Use blockchain tech to go green

NEW DELHI: As, the world talks about ESG - environment, sustainability and governance and constantly looks for solutions in this space, we speak of technology as an enabler and blockchain as a tool to help mitigate several issues.

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

But, surprisingly, it’s quite the contrary as issues like climate change, degradation of the biosphere, water scarcity, and other environmental problems can all be mitigated by leveraging blockchain technology. Let’s explore a few here.

Environmental monitoring is a critical area and blockchain is playing a major 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 that affects millions of people around the world.

In order 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 low-cost air quality sensors.

The network of sensors is the first global, immutable ledger of air quality measurements and they have deployed 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 preparation and relief, enhancing the efficiency, effectiveness, coordination, and trust of resources.

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

This could facilitate the rapid mobilisation of newly available resources, the automatic re-routing of supply chains, and the improved coordination of relief agency responses to disasters.

SEA.earth is a case in point as it strives to create positive environmental impact using blockchain technology.

Rewards for recycling is another great use case. Plastic garbage is one of the most damaging types of trash to the environment.

Researches predict that by 2100, the amount of garbage produced worldwide will have increased by 4 million tonnes! The world’s water supplies are hopelessly polluted.

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

Programmes like these are helpful as they provide an incentive to recycle trash by turning that trash into cash, which is especially useful in less developed nations.

The number of offsets sold on the global carbon credit market has been increasing 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 transact in the purchase of certified carbon offsets.

Blockchain technology can also support corporate efforts to improve their environmental performance. Businesses can use this to offset their carbon footprint and invest in climate change initiatives.

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

Properly leveraged, blockchain technology will help us move towards decentralised solutions that are less wasteful of our resources, help access previously locked-up natural capital, and give voice to underserved communities.

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

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