In November 2019, the next web reported that Nestle and Carrefour plan to use blockchain technology to track infant dairy products and provide consumers with source and mobile data from dairy products to shelves. In October, China’s president Xi Jinping urged the development of block chain technology. In my opinion, these are just two examples to show that the “blockchain 2.0” wave will reshape every industry in 2020.
Smart city and smart technology are developing rapidly, but due to the climate change crisis, public awareness is more needed to accept fast and sustainable practice. Whether it’s the unprecedented fires in California and Australia’s Amazon rainforest, or the threat of air pollution in Delhi, India, the need for “environmental protection” is becoming more and more obvious.
How does the blockchain work in this evasive call for sustainable life? According to the report “building blockchains for a better planet” of the 2018 World Economic Forum, a total of 65 blockchain cases can repair some of the world’s environmental challenges. Blockchain is a tool to promote the development of digital currency. At present, it is regarded as a decentralized global computing infrastructure, which can change the existing processes of business, governance and the whole society.
As a co-founder and CEO of a software development company, I have the vision to explore new ways of innovation, and I was involved in blockchain a few years ago. My company has established a proof of concept and put forward transparent and inconsistent solutions for different industries.
In today’s context, climate change is a very realistic problem that needs to be solved. My team has the responsibility to meet the challenges of the future through technical guidance and expertise, and has cooperated with customers in this field, so as to find a sustainable development method. Now, I’m going to delve into these cases, and I believe that they can help achieve sustainable living, balance climate conditions and reduce threats in the long run.
1. Energy token
This is a way to build a reliable customer to customer network so that energy can be easily exchanged between suppliers and consumers. In order to increase the possibility of renewable energy adoption, networks built with blockchain applications can encourage consumers to take sustainable actions through credit. For example, collecting plastics from the ocean, recycling or conserving renewable resources can be used in exchange for food, water or any other daily necessities of monetary value.
2. Promote circular economy
By introducing a broader and inclusive tripartite approach to supply chain functions across sectors, communities and individuals, we will be able to promote the circular economy. Tracking the way raw materials and natural resources are purchased, traded, and consumed at the core helps to gain economic value from things that are wasted, discarded, or deemed to have no economic value. This in turn creates awareness and instills a wide range of behavioral changes to accommodate a minimum of underlying resources.
The circular economy not only provides visibility to all stakeholders, but also creates closer links between consumers and small businesses, thus laying the foundation for an inclusive economy that encourages actions aimed at mitigating environmental impacts.
3. Record the ownership of assets
As we all know, the global supply chain has always been complex and decentralized, often troubled by the lack of absolute transparency and other issues. By recording asset ownership on the blockchain, the amount of resources extracted from the ground at a specific point in time, or the air and water pollution levels recorded at the outlet of a factory, can be integrated into a single and secure data stream that can be provided to anyone interested. To a large extent, this will help civil affairs authorities and civilians in resource management, so that they can understand how to make more educational and environmental awareness decisions.
4. Tracing the source
The impact of climate change on the agriculture, food and beverage sectors poses considerable risks to increasing climatic conditions. In this already complex dynamic, trying to improve sustainability makes it crucial to understand and design the search for increased transparency in the supply chain. Investigating what we buy, from origin to packaging, can lead us into a well-known black hole.
Due to the openness, integrity and decentralization of blockchain, every stakeholder in the supply chain can obtain information and promote greater equality in the whole process. It also facilitates seamless and meaningful interaction among all stakeholders, allowing seamless flow of data from producers to consumers.
What challenges need to be considered?
In order for blockchain to achieve environmental sustainability successfully, it is important to assess certain considerations and limitations. Therefore, the main challenge of blockchain adoption is the limited scope of its scalability. First of all, blockchain is a high-energy technology, which requires large-scale infrastructure model to operate and process transactions efficiently.
Therefore, in countries with weak Internet facilities and energy infrastructure, blockchain may not achieve the expected purpose. Although it shows the potential to achieve significant results in supply chain sustainability, it also requires significant energy consumption.
Another aspect to consider is that blockchain is still relatively new in exploring its full potential. The delicate relationship between blockchain and sustainable development proves how complex sustainable solutions are.
Considering that the full potential of blockchain cannot be traced back to the future and is fixed, people can easily put their cards in the present to see if it has the ability to provide a verifiable record of who exchanged what with whom – who owned what at a specific time. In a complex world, all parties are trying to give each other enough good faith to cooperate on solutions, and a confidence building system will lay the foundation for progress and sustainability. From my point of view, blockchain is actively competing.
Responsible editor; zl