In recent years, blockchain technology has become increasingly popular in many industries and applications such as food, beverage, manufacturing, and border patrols. It is being implemented in supply chain monitoring, financial services, big data storage, payment processing and smart contracts. It attracted the attention of several big companies including IBM, Walmart and FedEx, and was touted as one of the biggest disruptive technologies of the 21st century.
However, some critics believe that due to the relationship between the blockchain and the cryptocurrency bitcoin, it has a huge negative impact on the environment. For example, due to the high energy use involved, blockchains have an amazingly high carbon footprint. On the other hand, there are many supporters who believe that the blockchain is actually the gospel of the environmental cause.
History of blockchains and cryptocurrencies
To delve into this problem, you must first understand what the blockchain is and how it relates to cryptocurrencies, especially bitcoin.
The concept of blockchain technology was introduced in 2008 by an anonymous person named Satoshi Nakamoto. Nakamoto wrote a white paper entitled "Bitcoin: a Peer-to-Peer Electronic Cash System". Shortly after the publication of the white paper, Nakamoto launched the first batch of bitcoin and realized the blockchain database for the first time.
This database is an accurate, immutable transaction book that gives a sense of trust to the shadow field of early digital currencies. Its transparent, decentralized, and real-time logging capabilities are accessible to anyone who needs to access it - and it's unchangeable.
Eventually, the blockchain begins to be used for other functions than cryptocurrency transactions. In mid-2010, companies began to recognize the intrinsic value of the blockchain and its ability to streamline communications and transactions.
Blockchain, cryptocurrency, and the environment
While blockchain does require a significant amount of power, most of the environmental debates against the use of this technology in cryptocurrencies are concentrated on this point. Some cryptocurrencies, such as bitcoin, are extracted from the digital ecosystem through a process called "mining." "Excavation" is an encryption technique that involves recording transaction data in a common ledger (blockchain).
Cryptography is built in a "workload proof" agreement that rewards miners who solve complex equations. This process requires a lot of computing power, which means a lot of energy consumption is needed.
The way to understand this on a simple level is to guess digital games, explains Reddcoins chief operating officer, Jay 'TechAdept 'Laurence.
"Suppose I randomly choose a number between 1 and 100. Then, I ask each of my friends - the miners - to give their guesses on this number. If you guess correctly, you can win a token. If not, they can only try again. Each guess takes some effort to calculate a number, write it down, and check with the network.
In this example, some of my more ambitious friends You may realize that you can win more tokens by guessing more often. So they put real money and electricity into a specially designed guessing machine so they can make thousands of guesses per second.
The mathematical formula behind these guesses requires specialized hardware that can perform these special calculations very quickly. These machines are placed in warehouses and data centers, and the energy consumed is increasing.
However, in order to deal with bitcoin versus energy Excessive use, a new model called "Proof of Rights and Interests" came into being. Lawrence explained in a metaphor of the guessing game, using a proof of interest system, "My bet allows me to hold only a bunch of digital pieces of paper. "Whenever the network chooses a number on one of my sheets of paper, I get a little reward.
"This situation doesn't require intensive calculations like Bitcoin, so it doesn't waste computing energy and power, or at least less. Much more. In contrast, the PC is a server-filled data center.
How the blockchain helps improve the environment.
Although the bitcoin origin of the blockchain has given it a less environmentally-friendly reputation, there are still some companies, such as startup Nori. Think of the blockchain as an environmentally friendly tool potentially used to reverse climate change.
Nori uses the blockchain to power the company's carbon dioxide abatement market, which supplies altruism and carbon reductions worldwide. The business is directly linked to fund the elimination of excess carbon emissions from the atmosphere.
Nori CEO Paul Gambier said: "Some blockchains operate in excess of energy, while other blockchains operate insignificantly on energy. In my company, for example, we are building A blockchain-based application makes it easy to pay for carbon dioxide removal from the atmosphere. This is a direct benefit to environmental issues: the use of blockchains to provide transparency and credibility for measuring and verifying emitted carbon dioxide."
Despite the controversy originated block chain, but it progressed beyond the initial application in the currency of encryption. In considering energy use, and to distinguish between bitcoin block chain is very important to remember Bitcoin A digital labor-intensive process is needed that requires too much energy demand, and blockchains are not necessarily.
Blockchains have begun to be used in environmental applications, and as technology continues to evolve, industry participants around the world will pay close attention to it. Wide range of applications.