A Silicon Valley company, backed by wealthy individuals like Jeff Bezos and Elon Musk, has taken off research across Greenland for important minerals such as nickel or cobalt – after the ice has melted in the respective regions. They concluded that there would be no more glaciers in the next 20-30 years. As a result, southern Europe suffers from spreading fires yearly; the Amazon forests are dying, and many places are dried up and running out of water.
Crypto adoption can benefit from this point of view because the system represents not only a financial change – but a general and technical change, so it can improve both the living standard and the problems we’re facing in the fight against climate change. The infrastructure built around crypto adoption is modern enough to fight the climate crisis we’re facing today. In the following paragraphs, we’re explaining how.
Where are we situated with the climate crisis?
Year after year, we reach unprecedented numbers and statistics: the Arctic is melting while ocean and sea levels are rising all over the world, with a large population facing scarcity of drinking water (which represents only 1% of the global water surface). Non-potable water levels are growing around the globe, and the forests are slowly dying. At the same time, world agriculture still adopts land burning as a regeneration method. This archaic and expensive method will lead over time to devastating effects on the environment.
The issues surrounding the crypto adoption
Cryptocurrency mining through Proof-of-Work uses an enormous computational power, as well as performing computers that require a lot of electricity that solve complex mathematical problems – and the Bitcoin price suffered once with the energetic problems across the world (that started with civil problems in Myanmar and with the energy crisis that happened in Afghanistan). You need high-performance, expensive, and power-consuming equipment to solve complex and challenging cryptography puzzles.
The high use of electricity is the reason why the cryptocurrency market is classified as “polluting,” but things are transforming for the better: the changes made over time to Blockchain’s technology and development, the emergence of the Proof-of-Stake consensus also used by Ethereum among other currencies – a mechanism that uses staked coins to validate transactions instead of consuming electric power.
Proof-of-Stake technology is much more eco-friendly as a consensus mechanism, and its improvements have further transformed the technical nature of crypto adoption. Blockchain, as a technology, has tremendously advanced so that it can be used at the core of many commercial activities that society needs on a daily basis.
How can Blockchain technology help the environment?
Blockchain is a decentralized technology where any type of transaction takes place from peer-to-peer, from one individual to another, without the need for an intervention from a third party or an intermediary in the process. If all the procedures we know and utilize become decentralized – a lot of waste and pollution would be reduced or even eliminated.
Along with them, many costs are eradicated- this is the main reason why many companies are looking to work on compatible Blockchain solutions that suit their business model. For example, within a supply chain, they can track in real-time the used fuels and gas emissions – and it will be much easier to report greenhouse emissions from economic activities.
The nature of a Blockchain network is transparent and immutable, and through Smart Contracts that are auto-executable, we can easily implement methods by which we can reduce these emissions. Further, more precise reports may emerge, available at any time, related to these results.
Crypto adoption would greatly help renewable energy, and it could control solar plantations or wind farms by distributing power across houses, urban blocks, or companies – depending on their needs, calculating the invoices simultaneously. The impact would be significant in agriculture: irrigation and other essential companies can be automatically started from such a system and may stop depending on the soil’s moisture and humidity. Thus, people and companies can use Blockchain technology and crypto adoption to save water and manage electricity for a sustainable way of life.
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