The technology behind blockchain certainly has the capacity to drive a sustainable future if used correctly.
From cutting down paper wastage through to reducing energy consumption, the blockchain revolution is making its mark.
Here, we break down the basics of how blockchain and sustainability could shape the future.
What is blockchain?
Before we begin, we should take a moment to cover what exactly a blockchain is.
A blockchain is a form of distributed ledger technology (DLT). Primarily, a blockchain is an immutable ledger, which means it cannot be retroactively changed. This helps ensure complete transparency, since all the data will be legitimate and verified.
In the scope of cryptocurrency, data miners verify the information before it is uploaded to a blockchain. A similar process would be required to ensure that blockchain technology only presents verified information in any industry.
Furthermore, blockchains function on a peer-to-peer (P2P) basis. The main benefit of a P2P system is that the blockchain is available for everyone in the network.
So, even if one bad egg managed to change the blockchain, it would only be changed for them. The rest of the network will be able to see the ‘true’ copy of the chain, reducing the possibility of hacking and data manipulation.
Reducing energy prices
Blockchain technology is designed to be decentralised, which helps ensure that no singular authority can have control over the network.
One benefit of a decentralised system in the energy sector is that it can help lower energy prices, such as electricity costs.
This is because much of the energy sector currently functions through a centralised authority. In a centralised system, the governing authority dictates prices and rates.
Without a central authority figure to govern prices, the prices can be lowered and controlled by the masses who support the network.
Also, rather than paying fixed rates for a fixed amount of electricity, with blockchain, you could potentially only purchase the exact amount you need.
Facilitating peer-to-peer energy trades
Blockchain technology grew in popularity thanks to the rise of cryptocurrency. This is because cryptocurrencies are traded on blockchains.
The same trading principles can be applied to the energy sector as well. For instance, electricity could be turned into a tradeable asset. In this case, if you were running low on electricity, you would just need to find a seller who deals with electricity as a commodity and pay for some more.
This would not be limited to electricity either. It could also be used to turn gas into a commodity.
Saving the trees
Blockchain could make an earnest effort to reduce the amount of trees being cut down for paper.
A lot of processes that involve records of any kind (credentials, medical records, and so on) still require an element of manual work. However, since a blockchain is a database, all of these records can be kept both securely and safely on a blockchain.
This in turn can reduce the amount of paper wastage that occurs on a daily basis.
Ethical sourcing
As blockchain technology continues to work its way into the mainstream, we have seen many global companies begin exploring blockchain.
For instance, Ford Motor Company and WWF Australia have already begun testing implementations of blockchain technology.
The test implementations are centred on using blockchain to track their respective supply chains. In doing so, both Ford and WWF Australia are hoping to mitigate against the unethical sourcing of minerals and resources.
Since supply chains, particularly for global companies, require many steps across many countries, it can be difficult to ensure each step is met with precision.
However, with this type of technology, companies can track the entire process to ensure no wrongdoings occur.
Digital distribution
We are currently living in the era of digitisation. Music is just one aspect of the digital revolution. While it is somewhat nostalgic to own a CD, not many people listen to them anymore.
If you can distribute cryptocurrency over a blockchain, you could certainly distribute digital music on one too.
Many record labels still want to generate revenue through sales, and not necessarily through streaming platforms. However, if they switch to digital distribution, a lot of money could be saved. This is because the creation of physical products would no longer be necessary. This would also cut down the amount of plastic and paper required for production.
Digital distribution isn’t limited to music either. Any product that could be distributed without the need of a physical item could switch to using blockchain.
You can discover more about why the music industry should be paying attention to blockchain technology here.
Blockchain and sustainability is the future
You should now see the potential of blockchain technology in terms of sustainability. It could offer so much more than what is currently available.
It isn’t just a buzzword used to generate hype, like it is so commonly used in the crypto space. It is real technology that has real-world implications.
The implications are far reaching, and we haven’t even scratched the surface of what blockchain can do.
With more and more businesses investing in blockchain and sustainability, the future may well be closer than we thought.
Interested to read more about the blockchain revolution? Discover more about blockchain in healthcare and blockchain in the energy sector here on Coin Rivet.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.