How Can Blockchain Technology Help Lower Carbon Footprints?

November 3, 2022

By Murtuza Merchant

Climate change is one of the biggest issues facing humanity today.

Due to 200 years of human activity, we are on the edge of an environmental disaster.

We are told that there are still things we can do to limit the damage, though.

The reduction of carbon footprints is one such action.

Even in the cryptocurrency community, there is a discussion on reducing carbon footprints, and blockchain technology is being considered as a possible tool to reduce carbon footprints.

In this article, we will look at what this comprises and how blockchain technology can be used to decrease it efficiently.

What is a carbon footprint?

A carbon footprint is the entire quantity of greenhouse gas emissions that are produced by an individual, a group, or an organization and discharged into the atmosphere.

The total amount of several greenhouse gases are measured, albeit it is commonly expressed as the equivalent of carbon dioxide.

The rising amount of greenhouse gases in the atmosphere, which trap more heat from the sun, is what causes climate change.

In that sense, one may define a carbon footprint as the result of an individual’s actions in conjunction with elements related to international commerce.

Businesses manufacture, sell and move goods because consumers need them, and carbon dioxide is a major by-product of these operations.

The more interconnected the issues are, the more complex potential solutions become, leaving the average person frequently unable to make a difference.

Why should I care?

The resources of the world are used in various ways by the seven billion people who call it home.

By 2050 and 2100, the world’s population is expected to reach 9.8 billion people, according to the UN.

Growing populations result in higher emissions and a depletion of the planet’s natural resources.

If you are curious about how much CO2 the average person emits, figures are accessible. One tool that lets you view per-capita CO2 emissions is “Our World in Data.”

Rising greenhouse gas emissions have a direct impact on global warming. It accelerates climate change, which has negative effects on our planet.

So, in order to combat global warming, every one of us must begin making decisions that are climate-friendly in our daily lives.

The principal contributors to a carbon footprint

What is the source of these emissions? How does that affect the carbon imprint you leave behind?

It should not come as a surprise that a small number of important industries contribute most of the greenhouse emissions that we emit. According to global figures from 2016, the main offenders are:

Burning fossil fuels produced 36013.52 million tonnes of CO2e as energy.

CO2e emissions from agriculture totaled 5795.51 million tonnes.

Land use change and forestry contributed to the production of 3217.07 million tonnes of CO2e.

Industrial processes produced 2771.08 million tonnes of CO2e.

Waste produced 1560.85 million tonnes of CO2e.

How can I determine the size of my carbon footprint?

Our actions and lifestyle choices have an impact on the environment. So how do you calculate your carbon footprint?

Calculating your carbon footprint is a smart place to start. If you’re searching for a simpler choice, it’s worth looking into this WWF one as well.

However, both employ the same process, which comprises asking you questions regarding your life and routine to provide a summary of your emissions.

How Blockchain Hopes to Change It

The ability to calculate carbon footprint using IoT-compatible smart sensors is one of blockchain technology’s most important accomplishments.

It is possible to compute energy usage and generate data that can be checked, fixed, and compiled on the Blockchain when the two are merged.

By converting carbon emissions into tokens or “carbon credits,” the blockchain allows companies and governments to trade them and reduce their environmental impact.

There will be a rare opportunity to offset carbon emissions because of the transparency and traceability of the data acquired using Blockchain technology.

Another method to significantly reduce carbon footprint is for blockchain projects to join with renewable energy providers and then offer these providers a wealth of blockchain benefits.

Because of this, blockchain-based initiatives like IncubateX were created to make this idea practical.

One of the big-idea renewable energy projects that IncubateX is assisting in launching and promoting is IntegrateSun.

Additional ways the blockchain can be used to cut carbon emissions include:

A self-executing piece of code called a “smart contract” can help the government pay companies automatically when they successfully meet carbon emission regulations.

Blockchain enhances accountability and gets rid of the chance for double counting.

A blockchain network allows the government to do the required auditing by updating data on products with carbon labels every minute.

Blockchain can help participants track the progress of the product and its related emissions from beginning to end.

Industries can also record the specifics of their emissions, keep track of them, and make the required modifications.

Not all stakeholders were able to track, measure, and identify the carbon emissions due to the system’s great centralization.

Blockchain, however, will eliminate this issue.

About the author

Murtuza Merchant is an avid follower of blockchain, cryptocurrencies and NFTs.

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