How Blockchain Technology is Transforming Climate Action
It’s time to unite the blockchain community with the climate change community in some concrete and scalable investments into DLT and climate action.
Although the digital asset industry has been slammed for its high energy consumption, such an accusation is misleading. It is essential to differentiate between cryptocurrencies and underlying blockchain platforms that are energy efficient and underpin climate initiatives. Few climate initiatives leverage cryptocurrencies.
The renewed interest in carbon reporting, sequestration, and capture-leveraging voluntary carbon markets has opened the door for green digital asset solutions, which can be tokenized and used as commodities in a market system — e.g., green utility tokens, a reward for lowering carbon emissions; green asset tokens, tokenized carbon credit or biodiversity off-sets; green crypto, programmed only to be spent on green products; and green security token offering issuance platforms designed to enable green proof of impact reporting.