. This decision is aimed at consumers who wish to validate that the energy used to charge their vehicles does not come from electric companies powered by brown coal or similar. BMW is said to be developing something similar.
In addition, energy giant Shell announced in June the launch of Avelia, a sustainable aviation fuel (SAF) solution for business travel. The project uses a public blockchain to promote and validate SAF, which can reduce lifecycle emissions by up to 80% compared to conventional jet fuel.
Many now foresee a blossoming partnership between environmentalists and blockchain developers, especially as Ethereum with its big merger, along with other networks, moves closer to zero carbon and even negative platforms in carbon.
"I continue to believe that putting the Paris Agreement carbon markets on Ethereum and connecting the world's national carbon accounts, is the app that kills blockchain," Joseph Pallant, Chief Innovation Officer climate at Ecotrust Canada and founder and executive director of the Blockchain for Climate Foundation, says Magazine.
But if this promise of a blockchain/ESG alliance is to materialize, some questions need to be answered, including:
Are public permissionless blockchains scalable enough to handle the amount of d...What's Your Reaction?
