Carbon Emissions are a Global Threat and Blockchain Technology Can Help Reduce Effects
How Blockchain Technology Can Reduce Global Carbon Emissions
Due to the adverse impacts of the global warming, humans have been forced to seek mechanisms for reducing carbon emissions, the leading cause of this climatic change. Blockchain technology can contribute towards this goal.
Although cryptocurrencies have several advantages, they also come with a fair share of baggage. According to research, digital currency mining consumes huge amounts of energy, a factor that contributes to the increase in carbon emission levels. Stanford University’s Jonathan Kooney. Jonathan stated that the studies are not extensive enough to issue a conclusive report on the amount of energy consumed by crypto mining.
Nevertheless, many people still believe in the ability of blockchain technology to reduce carbon emissions. Through its decentralization feature, this technology can open up the carbon markets to a wider range of players, thereby accelerating the transition towards a low carbon economy.
The Role Of Blockchain In Combating Carbon Emission Rates
Presently, the main method deployed in curbing the volume of carbon emissions is the enactment of legal agreements and compliance mechanism. Countries are expected to sign these protocols and adhere to them by adopting an eco-friendly approach in their industrialization endeavors.
At the beginning of the year, the United Nations established the Climate Change Coalition (CCC), an organization designed to study and research how blockchain technology can contribute towards the curbing of climatic changes. The role of CCC members will be to assess blockchains and test its use cases through the conduction of pilot projects.
Additionally, the UN has also been deliberating on the Paris Agreement, with a majority of members criticizing the deal. Article 6.2 of the agreement suggest the creation of a universal system that checks the crab on carbon emissions rates of individual member countries as part of the larger Internationally Transferred Mitigation Outcomes scheme.
As a result, some companies, such as the Canadian-based Blockchain for Climate Foundation (BFC), are looking to leverage blockchain to meet this objective.
According to BFC’s founder, Joseph Pallant, his company aims to accelerate the realization of this goal by using Ethereum-based smart contracts to keep track of carbon emissions. Each token will have sufficient data such that everybody can verify the origin and eligibility of each ton of emissions reduction.
Furthermore, BFC will create unique fungible tokens that enable the carbon credits to be easily verifiable.
Shifting To A Low Carbon Economy
On the other hand, albeit a few, some companies are contemplating the possibility of tokenizing carbon offset credits. One such institution is Veridium, which has partnered with IBM to actualize this program on the Stellar blockchain network. Given that the acquisition of conventional carbon credits is cumbersome, Veridium’s director, Jim Procanik, believes that blockchain can streamline this process.
Similar to Veridium, Poseidon is using the Stellar network to ease entry into the carbon credits market. This project has already protected over 4,000 trees.