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What are the positive impacts of blockchain on the environment?

Blockchain is one of the technological advancements that have made countless significant contributions to the growth

By Pallav Jain
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Blockchain is one of the technological advancements that have made countless significant contributions to the growth of the economy and the advancement of humanity as well. Blockchain technology is known as the shared database technology that is already disrupting a wide range of industries. Most people know that this technology is used in banking & payments, but do you have any idea that this technology can also solve hazardous environmental issues? Well, it's beneficial in solving the environmental issues that individuals are facing on the planet.

If blockchain technology is adopted globally, it might help to save the environment or stop climate change. It's one of the technological developments that have a lot of promise for the progress of the environment. Blockchain technology is particularly interesting technology for permanent, tamper-proof databases, as it makes it possible for a community to track and verify transactions or interactions without the need for centralized authority.

A blockchain is a vital tool that significantly boosts sustainability and increases transparency, efficiency, and even accountability of environmental projects. One of the most intriguing things about blockchain technology for researchers is that it enables them to revolutionize innovative procedures. The world is increasingly looking at utilizing blockchain, the digital technology to accelerate actions on problems including- biodiversity loss and climate change. Besides, blockchain is well-known as the architecture that can help make the world greener, reduce the inverse effects of food production on the environment, and improve the way of managing natural resources.

Do you want to familiarize yourself with the specific areas that have positive impacts on the environment? If so, read on to have a deep dive into the impact of blockchain on the environment, which is one of the most remarkable innovations in the 21st century & defined as a novel or fast-evolving approach:-

Makes Supply Chains More Transparent:-

Presently, almost all individuals have the desire to purchase reliable and legitimate products. But, you'll definitely feel very sad on hearing that such products are not available and also difficult to find. Before reaching the store, all the products have to pass several procedures. This way, it becomes quite difficult for the companies to tell the truth about how they make the products; what type of material and chemicals they use to manufacture the products; at which place the industries throw the rubbish; or how adequately they treat their employees. But, in such hard circumstances, blockchain technology enables companies-

  • Track the fine products from the manufacturer to the shelf
  • Assist prevent -harmful waste, fraud, inefficiency, and unethical practices
  • Make supply chains more crystalline
  • Inform consumers of the way of manufacturing and shipping every product
  • Enable the consumers to make environmentally amicable choices

Blockchain can help in tracking food, enable the purchasers to buy local eatables, and inform them about the local produce. It will undoubtedly reduce carbon emissions because the food does not need to travel long distances. Blockchain is an ideal technology that ensures a fair trade producer from where the product actually comes.

"Foodtrax" is a blockchain-powered dApp that the Blockchain Development company makes on the blockchain e-commerce development platform for tracking food from its source to the store shelf. And "Provenance" is also a well-recognized blockchain project that has an ambition of making supply chains more transparent than ever.

Organizes Recycling Programs:-

Individuals are not receiving good incentives to participate in the latest recycling programs. It's the responsibility of every city to run recycling programs separately. As a result, many places become unable to have recycling programs. This way, it becomes very difficult for the individuals to track and make a comparison among the impacts of these programs in different places.


On the contrary, organizing a recycling program on the blockchain encourages participation level, and provides participants or already existing setups with a financial reward in the form of a cryptographic token in exchange for depositing recyclables, namely- cans, plastic containers, or bottles. Furthermore, it will make it easy for you to track the information more transparently, including- cost, profit, and volume. This way, it becomes easy for every individual to evaluate the impact of every individual, company, and location participating in the recycling program more conveniently.

Do you have any idea about the project that turns used plastic into currency? "Social Plastic"/ "Plastic bank" is such a project that has been set up in third-world countries. It allows individuals to deposit used plastic in exchange for currency and services, namely phone charging and cooking fuel. The primary objective of this project is to clean up the world from plastic waste and alleviate poverty. Nowadays, these countries are working on a blockchain-powered app that allows people to exchange plastic to acquire cryptographic tokens.

Another blockchain dApp in development is "RecycleToCoin," which enables people to return their used plastic containers in exchange for a token through automated machines around the world. This way, such kinds of recycling programs encourage participation and issue tokenized regards to its users. 

Tracks Environmental Treaties:-

It's not as easy to track the actual impacts of environmental treaties for governments or corporations as you may think. It also involves several issues, namely fraud, and manipulation. But thanks to the blockchain technology that encourages corporations and civil authorities to hold their environmental promises or report their progress appropriately. Besides, this technology allows governments to track the most important environmental data more transparently. Because once they enter the data into the public blockchain, it stays there for a long duration.

If corporations and governments have an immutable record of the purchasing and selling of credits, then there are more chances that they will look for blockchain technology. It can enable them to store legal documents and cut down on fraud & manipulation. For example, around 979 million is spent annually for administering the global carbon credits scheme.

Implements A Carbon Tax:-

In the current system, it's too difficult to determine the environmental impact of every product and factor its carbon footprint into the price. It represents that not only do the consumers have little incentive to purchase products with a low carbon footprint, but also the companies have little incentive to sell the products.

When you track the carbon footprint of every product with the use of blockchain technology, it will protect the data from tampering and also enable you to determine the amount of carbon tax for charging at the point of sale. If any product is more costly to purchase, it will encourage purchasers to buy more eco-friendly products. Furthermore, it'll encourage companies to restructure their supply chains to meet the demand level for all those products.

A reputation system based on blockchain technology can also provide the companies with a score on the basis of the carbon footprint of all the products they sell. It will assist the companies in making the manufacturing process more transparent and discourage useless or unfriendly environmental practices.

Last but not least, blockchain technology provides various positive solutions for the longstanding problems of humanity and environmental damage. Fortunately, this technology is not only a sustainable technology but also has become a driving force that you can use as a healthier & greener energy source. It assists human beings in solving multiple problems with other new technologies and reducing their environmental impacts. 

Evidently, blockchain technology is certainly helpful in solving the environmental crisis and making sustainability better in various ways. It is the emerging technology that improves digital infrastructure and adjusts regulations for designing energy systems in the future.


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