Blockchain became famous as a system that represents a background for Bitcoin, Ethereum, and other popular crypto. There are many benefits of using it, such as increased capabilities of platforms, improved safety, and more.
A lot of companies are already interested in implementing it as a way to improve their services, and that is not related only to the acceptance of digital currencies. Many industries can benefit from blockchain. For example, safety is one of the key features for crypto online gamblers. Using a blockchain-based platform like Bodog is the perfect solution to secure the best experience while playing your favorite games.
On the other side, a lot of people these days are worried about ecology, and getting new regulations related to the reduction of carbon emissions and other toxic substances is the biggest trend lately. When it comes to the carbon footprint of blockchain, it depends on various factors. We will analyze more on this topic in the following article.
What is the Main Issue?
The main reason why so many people got interested in this technology in the first place is related to cryptocurrencies. The mining process is getting more complicated over time since the amount of tokens that you can get is lowering from time to time.
Miners need to upgrade their rigs to secure the right efficiency and profit in the end. That includes more energy consumption. The cost of electricity is now one of the main factors that can decide whether the mining process can become profitable in the end.
That leads to a problem where the biggest mining facilities are made in countries with cheaper electricity, and that power is made mostly by coal, which is the biggest pollutant today. From that perspective, the increased popularity of mining is leading to higher pollution and some research indicates that this sole activity could propel us towards a 2°C rise in global mean average temperatures over the next 30 years.
There are other environmental issues as well. For example, the hardware is advancing very fast, and most miners are looking for upgrading all the time to keep the efficiency. Still, that is leading to higher e-waste while the industry is not capable of recycling enough of that material.
Bitcoin is the most demanding blockchain-based unit, with a total consumption that is the same as a large country per year. In that matter, the only solution is to motivate more miners to switch to renewable resources like solar, wind, and water.
There are already some improvements seen in this field, such as the proof-of-stake model. It was introduced by Ethereum, and it quickly led to a reduction of nearly 100% of the demand for electricity. Also, it is a much faster and easier system.
It Can Be the Part of the Solution
While many people are addressing the high energy consumption, which is a problem when pollutants are used as a resource, there are some advanced capabilities of this system that can benefit the struggle of the whole world to reach a zero-emission stage.
The goal of many countries is to speed up this process, and there are planned regulations that will be introduced, which is called carbon credit tracking. This system can be adapted to both large companies and individuals, and the key is that those who are proven to be higher pollutants will have to pay higher taxes, while those who manage to keep the carbon footprint close to zero will be excluded from paying some taxes.
The main reason why blockchain is so important for this model is its accuracy and the ability to analyze large amounts of data very fast. Also, no one can alter any data that are added to the system. In that matter, trying to cover the real emission won’t be possible.
There are many other benefits. For instance, the ability to create advanced mechanisms that will help organizations to clean the oceans. It is not only about building new tools for cleaning, but also about improved platforms that will track the whole process, and make the financial management more accurate.
Besides that, it can help create better waste management that will prevent continual waste in different locations, especially when it comes to plastic and other toxic materials. Companies and individuals can easily become a part of such progress since everyone can easily track the advancements and efforts.
For example, a project can be presented through a blockchain model, and all investors can easily keep track of how their funds are being spent but also use it as proof of their contribution if needed, such as proof for tax benefits or to make your business compliable to new regulations that are expected.
In the future, many countries are working towards being carbon neutral by using clean and renewable energy sources. This will lead to the development of new systems that rely on this technology for transparency and accuracy. This will prevent the negative impact on the environment caused by blockchain.
When you combine that with a new model that will keep the stability of cryptocurrencies, like the proof-of-stake, the blockchain won’t have any negative effects on the environment at all.
The Bottom Line
As you can see, there are positive signs that we will manage to avoid the current mining challenges that require a lot of electricity. That is the biggest issue related to cryptocurrencies in the first place. Ethereum was the first one who make this step, and we expect other popular digital assets to follow that.
When it comes to the blockchain, it will become crucial as part of the advanced model that will help us deal with a climate crisis and reduce our carbon footprint. This process will take some time, but it will be much more efficient with platforms that can easily track and evaluate everyone about their emission.
In the end, it is essential for more countries to start going in the same direction as the EU, Canada, and the US, and that is especially related to China, India, and Russia, which are still highly dependent on coal and crude oil, and represent the biggest pollutants today.