To Shirendra Shin Lao
Crypto has been in the limelight as a new asset class for some time. Blockchain, a hot topic in the tech world, has created hundreds of cryptocurrencies since its introduction in 2008. Today, blockchain has become synonymous with cryptography, and both are often used interchangeably. It’s important to remember that blockchain is like a digital ledger of transactions that spans your computer’s network and can be deployed in different areas like any other technology. Cryptocurrencies, on the other hand, are decentralized digital currencies that users can use to buy.
One of the hottest technologies, blockchain is seen as a future technology with the ability to transform industries such as banking, cybersecurity, intellectual and healthcare. Since the data, it is considered one of the safest ways to store the data. It cannot be changed on the blockchain.
Bitcoin, one of the most valuable cryptocurrencies, was one of the first applications of blockchain technology. Recently, both Bitcoin and blockchain have been on fire, and environmentalists around the world are worried that they are helping to increase carbon emissions. It has been argued that cryptocurrency mining has a large amount of energy consumption, leading to increased carbon dioxide emissions. This is not entirely true as companies use renewable energy sources in their mining industry.
Both blockchain technology and cryptocurrencies have the potential to make the future more environmentally friendly.
Environmental benefits of blockchain
The United Nations Environment Program suggests that blockchain technology has the potential to solve some of the environmental problems that the planet faces today. This technology can be implemented in a variety of environmental initiatives, as understood by policy makers, scientists and blockchain solution developers.
The ability of blockchain to maintain records, transparency, value transfer and tokenized ecosystems will enable us to address environmental issues such as air pollution, marine sustainability and biodiversity conservation. .. We provide a more environmentally friendly alternative. It enables the development of decentralized apps that have a positive impact on the environment, such as Ethereum. This includes applications such as supply chain management, recycling, energy, environmental treaties, environmental charities, and carbon taxes.
Make cryptos sustainable
Cryptocurrencies also have the opportunity to be environmentally friendly with carbon offsets. What is a carbon offset? Credits can be purchased by businesses to reduce carbon dioxide emissions. One carbon credit is a digital certificate issued by a company.
Or environmental projects have avoided emissions (pollution) of 1 ton of CO2 or equivalent greenhouse gases in a particular year. If the number of carbon credits is the same as the carbon footprint, the company is carbon neutral.
Cryptocurrency offsets can turn into an essential climate mitigation tool. Currently, there are some examples of green cryptocurrencies in the world market. For example, minting each unit of Bitcoin Zero built on the Bitcoin network will generate 10 tonnes of carbon credits using the REDD + project, offsetting the carbon footprint of each token.
Conclusion
Blockchain and crypto have many scopes for transforming the world by addressing larger global challenges such as the environment, energy and infrastructure. What is needed is a deeper understanding of technology and how it can be used to serve humanity. Cryptocurrencies and carbon credits via blockchain can be used to reduce or offset current emissions, remove previous emissions from the atmosphere, reverse climate change and avoid its dire consequences. increase.
The author is the founder and chief executive officer
