How Blockchain Could Create Incentives to Protect the Environment
The application of blockchain technology extends from the corporate world to governance. Some vital features of blockchain make it a suitable technology for managing significant global issues. Environmental sustainability is one of the major global problems in our world today and blockchain has shown the potential for protecting the environment.
Blockchain allows the management of a significant volume of transactions in the shortest time possible. Blockchain also provides high-level security and privacy of transactions. These are some of the features that can be applied to creating incentives for environmental sustainability with blockchain.
Applying blockchain in protecting the environment involves tackling specific issues and processes, which include those highlighted below.
- Supply chain management: Blockchain processes a large volume of data in no time. This feature can be applied in supply chain management for monitoring and tracking organic foods. It’s easy for organizations to label their products are completely organic when there is no way to confirm such claims. Organizations can also claim to dispose of waste responsibly. With blockchain, tools for monitoring and tracking foods and products are developed. Such tools could be apps that track different stages of manufacturing and supplying of foods.
- Energy supply: Blockchain can be applied in curbing the losses associated with the transfer of energy. Current energy supply systems are centralized, leading to the transfer of power across long distances. With the application of a peer-to-peer system powered by blockchain, energy would be distributed more effectively. Excess energy would be transferred to deficient locations within a locality, leading to the most efficient use of energy.
- Carbon tax: The carbon emission of a product is a feature that should influence the buying decision of consumers. However, such information is not readily available because of the lack of required tools and structures. Blockchain-based reputation systems can classify the carbon footprint of products. Such tools would track the carbon footprints of products and available consumers of the information. When consumers compare the effect of a product on the environment with the price, they are more likely to make decisions towards saving the environment. Manufacturers will thus adjust their processes towards environmental sustainability. Blockchain is especially suitable for this purpose because information cannot be tampered.
- Incentive for change: Although there is strong advocacy on making positive changes in lifestyle habits to protect the environment, little data on the actual impacts are available. Blockchain can solve the critical issue by providing data on how actions and inactions impact the environment in different ways. Individuals and organizations will be inspired to make better choices when informed of the direct consequences of their activities on the environment. Such specific information will enhance the causes of organizations that advocate for green and sustainable living. Blockchain can also be applied in managing the bureaucracy involved in advocating for a sustainable bureaucracy. Environmental treaties can be created with blockchain to eliminate the significant administrative backlog.
Conclusion
In advocating and creating a sustainable environment and protecting the earth, the application of the best form of technology is necessary and blockchain is currently that needed technology.
Alexandre Rigaud
https://medium.com/@alexrgd
