Cryptocurrencies Linked to Renewable Energy
Directory
Terry Jackson:
"The energy issue is being tackled from two sides: the energy source (switching to renewable energy) and the energy requirements — in terms of hardware — in addition to changes in mining techniques.
One company, for example, is developing a digital currency and blockchain (Chia), which proposes to ‘farm’ rather than ‘mine’ — the idea being that unused storage on hard drives is utilised rather than processing power.
GENERcoin is a ‘commodity backed digital currency combining renewable energy and cryptocurrencies’. The currency, in this instance, is backed by ‘green’ energy. It can be redeemed for the energy backing it, or traded and exchanged as with any other cryptocurrency.
EverGreenCoin is a cryptocurrency used to raise funds for environmental green projects such as renewables and water conservation." (https://insideecology.com/2018/06/15/blockchain-and-the-environment/)
Discussion
Terry Jackson:
"Blockchain has even been heralded as a means by which to protect the environment; because blockchain is accessible by multiple users, data held is transparent, cannot be modified and once added cannot be removed — it takes the validation of multiple computers before a new record can be added. This reduces transaction costs and middlemen, in addition to increasing efficiency. Blockchain also allows for peer to peer interaction.
All of these things can be used to support the environment — FutureThinkers have compiled the following examples:
- Blockchain can be used to track environmental compliance and the impact of Treaties — decreasing fraud and manipulation.
- Donations to charities can be tracked to ensure that they are being attributed efficiently and as planned.
- Products can be tracked from origin to source. This can help reduce carbon footprints, increase ethical accountability and reduce unsustainable practices.
- Schemes such as recycling can be incentivised by offering token rewards to participants.
- Peer to peer localised energy distribution is possible, rather than the current system of a centralised hub.
- Blockchain can also be used to track the carbon footprint of products, which can then determine the amount of carbon tax to be charged.
It can be seen, that whilst there are challenges still to be overcome, blockchain has the potential to reinforce trust and accountability. This could have positive implications by ensuring that environmental issues are addressed in a sustainable manner and that measures to tackle these issues are enforced / incentivised."
(https://insideecology.com/2018/06/15/blockchain-and-the-environment/)