Global warming is at an alarming stage and sustainability has been the core focus for many institutions; in order to tackle the crisis. Catering to the rising concern, the innovation of blockchain technology and its application in various sectors has been a potential solution for many. For example; the transition of Ethereum to Proof of Stake consensus mechanism is to deliver a decrease in 0.2% of the world’s carbon footprint!
Similarly, various other ways to put blockchain technology in use are slated to play an important role in helping various organizations reduce greenhouse gas emissions.
In 2015, about 196 countries signed an agreement, commonly known as the Paris Agreement, making a commitment to sustainability and using greener fuels to propel the climate change agenda. According to an analysis done by Climate Watch using raw data from the International Energy Agency (IEA) about 40% of the energy consumption and greenhouse gas emissions is being contributed by businesses and consumers alike in office and residential spaces. The result of the research conducted has brought into focus the requirement to adopt more efficient technology solutions. Sectors in the field of business processing, industrial processes or even managing energy consumption in building spaces are now actively looking for more greener solutions.
One of the most important players that bring solutions to the table is the usage of Blockchain technology; according to TraceX Technologies. According to the blog post from TraceX Technologies; “blockchain can play an important role in helping organizations across the world achieve net-zero carbon emissions and remains vital to the goal of reducing the average global carbon footprint from 4 tons to 2 tons by 2050.”
What is a Carbon Footprint?
In simple terms; carbon footprint measures the total amount of greenhouse gas (GHG) emissions that are associated with human production and consumption activities. However, in the case of a business organization, the carbon footprint is the amount of GHG emitted directly or indirectly due to its daily operations.
Source: Climate Watch
How Blockchain technology is improving efficiency
Blockchain technology is a form of distributed ledger technology or DLT that underpins most start-ups that are working towards building a Web3 ecosystem as we know it today. Besides its most popular use case in the crypto ecosystem, this revolutionary technology is also introducing and catering to a new collaborative approach to processing transactions. This varied usage of blockchain is slowly proving to be very useful in providing solutions of every kind in an increasingly connected world.
Starting from banking, logistics, the Internet of Things (IoT), healthcare, and even governmental functioning, blockchain technology has the potential to reduce the number of segments or parties involved in traditional systems. The possibility of reducing the number of steps that blockchain brings to the table, thereby also caters toward negating the need for human capital and eventually result in decreasing the amount of energy needed to facilitate various operations.
Blockchain technology’s ability to enable quick and smooth transactions within seconds to minutes all around the world also helps in reducing the action of building numerous office spaces along with saving the energy consumption of the same.