Climate change and blockchain

Climate change and blockchain


Blockchains can be used as ledger systems that are verifiable, auditable, transparent, and run on a network of personal computers. Although best known as the computational underpinning of Bitcoin, they have applications beyond digital currency.

They could transform contexts where verification of transactions without a central authority is currently a stumbling block. Among the applications being explored are so-called ‘smart contracts’, reputation systems, intellectual property, asset registers, voting, and the administration of decentralized organizations .

There are also applications with environmental relevance. These include land claims registration, especially in regions where property ownership frequently is contested or where administrative institutions are not trusted, including species-rich parts of the developing world; establishment of alternative currencies backed by renewable energy generation, carbon mitigation, and sustainable innovation supply chain traceability to improve transparency and undermine corruption, particularly in agriculture and fishing; and tracking of illegal wildlife trade.

Further applications in fields such as agriculture and land management are likely to arise as this new technology matures.

With the current recycling programs, people often don’t have good incentives to participate. The responsibility for running recycling programs often falls on each separate city, which results in many places not having recycling programs at all. It’s also difficult to track and compare the impact of these programs.

A recycling program on the blockchain could encourage participation by giving a financial reward in the form of a cryptographic token in exchange for depositing recyclables like plastic containers, cans, or bottles. Similar setups already exist in several places around the world, in particular in Northern Europe.

It would make it easy to transparently track data like volume, cost, and profit, and to evaluate the impact of each location, company, or individual participating in the program.

Of course, a distributed ledger of transactions can’t directly resolve the planet’s climate problems. If our home survives this threat, it will be thanks to experts in energy, forestry, vehicle design and urban planning.

What blockchain technology and crypto tokens can help with, however, is the political problem – the core challenge of how to get mistrusting people and institutions to work together in pursuit of a common goal.

The reason it took 27 years after the 1988 founding of the Intergovernmental Panel on Climate Change for the world to agree on a common set of targets and policies at the COP 21 in Paris, 2015, is not because scientists didn’t know what to do. It’s because people, companies and governments don’t trust each other.

In the late 1960s an ecologist called Garrett Hardin wrote a paper on the failure of an economic system of individuals acting independently and in their own self-interest to maintain and conserve a shared-resource.

Instead, due to their own self-interest and contrary to the common good, they would behave in a way that destroyed the commons for the collective.

Bitcoin does have rules for protecting its commons – strict ones, in fact. It’s just that the “governance” isn’t external, it’s baked into the system.

Under this new model, all who share the interests of a community should, in theory, be acting in those interests whenever they exchange tokens. And as more people do the same, the token’s value should rise in line with its network effect.

Since Blockchain Technology offers total transparency and records everything with a time stamp, it would be a perfectly efficient system for this kind of task. Because Blockchain is a distributed network, it could “improve governance and sustainability in support of collective action aimed at tackling climate change”. In contrast to regular centralized or decentralized networks, there is no monopoly possible with Blockchain. All transactions are recorded transparently and permanently. Blockchain could monitor the carbon emissions, fund allocation and clean energy trading, and it could also ensure the accuracy of any data regarding the carbon emission reduction.

  • Improved carbon emission trading Carbon Assets could be recorded on a public blockchain to make sure all transactions are valid and transparent.
  • The network such as SolarCoin utilise ERC20 token called GREEN to incentivize green energy production and reward users for consuming green energy. A number of test nets and pilots are running currently in Europe, Cyprus, Israel, Africa and the US. Greeneum expects the project and platform MVP will be completed by mid 2018.

The Greeneum Network pairs the best functions in Blockchain technology with best practices in clean and sustainable energy at scale,” says Assaf Ben-Or, CEO and Founder of Greeneum. “Our vision is for a smart, efficient, and sustainable global energy ecosystem with clean power at its core.

Like another company called carbon trading is also harnessing the power of blockchain

Climate change is one of the most significant challenges of the 21st century. Using the power of blockchain technology, CarbonX will engage millions of people in the fight against this global threat.

CarbonX will recast Certified Emission Reduction Credits (Offsets) as ERC20 tokens and distribute them via an enhanced mobile rewards program that incentivizes individuals to make carbon friendly choices. All transactions will be peer-to-peer on a private Ethereum blockchain.

I am proposing a solution for recording all kind of data on blockchain backed by device such as IOT or any device recording quantitative data which can be traded later.

These can broadly classified as

Creation.

Creation of carbon based emitters which can be converted by an IOT devices and sent to blockchain database.

Distribution.

Platform for distributing carbon emissions currency from an exchange where customer can buy carbon currency.

Tracking.

Currency/ Carbon emission can be tracked via this public chain using an identifier or transaction id.

Trading.

Similarly with the help of blockchain database without manipulating the data the carbon ownership can be transferred publicly to anyone.

Exchange.

Carbon ownership or currency can be exchanged for any liquid asset such as house, car or bonds.

Retirement.

Carbon currency should be a scarce resource not unlimited so it should have a retirement date also.

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