We always hear stories about how bad Bitcoin is for the environment, but have you ever considered how blockchain technology can go on to help us create more green energy initiatives?
The mining of cryptocurrencies like Bitcoin is a power-heavy process. In order to mine Bitcoin, you need to use an awful lot of energy, energy that is generally created by power stations using fossil fuels and other dangerous systems. These systems pollute the atmosphere and thus contribute to Bitcoin’s huge carbon footprint. Of course, some miners have taken to using renewable energy sources to fuel their mining operations, however this is costly so therefore, there’s no middle medium.
Blockchain technology does not always have to be harmful to the environment, in fact, blockchain tech actually promises to change the way we create energy, giving us the chance to go green and clean up some of the damage that fossil fuels have done to the planet.
Green Biz have published an article that discusses some of the ways blockchain technology can be used to save energy, including logistical tracking, the adoption of electronic vehicles and a change in the way energy companies keep records.
Logistical tracking involves using blockchain technology to trace the way products moves across the production line, from factories into shops, this is something that Maersk, a major ocean shipping company are currently exploring. The great thing about this is that using the blockchain, products can be made accountable and thus, waste is reduce. Because we can see where products have been and trace them in an intricate manner, the chance of products getting lost or broken will be reduced, meaning less products are wasted and less products need to be created.
According to Green Biz:
“A second blockchain application could spur the adoption of electric vehicles, which use considerably less energy than most gas-fueled vehicles. EVs need recharging to go long distances, and new software apps enable individuals to rent out their private charging stations. These apps use blockchain technology to record such peer-to-peer transactions. EV owners can use the rent revenue to cover the cost of their charging stations and cars, thus enabling more people to buy EVs and use less energy.”
As you can see, there are clear implications for blockchain technology with regards to how the blockchain can help us improve our environmental interactions. Of course, the blockchain can’t reverse climate change, but what it can do is help us reduce the impact we currently make on the environment.