With several environmental difficulties coming up across the world, businesses, societies and the world are highly looking for different ways to decrease the environmental effects and contribute to sustainable development. In this post, we will know how blockchain technology can contribute to sustainable development and environmental protection. Starting from enhancing supply chain transparency to allowing more sustainable business models, blockchain can provide several advantages to businesses that want to attain sustainability goals, primarily in a way of safety, sustainability and inclusions.

About Blockchain

A blockchain is a chain of ordered records known as blocks with each block having transaction data, a hexadecimal number and a timestamp that acts as a cryptographic hashtag. These blocks are interlinked chronologically and safely, forming a chain and thus the name “blockchain”.

The blockchain functions on a distributed network of devices known as nodes. Every node has a copy of the complete blockchain, thereby making sure that there is no one point of failure or control. Blockchain transactions are safe through cryptographic methods and are immutable.

About Sustainability

Sustainability primarily involves preserving ecological, social and economic systems in such a way that it makes sure there is viability and resilience in the long term. Sustainability can be environmental and focuses on responsible stewardship of natural resources, emphasizing access to resources, labor practice and justice.

Sustainable practices can increase the reputation and viability of a company. Some companies practice greenwashing, claiming eco friendly practices and do not genuinely integrate sustainable principles into operations. Actual sustainable development follows UN sustainable development goals that address problems like poverty, hunger and gender inequality.

For the achievement of these goals, government, and non-profit organizations including citizens should work to advocate change, support good labor, remain abiding by sensible emission standards and get engaged in practices of community development.

Blockchain sustainable practices

Life cycle assessment

This indulges everyone in the ecosystem to trace the pathway of all products and their effect on the environment right from cradle to grave and then again back to cradle in the circular model. Blockchain with its capability to capture and keep data offers a great solution for tracking and displaying such data so that no one can tamper with data for their purposes. Such joint group acts relying on technology and quality of blockchain, along with other supervising technologies like IoT and AI will move businesses on the path to environmental sustainability and a circular, regenerating economy.

Transparency of supply chain and safety

Blockchain allows businesses to keep track of the origin and product lifecycle, making sure there is great transparency, safety and dependability in supply chain operations. By doing so, customers get a good assurance of the ethical origins of the product, the process that takes place while managing those products and the security and origin of the products that they consume.

Sustainable models of businesses

Blockchain technology allows the development of sustainable business models through the incentivization of ESG-based behavior by using smart contracts and tokenization. Data about materials, energy inputs, sourcing data and sustainability initiatives are kinds of value that can be unlocked through blockchain. For instance, a customer who earns loyalty points by buying a beverage can be offered more tokens for adapting sustainable actions for the company.

Creation and trading of carbon credit

Blockchain technology can with a high degree of accuracy keep a record of data that allows the formation of carbon credits which are the certificates representing the reduction of one ton of carbon dioxide emissions. Because of data verifiability as well as immutability that causes the creation of blockchain-based carbon credits, the value of such credits is higher than those that are not created by making use of blockchain technology for recording environmental and societal advantages.

Green energy management

Blockchain technology allows management and supervision of renewable energy creation and its consumption. This blockchain green technology allows the incorporation of renewable sources of energy into the grid and decreases the dependency on fossil fuels. By changing from centralized to decentralized paradigms of energy distribution, renewables can be flawlessly incorporated into energy grids. Localized and reliable pricing mechanisms go well with a perfectly distributed approach, efficiently managing the unpredictability of the supply and congestion in the network to make sure there is an effective distribution of energy.

Some other examples of blockchain for sustainable development and environmental protection are

• Blockchain can keep track of waste disposal and recycling activities enhancing waste management and decreasing impact on the environment.This is one of the major blockchain environmental impacts.
• Blockchain can increase the tracking and sustainability of the extraction of natural resources.
• Blockchain assists in the development of smart cities with sustainable infrastructure that causes optimization of energy use, management of waste and also transportation.

Conclusion

To conclude, blockchain aims to solve some of the common problems and that is the tragedy of commons, where several common pool resources and the power for using and exploiting them are held in the hands of some. With a proper understanding of the extent of technological applications of the blockchain, we can better employ them for sustainable development and environmental protection.