In today's rapidly changing world, the pursuit of sustainability has become more critical than ever before. Fortunately, emerging technologies like blockchain are paving the way for transformative solutions. Blockchain, originally known for its association with cryptocurrencies, is now making waves in the realm of sustainability. This blog post explores the profound importance of blockchain in promoting sustainability, how this technology is driving positive change across industries, and how companies can leverage it to contribute to a bigger good in a sustainable way.
Industries and companies face numerous challenges in achieving their sustainability goals, such as supply chain transparency, accountability, and traceability issues. Fortunately, blockchain technology is disrupting various sectors by addressing these challenges hands-on.
For instance, in supply chain management, blockchain enables end-to-end traceability of products, ensuring sustainable sourcing, fair labor practices, and ethical production methods. In the energy sector, blockchain facilitates peer-to-peer energy trading, promoting the adoption of renewable energy sources. Moreover, blockchain-based systems are revolutionizing waste management, circular economy practices, and carbon footprint tracking, creating a more sustainable future.
The process of setting up and running a node to support a production-ready blockchain application has become increasingly resource-intensive, requiring costly hardware and regular infrastructure management. The resource-intensive nature of running blockchain nodes can have an impact on the environment, as it requires costly hardware and consumes large amounts of energy.
By relying on node providers, who can manage blockchain nodes in a more efficient manner, we can reduce the environmental impact of blockchain technology and make it more sustainable. Additionally, by quantifying the quality of these providers and choosing the most efficient and sustainable options, we can further reduce the environmental impact of our blockchain applications.
A study conducted by Quicknode, resulted in the top 3 fastest most fast node providers: The first being Quicknode, second Ankr, third Alchemy. You can see the whole study here.
Blockchain technology offers a myriad of benefits that drive positive change in sustainability efforts. Transparency and immutability are inherent characteristics of blockchain, providing stakeholders with a trustworthy and tamper-proof record of transactions.
A rating done recently by Green Crypto Research, has put blockchains on a scale of ESG risks. See the rating here.
The top 5 most sustainable ones are:
1- Tezos (XTZ): a smart contract platform that enables the deployment of dApps such as the NFT marketplace objkt.com. It has a proof-of-stake (PoS) consensus mechanism and can execute up to 1,000 transactions per second. Tezos uses a governance model that can change when upgrade proposals receive a positive community vote.
2- Avalanche (AVAX): a smart contract platform that enables the operation of dApps such as Aave or Trader Joe. It is based on proof-of-stake, strongly focused on energy efficiency, and validated by over 1,000 nodes.
3- Solana (SOL): a smart contract platform that enables the operation of dApps such as the Solend lending platform. It is the first and only project based on the proof-of-history consensus mechanism, which allows up to 50,000 transactions per second.
4- Cardano (ADA): is a proof-of-stake blockchain with the long-term vision of enabling economic participation for people in need.
5- Polygon (MATIC): is an Ethereum Virtual Machine (EVM) compatible smart contract platform that enables the deployment of dApps such as the game GAMEE, Sunflower Farmers, or the decentralized exchange QuickSwap. Polygon is a Layer 2 cryptocurrency with a less energy-intensive proof-of-stake consensus algorithm.
To truly leverage the power of blockchain for sustainability, companies and industries need to incorporate it into their strategies and operations. They can explore opportunities to implement blockchain in supply chain management, ensuring responsible sourcing, reducing environmental impact, and combatting issues like child labor and deforestation.
Blockchain can also enable sustainable finance and impact investing, where smart contracts automate agreements and ensure the transparent execution of sustainability-focused investments. Additionally, collaboration and partnerships among organizations are crucial to implementing shared blockchain platforms, creating robust networks that amplify sustainability efforts and maximize impact.
Cases that can illustrate this better:
PowerLedger: is a company that uses blockchain for peer-to-peer energy trading. As a software development company, they are committed to creating innovative solutions for clients and partners. Their primary focus lies in developing software systems that enable consumers and producers to track, trace, and trade every kilowatt of energy.
”Energy markets are changing fast. Powerledger’s technology creates the marketplace to keep customers connected to the grid and empowers them to control their energy future.”
Dr. Jemma Green
Executive Chairman & Co-founder • Powerledger
Climate Chain Coalition: is a global initiative that brings together blockchain experts and climate change professionals to explore the potential of blockchain technology for climate action. The CCC was launched in 2017 and has since grown to include more than 360 member organizations from around the world.
Plastic Bank: is a social enterprise that uses blockchain technology to create a circular economy for plastic waste. The company has created a system in which individuals can collect plastic waste and exchange it for digital tokens that can be used to purchase goods and services. By using blockchain technology, Plastic Bank is able to create a transparent and secure system for tracking the journey of plastic waste and incentivizing individuals to recycle.
Blockchain for Climate Foundation: is a BITMO platform that enables international collaboration, issuance, and exchange on climate action. They believe putting the Paris Agreement on the blockchain, connecting the national carbon accounts of the world is blockchain’s “killer app.” Deploying new blockchain tools to drive global collaboration on the urgent issue of climate change is the definition of innovation.
"Today’s world presents nearly unlimited opportunities to reduce greenhouse gas emissions, but has lacked a system to connect emissions reductions opportunity with capital and demand. Blockchain technology holds promise of manifesting a transparent, public and universal ledger, that can serve as a medium of exchange for emissions reductions outcomes."
Joseph Pallant
Founder & Executive Director
Blockchain & Climate Institute (BCI): is a progressive think tank providing leading expertise in the deployment of emerging technologies for climate and sustainability actions. As an international network of scientific and technological experts, BCI is at the forefront of innovative efforts, enabling technology transfers, to create a sustainable and clean global future.
Everledger: is a blockchain-based platform that enables companies to track the journey of diamonds and other valuable assets. By using a blockchain-based system, Everledger helps to ensure that diamonds and other assets are ethically sourced and produced, with minimal environmental impact and fair labor practices.
By embracing these eco-friendly blockchains, CEOs and their companies have a remarkable opportunity to align their core values with sustainable practices. The adoption of these blockchain platforms can result in reduced energy consumption, lower transaction costs, improved supply chain transparency, and enhanced corporate social responsibility.
Let's work towards a sustainable future and make a positive impact on the environment. Together, we can make a lasting impact and pave the way for a greener, more responsible business landscape 🌍💚.
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