According to the WMO report, temperatures have reached a higher level due to the carbon pollution created by us. The report revealed that the last three decades had been comparatively warmer than any preceding decade. In 2018, The World Economic Forum recognized 65 use cases of blockchain technology that has the potential to overcome major environmental challenges. Through this initiative, the forum aims to encourage socially responsible blockchain applications. But, can blockchain save the planet & truly benefit the environment for good, or is it just a marketing pitch by blockchain enthusiasts?
We identified compelling ways where blockchain can serve as an environmental game-changer.
Encouraging Circular Economy
A study by The Ellen MacArthur Foundation, in collaboration with the World Economic Forum, revealed that there will be more plastic than fish in the world’s oceans by 2025. According to the report, the use of plastic worldwide has increased twenty times in the past 50 years. Blockchain-powered applications are deployed to reward individuals with cryptocurrencies in exchange for garbage. Full Circle Coin has provided a blockchain solution that issues a virtual coin in return for depositing recyclable household items. The collected coins can be used, as discounts, on the FCC store for buying goods, including groceries, clothes, etc. To read more about this solution, click right here.
Another blockchain application that incentivizes the move towards a circular economy is Green Secure. It is an extended producer responsibility system that covers the complete life cycle. As it begins from an enterprise requesting to collect its industrial waste to recyclers taking it to the plant for segregation, recycling, or disposal. Corresponding evidence and information on waste destruction is provided to companies by recyclers in a reliable and optimum manner. Smart contracts on blockchain significantly enhance the transparency, efficiency, and scalability of this process. This platform is developed by Reactive Space.
Streamlined Resource Management
Blockchain has the power to form clean and resource-efficient energy and water systems. Currently, centralized authorities and retail-level users make uninformed decisions. Blockchain-based platforms can resolve this issue by enabling more-informed decision making as the information stored on blockchain is traceable, transparent and immutable. This means, renewable energy resources, P2P trading and dynamic pricing will be traceable and verified.
Monitoring, Reporting and Verification
Enterprises encounter severe pressure from governments, clients, and stakeholders to demonstrate durable business models. This will be done to prove that they are environmentally friendly. Sustainable reporting and quality assurance of environmental practices are essential features for good management. Blockchain has the power to help businesses manage, administer, and improve their environmental performance through sustainable reporting and assurance. Moreover, blockchain platforms provide correct information to support an entity’s environmental strategic objectives.
Blockchain smart contracts help to access real-time data and prevent fraud. Better Greenhouse gas accounting through blockchain will be achieved to grow the efficiency of carbon taxation as its performance is unexpected on transparent GHG emissions data.
Transparent Supply Chains
Blockchain offers to store supply chain transactions that create an unchangeable record of product’s origin. Blockchain solutions in the environment allow additional visibility in cash flow and production lines to assist small producers in controlling their business products. For Example, a distributed ledger delivers a crystal-clear audit trail that allows businesses to be more confident that their material comes from reliable producers.
Real-time Disaster Relief and Preparation
With the growing number of natural crises, the demand for better real-time relief response management also increases, e.g providing financial support rapidly to areas where it is much-needed. Blockchain has immense potential to drive the Fourth Industrial Revolution by boosting disaster preparedness and relief effectiveness. IBM blockchain has initiated a competition called “Call for Code” for developers around the globe to create new technology applications for better natural disaster preparedness, response, and recovery.
Blockchain creates new opportunities for existing, faulty processes and systems. However, the correct implementation, execution, and maintenance are necessary measures to ensure its positive impact on the environment. That being said, consult Reactive Space for the right blockchain solutions which conduct complete market research to find out client’s existing problems and develop the right solutions to boost business revenue.