Blockchain technology is best known for being the foundation of digital currencies, or cryptocurrencies, but it's used for much more than that. Because of its ability to transmit information in a decentralized and secure way, it has been proposed as part of the solution to environmental and climate problems.
Alcott's Sersi Quadradat is convinced that blockchain is useful for getting real information to take action on things like decarbonizing the economy.
For example, one use of blockchain is to collect data on different stages of product manufacturing to calculate greenhouse gas emissions and/or to control the source and management of materials and processes. With blockchain, the ultimate information is immutable and completely transparent and accessible. Ignasi Oliva, of the i2CAT Foundation, said: "This allows us to determine that companies who claim to be committed to the environment and the climate crisis really are."
Blockchain is also being used to facilitate recycling. One example is The Plastiks platform from Barcelona-based Norsama. Plastiks uses blockchain to transact between waste managers, recyclers and buyers of recycled plastic around the world. Another possible use related to climate change mitigation, proposed by Catalan startup Blockchain Digital Energy, uses blockchain to digitize the sale of excess electricity from self-use solar installations.
"The technology exists and will continue to exist, but one has to look at which applications it makes the most sense and how it should be applied," said Joan Ramon Barrera, president of the Technology Center Foundation. Oliva, on the other hand, warns that "it will not solve any problems by itself, but rather serve as a tool to enhance or complement processes and/or initiatives".
One of the drawbacks of blockchain is its energy consumption. It is also known for its high carbon footprint, which Quadrat estimates is higher than that of the Netherlands alone. However, Oliva says "energy costs are not an issue" and "it's getting lower and lower." Barrera agreed, noting that "the energy consumption and greenhouse gas emissions associated with blockchain are far lower than the energy savings and emissions reductions."
Nor, in Oliva's view, is the financial cost an issue. "A year and a half ago, the cost of using this technology was a big question mark, but now it has been overcome because the technology is fast to implement and very affordable," he said.
"Technology has not always been nature's best friend, but that may now change with blockchain," Quadrat said.