Blockchain can give the world three ways to deal with the climate crisis (Part 1)

by Salman Khan

The world is unable to stop global warming. After the signing of the Paris Agreement, many experts have predicted that global warming will lead to a catastrophe. Along with the global climate crisis, we are also facing a climate control crisis.

Of course, new mechanisms are required. It is possible that blockchain technology can improve global climate cooperation. Blocking is an information structure that collects data as a series of encrypted blocks that are distributed to all network participants at the same time. Data stored in blockchain systems are protected from tampering. 

Blockchain technology allows people access to the building blocks of so-called decentralized independent organizations, which are criticized and discussed as an alternative management mechanism at the national level. However, the international benefits of a decentralized organization will be enormous.

Imagine a blockchain-based climate organization called Smart Deal that facilitates communication between states and companies. These agreements are parts of computer code that work on blockchain, so they cannot be enforced. 

1. Increasing clarity

Better information is needed for coordinated action against climate change. An important task is to assure that various stakeholders are not required to turn off carbon credits for the same carbon activity, such as projects involving two companies.

For such misunderstandings, Carbon, a typical digital account of carbon credits developed by Pacific countries, is better than the central authorities that create carbon credits. 

Another (more difficult) issue is to confirm that carbon-offsetting activities are indeed taking place. Through data feeds such as the Internet of things, blockchain technology can access new sources of information.

At the same time, smart contracts provide an effective way to compensate for important issues such as reducing local emissions and approving compliance measures.

2. Making promises

Climate change is a promising direction. Consider US President Donald Trump’s decision to withdraw from the Paris contract. In different countries, concerns have been raised that the emergence of COVID-19 could spoil the government’s efforts.

With the help of smart contracts, Blockchain technology can reduce the risk of duplication if states reduce their financial security commitments. If states miss to meet their emissions reduction targets, reserves can be redistributed, such as green coins that reduce carbon emissions, such as tree planting or environmental activities. 

More effective delivery of promises through smart contracts can only be maintained as promised. Another advantage of reducing environmental uncertainty is that it attracts climate promises through more powerful organizations than those that are afraid of fraud.