Blockchain media hype reached its peak in 2017 when “cryptomania” hit the trading markets. More recently, its focus has shifted to how it will be regulated. A survey revealed that more than four out of five executives (84%) reported their organisations had blockchain initiatives underway, with financial services leading the way.

Blockchain is far more important than digital finance, even as new technology. It also has the potential to change how we think about and handle the world’s most challenging environmental issues. However, few people are aware of the positive impact it could have on the environment. Blockchains can help reduce bureaucracy and fraud, increase transparency and democracy in organisations, track the origins and movements of products, and encourage people and institutions to adopt environmentally friendly practices. But here are 7 ways blockchain technology protects the environment you didn’t know about.

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Getting To Know What Blockchain Is

The blockchain is a distributed ledger that can be used to store transaction information and other types of data. Nobody owns it, and a copy of it is stored on many personal computers worldwide. Anyone can use it and contribute to the network’s operation. This frequently eliminates the need for intermediaries and enables users to interact on a peer-to-peer basis. It can also lower the costs for transactions and boost efficiency, same goes for Coinbase or Bitcoin Profit App as their brokers provide top-notch tools and relatively inexpensive costs. This type of network is hard to take down or corrupt because it is scattered.

Once a data record is created, it cannot be changed and remains in the ledger for an indefinite period and only after multiple computers have validated a new data record can it be added. This makes the data reliable without the need for a third party to authenticate it. Furthermore, the ledger is protected by advanced cryptography, making it difficult to tamper with.

• A Change in the Supply Chain

Most consumers tend to buy products manufactured in an ethical manner. However, finding that information is not always simple as products pass through several hands before reaching the store shelves. Companies can easily lie about how their products were made, what materials and chemicals were used, where their garbage is disposed of, or how fairly they treat their employees.

By making the supply chain more transparent and accessible, blockchain can help prevent waste inefficiency, fraud, and unethical practices by tracking products from the producer to the store shelf. They can also assist consumers in becoming more informed about how each product was manufactured and shipped, allowing them to make more environmentally friendly choices.

• Changing the Incentives

In a confusing environment, it can be hard for some people or businesses to see the direct consequences of their actions. As a result, the incentives to act in an environmentally sustainable manner are not always clear, particularly in the short term.

Blockchain technology can help people and organisations see the true impact of their actions and incentivise them to take environmentally friendly actions. The blockchain can be used to track a variety of data, such as the carbon footprint of each product, a factory’s greenhouse gas or waste emissions, or a company’s overall history of environmental compliance.

• Decentralised Resource Management

Blockchain can support a large-scale transition to decentralised, simple, and resource-efficient energy and water infrastructures. Platforms could aggregate dispersed data on these resources like household-level water and energy data collected with smart sensors. This is a game changer because many system decision-makers, both centralised authorities and users at the retail level, make decisions with incomplete data. Blockchain-enabled platforms may be able to overcome this and facilitate more knowledgeable and even decentralised decision-making about the administration of those resources or the broader system.

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• The Transformation of Carbon Markets

Blockchain platforms might offer cryptographic tokens with tradable values to enhance the carbon markets currently in place and open up new avenues for exchanging carbon credits. China’s “Carbon Credit Management Platform,” established by Energy Blockchain Labs and IBM, is an early pilot example. The goal is to increase the clarity, authenticity of data, and legitimacy of the Chinese carbon market by implementing smart contracts. In the future, blockchain could serve as the foundation for a global carbon trading market for individuals, households, or organisations.

• Improvement in Recycling

People are frequently discouraged from participating in recycling programs under current conditions. The commitment to running recycling programs frequently falls on each individual city, resulting in many places having no recycling programs at all. With that in mind, it can be quite difficult to quantify and compare the effectiveness of these programs.

A blockchain-based recycling program could encourage active participation by offering a financial incentive in the form of a cryptographic token in exchange for depositing recyclables such as cans, plastic containers, or bottles. Similar arrangements already exist in a number of locations around the world, most notably in Northern Europe.

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• Having Environmental Treaties

Tracking the true impact or compliance with environmental agreements can be challenging. And there isn’t always an opportunity for the government or corporations to deliver on their promises. Fraud and data manipulation also issues in this field. The administration of the global carbon credit system alone costs approximately $979 million per year.

The blockchain can be used to track environmental data in real-time and demonstrate whether or not agreements were met. Once information is entered into the public blockchain, it is permanently stored there. Using blockchain to track carbon credits and legal documents would reduce administrative costs while discouraging corporations and governments from breaking environmental promises or misreporting progress.

• Automated Disaster Preparation and Relief

Blockchain could serve as the foundation for a new unified system for various parties involved in emergency disaster preparation and relief to improve resource productivity, efficiency, synchronisation, and trust. A well-designed system could allow a diverse set of entities to automatically share critical information in the event of a disaster via smart contracts. This could, for example, allow emerging resources to be mobilised more rapidly and easily, automatically redirect supply chains, and allow relief agencies to coordinate their attempts in response to emergencies better.

Source: Plato Data Intelligence: Platodata.ai