Amid ongoing concerns about Bitcoin’s carbon footprint (BTC), the United Nations has stated that the underlying technology of cryptocurrency has tremendous potential in addressing global issues like climate change.
According to an article posted on the official UN website on Sunday, the United Nations will continue to study the use of blockchain technology as a means to combat the climate crisis and achieve a more sustainable global economy.
UN experts are confident that “cryptocurrencies and the technology that powers them play an important role in sustainable development and can actually improve the way we treat the environment.” In particular, the article points out a number of environmental and sustainability benefits associated with blockchain, including its ability to enable transparency and resilience to fraud, climate finance and clean energy markets.
Citing the partnership between the UN Environment Program and the Technical University of Denmark, the article states that data on harmful greenhouse gas emissions are unreliable and incomplete in many countries. By providing an immutable record of carbon data, blockchain solutions can provide a transparent way for nations to take action to reduce their impact on the climate.
Blockchain can also be an important part of promoting renewable energy sources like wind and solar power by providing a tool for creating clean energy markets. “Since these sources are intermittent and decentralized by their nature, new forms of energy markets are needed,” the article says.
The United Nations emphasized that cryptocurrencies are still in their infancy and that there are still many technical and political challenges to overcome, including environmental issues and volatility:
“If the weakest benefit from the promise of blockchain technology and the climate crisis is to be really positively impacted, more technical research and a stronger international dialogue with experts, scientists and political decision-makers are required. ”
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Minang Acharya, one of the authors of the UNEP letter on blockchain applications, urged the UN to continue experimenting with blockchain to learn more about its environmental impact. “This will likely improve our UN-wide knowledge of blockchain, our understanding of the environmental and social impact of mining operations, and improve our chances of dealing with any problems the technology could pose in the future,” Acharya said.