Introduction
A digital ledger technology called blockchain is well-known for being used in cryptocurrency. The technology, which was first used in 2008 to act as a public transaction ledger for Bitcoin, has since given rise to hundreds of cryptocurrencies (such as Ethereum, Ripple, NEO, and Litecoin), as well as having other cutting-edge applications in a variety of fields, such as supply chains, digital content, patents, smart contracts, governance, and e-voting. Blockchain ledgers are decentralised and transparent, in contrast to the traditional ledgers that banks and governments have used for decades that are centralised and inaccessible (EPRS, 2017). The management of the ledger, including its exclusive storage, updating, and transaction verification, is not carried out by a single central authority. Contrarily, a copy of the ledger is held by each member of the blockchain network. The Write For Us Blockchain category is where you can share your views.
Impact on Environment
With its promise to transform sectors including finance, healthcare, and supply chain management, blockchain technology has grown in popularity in recent years. Concerns concerning blockchain's environmental impact exist, though, as with any new technology. There are concerns regarding whether blockchain technology is long-term sustainable given its high energy consumption and e-waste problems. However, there are also ways that blockchain technology might aid environmental preservation. Blockchain, for instance, can be utilised to monitor carbon emissions and encourage sustainable supply chain management practises. Additionally, it can be used to motivate people and companies to adopt ecologically friendly habits, including lowering energy use or recycling.
While blockchain technology has a lot of potential advantages, there are some environmental disadvantages as well. The energy consumption needed to run the decentralised network of computers that makes up the blockchain is one of the biggest issues. Mining is the process of adding new transactions to the blockchain and validating existing ones; it uses a lot of processing power. According to a PwC estimate, the amount of energy needed to run the Bitcoin network alone is comparable to Switzerland's total energy consumption. The greenhouse gas emissions are a result of this energy use.
Conclusion
Blockchain is gaining ground as more people consider utilising digital technology to hasten action on problems like climate change and biodiversity loss. Blockchain is a decentralised, digitally distributed ledger that aids in the verification and tracing of complex transactions. Although it may be best recognised as the architecture of digital currencies like Bitcoin, it is currently being used for a variety of purposes, including tracking the sustainability of products and real-time environmental monitoring.
Several companies have started to explore the potential of blockchain, including the Australian software firm Power Ledger. By determining pricing in real time and carrying out transactions over blockchain, the company created a trial project in the Indian state of Uttar Pradesh that permitted homeowners with solar arrays on their rooftops to sell power to others on the grid. Such systems can aid in developing nations' rapid adoption of renewable energy sources and assist states in phasing out unsustainable electricity subsidies.