Many of us are aware of the current situation of our beloved planet earth and of that global warming is one of the serious issues since from the start. Science and technology have helped both ways in the degradation of our planet earth as well as in a positive way too.
In this blog we are going to talk about Cryptocurrency and does it result in climate change or not? I
am very sure that most of us are still unaware of the term Cryptocurrency or maybe few of us already know about it. Let’s clear what it actually is and know its pros and cons.
DDI Editor’s Pick — Certified Cryptocurrency Expert
What is Cryptocurrency?
In simple words, Cryptocurrency is a virtual or digital currency that takes help of cryptography for security. The whole cryptocurrency process works most importantly on blockchain technology. The most famous cryptocurrency is Bitcoin which was the first blockchain based cryptocurrency introduced. As of now, there are thousands of alternatives of Bitcoins also known as “altcoins” working in the world. Of them, the most familiar are Ethereum, EOS, and Cardano all of these holds the aggregate value of over $120 billion. Bitcoin holds 50% of all.
Cryptocurrency doesn’t have any centralized authority for controlling the transactions. Each cryptocurrency functions through distributed ledger technology, usually a blockchain that serves as a public financial transaction database.
This whole process and as per the future need, it requires a huge amount of electricity, which is why many types of research have been conducted in the past on bitcoin. As per the researches, it was concluded that due to the use of high level of electricity in the bitcoin it has resulted in climate change. As soon as this research was claimed steps were taken by many cryptocurrencies in order to save our planet earth.
What possible steps are taken or can be taken?
After this whole scenario, the possible steps that are taken are the use of renewable energy instead of fossil fuel energy. It’s right the cryptocurrencies can use solar energy or windmill energy in order to produce a large amount of electricity. Few have already started and few have also opted for thermal power plant projects in order to save the planet earth from serious issues like global warming.
Do you know blockchain technology can fight climate change?
Blockchain technology is one of the important parts of cryptocurrency without which the cryptocurrencies wouldn’t be able to perform at all. Bitcoin was the first to introduce this technology to the world and no doubt it is famous.
Now you might be wondering how blockchain technology is going to help us against climate change? Well, Humans with the help of science and technology have served and helped the world in various ways. Blockchain technology might not be familiar to many of us still but you won’t believe that it has already taken into consideration in many European countries already.
Let’s study in depth more than how this technology which is used as a list of records in the cryptocurrency can help us fighting the climate change.
Blockchain was invented by the founder of bitcoin in 2008 in order to serve as the public transaction ledger of the cryptocurrency bitcoin. Blockchain plays an important role in the formation of digital currency that works without any central server or trusted authority. The primary use of this technology is to record transactions or as a distributed ledger for cryptocurrencies.
There are three types of blockchains.
• Public Blockchains
As per the name, it suggests that it is a blockchain that is open source and the public to all where no one is in charge. There is no rights or access management done for a public blockchain and anyone can be a part of the consensus. The most common examples of public blockchains are bitcoin and Litecoin.
• Private Blockchains
Goes with its phrase private this blockchain is opposite of the public blockchain. It is because every function that is open for all on a public blockchain aren’t open here to all. The best example of this private blockchain is Bank chain.
• Consortium Blockchain
Consortium blockchain differs from their counterparts public blockchains in that they are permission, but not just anyone with an internet connection could get access to a consortium blockchain. Hence, they are also known as semi-decentralized. Cryptocurrencies like Quorum and Corda are best examples of Consortium Blockchain.
After reading the above paragraphs I am sure that you are aware of this blockchain technology is, Now let’s know how does blockchain technology help fight against climate change?
While the UN Climate Change Conference, a lot of attention was put to the blockchain. Mostly for the protection of the data as it is regularly verified by its user and it’s a distributed database. Every information in the blockchain is kept on multiple blocks or servers. It is impossible to make a change in one block without others. Thus, it makes it being used by multiple parties, but with solid protection. All these pros make blockchain very useful in climate change tackling.
Where it can be applied?
The most noticeable and important thing about blockchain was its provision of transparency. Which makes it easier for different parties and structure trading data to perform. This information will help to discover waste quotas and find a way to cut them.
With blockchain, we can avoid some energy trading drawbacks. The system can make certification processes easy and make small trades possible. Energy producers will get a chance to set their own value despite big corporations. Experts conclude blockchain can put green power in the hands of consumers. And already we have an interesting example.
The Netherlands, as an example, is operating on a new European Waste Transportation. This whole new operation is using blockchain technology. The supervisor of waste transportation in the EU is going to apply this process. Blockchain system will promise real-time control for all government companies and bodies. Also, it can free up human resources for more disputed tasks.
From all the above words and facts, we can conclude that, although the use of cryptocurrency has proved harmful for our climate, we can also help it in many ways. Blockchain technology, which is an important part of cryptocurrency, can help in fighting against climate change.
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Cryptocurrency for Climate Change was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.