Blockchain can be a Vital Tool to Boost Sustainability
Another significant advantage of blockchain technology is that it can guarantee transparency. Simply put, blockchain keeps track of who buys what from whom. It means that claims that firms are resource-positive and minimize their environmental effect may be challenged and validated. #ThinkWithNiche
Our actions have a negative influence on the globe and expanding human population, and consumption rates are putting a strain on the planet's resources. Worse yet, urbanization, industrialization, and contemporary farming techniques are rapidly damaging the environment and depleting critical natural resources.
Another concern is global warming. By 2050, the Earth is expected to be 2°C warmer, and the world’s largest ice sheets are dissolving at considerably faster rates than in the previous century, leading to increasing ocean levels. Meanwhile, the globe is shedding most of its diversity, which scientists believe will have "unprecedented and unforeseeable" effects on life on earth. In light of all of this, global sustainability measures are more important than ever. Fortunately, advanced technology techniques may be used to address the most critical challenges. Blockchain is one technology that is beginning to play a role in sustainability. Blockchain is best recognized as the technology that underpins digital currencies like bitcoin, but it has far more uses. Daniel Ling, a technology writer, compares blockchain to a digital ledger in which nodes can monitor, manage, and record transactions.
These digital records form virtual blocks (hence the name blockchain), which remain intact even if one or more nodes fail. Blockchain technology provides a method of storing data that is incredibly difficult, if not impossible, to alter or hack. It’s because new transaction information must be updated to numerous ledgers (hundreds or perhaps thousand) first before operation can be authenticated and recorded. To modify anything about the transaction, you'd have to change the details in every ledger. This mechanism is really what makes the blockchain so difficult to hack. Blockchain is playing an increasingly important role in sustainability through fostering consumer-producer cooperation, encouraging people in adopting more sustainable lifestyles, and assisting businesses in improving their sourcing and recycling policies.
Blockchain and a Circular Economy
Upcycling and its three R's (reduce materials and waste, reuse goods, and recycle materials) are critical to long-term sustainability. This ideology ensures that goods and services are traded in closed systems or cycles, ensuring that nothing is wasted and that Earth's natural resources are better preserved. In this aspect, blockchain can also aid. The technology ensures traceability in addition to transparency. Transparency and traceability, when combined, make it possible to track down goods quickly and easily. As a result, being able to tell the difference between genuine and imitation goods aids in the fight against counterfeiting and the harm it causes to our natural resources, as well as fair labor standards.
Finally, blockchain is expediting the supply chain by creating immutable, time-based databases for each stage, including manufacturing, collection, transportation, arrival, and even disposal. A simplified supply chain, such as Walmart's, Amazon's, and IBM's, then aids businesses in optimizing procedures, developing new products, and increasing efficiency. As a result, operating costs are lowered, and, more critically, waste is eliminated. They can also help with resource conservation. However, because blockchain technology is still in its infancy, it may be some time before more businesses around the world find out how to use it efficiently for long-term sustainability.