As the non-fungible tokens the madness took off at the beginning of the year, many weather conscious artists he vocalized his disapproval of Ethereum’s power consumption. In May, Elon Musk derailed Bitcoin (BTC), citing the energy consumed by Bitcoin as the cause of Tesla to withdraw your plans to accept BTC as payment for your electric cars.
Both events have sparked a flurry of debate within and outside the blockchain community. In particular, the arguments tend to focus on two areas: Bitcoin’s energy consumption and its reliance on climate-damaging fossil fuels versus renewables, and secondly, the benefits of one blockchain platform over another, generally focusing on consensus models and promoting proof-of-stake as the greenest option.
Every debate is packed with arguments for both parties. If the IPCC is right, then the need for drastic action to help reverse some of the damage cannot be overstated. To do that, the focus should be on positive blockchain applications.
Leveraging the strengths of blockchain
One significant way that the blockchain’s impact is already substantial is in its ability to collectively generate large amounts of energy that would otherwise go to waste, added and reactivated for greater utility. Wasted energy crowdsourcing is in line with the principles of a circular economy, which eliminates the throwaway culture, to recirculate available resources as much as possible. And computing power is an example.
Whether it’s on a personal laptop or a business server outside of office hours, there’s a lot of idle computing power wasted on hardware, especially when it’s not in use. At the same time, there is a huge demand for computing power that is being met by companies like Amazon Web Services, which are continually building new data centers to meet this need.
Blockchain networks, such as Cudos’ decentralized cloud computing platform, redirect excess computing power from idle computers and make better use of it, reducing waste in the process. Other networks like Filecoin or Bluzelle focus on storage services, but the principle remains the same.
Decentralize the energy network
Other projects are using this concept to decentralize power grids. Brooklyn Microgrid is a hyperlocal initiative that allows solar energy “prosumers” (producers and consumers) to sell their surplus by funneling it to a microgrid where other participants can buy it. It’s the “act local, think global” kind of project that shows that anything is possible if you are willing to start from scratch.
In Vienna, the government had previously funded an initiative Allowing citizens to earn token-based rewards for identifying sources of heat waste that can be recycled into the power grid. A slightly different variation on the same decentralized theme, but uses the same principles of leveraging blockchain technology for the greater good.
Green credentials without trust
Blockchain technology also plays a fundamental role in providing transparency and accountability to governments and corporations for their role in fighting climate change. Transparency on ESG (Environmental, Social and Governance) matters is currently high on the CFOs’ agenda following the introduction of the EU Sustainable Finance Disclosure Regulation earlier this year. In its broadest terms, regulation requires banks and financial institutions to categorize their investment products according to their green credentials.
Using blockchain to store and verify this information would increase visibility and greatly increase the level of trust investors can place in products with ESG credentials. It is becoming easy to imagine a future where consumers and businesses can make decisions based on the algorithmic ESG ranking of any type of organization on the blockchain.
Being the “least bad” blockchain platform will no longer be enough, and the community is far from helpless when it comes to the climate emergency. You have powerful technology at your disposal, along with some of the best, brightest, and most innovative thought leaders in the world.
Clearly, blockchain technology can be applied to a myriad of positive use cases that give more to the green cause than they take away from it. And in doing so, blockchain technology makes a stronger argument for its applications in environmentalism than against it.
The views, thoughts and opinions expressed here are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Matt hawkins is the founder and CEO of Cudo Ventures, a global cloud computing and monetization software provider, and Cudos, a decentralized cloud computing network that bridges the gap between cloud and blockchain by recycling computing power. inactive world. He previously founded C4L in 2000, which was acquired in 2016 and was one of the UK’s fastest data center ISPs, supporting around 1% of the UK’s internet infrastructure, and was the winner of many fast-growing awards. including: The Sunday Times Tech Track 100, Deloitte UK Technology Fast 50 and Technology Fast 500 EMEA UK, and many more.