Blockchain is a technology and not a cryptocurrency. Organizations and those who have a fear of cryptocurrencies are also in support of the adoption of blockchain technology. There are many benefits of this technology and businesses are closely following it. As a fundamental technology of bitcoin, blockchain is decentralized, non-tamperable, anonymous, and traceable, with great potential to replace traditional industries. A blockchain is a distributed database system consisting of several independent nodes.
The complete database is maintained by nodes throughout the network. Blockchain can record all transaction data, the process of which is efficient, transparent, and fully secure. With all its benefits Businesses are ready to adopt enterprise blockchain-based solutions to meet environmental sustainability goals as well as business demands. There are many good reasons that are encouraging businesses to adopt blockchain. And in this article, we will be looking at some of the major factors that can help businesses for creating a sustainable future.
To understand the change in a better way we are taking the example of Bitcoin here because most people associate blockchain with bitcoin. Since bitcoin uses the oldest version of blockchain technology, whatever can be said positively about bitcoin for the environment will be also true for the vast majority of new blockchain-based projects.
Bitcoin and many popular cryptocurrencies have been slammed for their high energy consumption. Multiple reports also stated that bitcoin will consume all of the world's energy by 2020 and increase the global temperature by 2 degrees.
As you can see we are entering 2022 and there is no shortage of electricity. This is because, like most network-based technologies, bitcoin is following an adoption curve – the S curve defined by the principle of diffusion of innovations. In the second half, the energy consumption curve slows down significantly. Another reason is improvements in computer efficiency which drive down energy cost and consumption.
Blockchain consumes electricity in computer power that secures the network. Bitcoin calls these miners, but newer blockchain projects can use validators, which are more efficient. Additionally, Blockchain technology started using more renewable power from solar and hydroelectric sources years ago. Neither these details were included in all the previous reports nor did people were caring about it. But Blockchain is updating and so is its energy mixture percentage. It is expected that by 2025 blockchain will mostly run on renewable energy.
Whether or not the energy use of blockchain is meaningful is one of the least discussed topics in the world. Blockchain-based projects enable 1.7 billion to achieve financial inclusion or offer an alternative to predatory international remittance services, it seems clear that blockchain is worth the energy use.
Blockchain technology is trying to help the world in many different ways. It is making transactions instant, helping unbanked people, and providing various other opportunities. But the main thing it is doing is that it is encouraging the world to adopt renewable energy faster.
It is also helping the world with green financing and upgrading traditional processes. Blockchain is currently far from ideal in terms of environmental sustainability. However, if it follows the same path of improvement, it will soon be not only an example but also an enabler of environmental sustainability, and then blockchain will definitely play a key role for enterprises in creating a sustainable future. However, Blockchain 2.0is also on its way which will improve the condition even further.
It is still a long journey but there are possibilities and hope, and since the blockchain is following the right path enterprises and all need to stay up-to-date with it. Coin Gabbar can help you in that, It is one of the most versatile cryptocurrency marketplaces. It will keep you updated with all the happenings in the crypt-verse. So bookmark our website and don’t miss anything.