Here’s How Blockchain Can Save The Environment

Julie Starr • February 27, 2022



Blockchain is a digital ledger of purchases that is stored in ‘blocks’. The record is decentralized and can be securely stored without the need of a third party to maintain the data. It is the backbone of cryptocurrency like Bitcoin. Cryptocurrencies are making significant steps towards reducing their carbon emissions, making them in many cases far more environmentally sustainable. Here’s how blockchain can save the environment.

Blockchain Companies Committing To Clean Energy

If private blockchain companies commit to going green, this will have a huge impact on both cryptocurrency mining and what the funds generated from mining can be poured back into. Green blockchain companies could encourage green mining farms, and stipulate that funds should be poured into sustainable energy. As the backbone of crypto, blockchain companies can and should hold sway over how digital currency is mined.

Move To A Proof Of Stake System (POS)

Ethereum is one of the first cryptocurrencies to go green, with their new POS concept taking precedence over the old proof of work (POW) system. The POW system is where members of a network, or ‘miners’ have to solve a mathematical puzzle. It is a form of competition used to generate new blocks and currency. It takes a huge amount of energy. POS is an alternative where you stake your coins in order to complete transactions. It takes far less energy to create coins and is a great alternative to the previous model.

The Crypto Climate Pledge

Many blockchain and crypto companies are making an investment in green and clean technology, with the Crypto climate pledge. This Accord stipulates that all crypto and blockchain companies should be creating digital currencies using sustainable energy by 2025. They aim to do this through the use of open source technology and investment into sustainable energy. 

Work With Crypto That Doesn’t Use Mining

There are many new and emerging cryptocurrencies that blockchain companies could work with that do not rely on mining at all. Crypto like Nano has existed since 2015. It uses blockchain-lattice technology, which relies on each user having a unique receive and send block unique to them. They can create their own chain, making this both secure and easy to verify without mining.

Climate Pledges And Redistribution

Blockchain and crypto could help save the environment by using its systems for climate pledges. One proposal would be that countries, states or companies pledge a certain amount of money to reduce their carbon emissions. Should that country, state, or company fail to reduce their emissions, then their deposit would be redistributed to those that have met the terms of their pledge.

Conclusion

Blockchain and crypto have already made huge inroads into reducing their own carbon emissions, with emerging new currencies that move away from mining and instead look at additional encryption or proof of stake workflows to overcome their use of fossil fuels. They are also looking to use their technology to facilitate investment and pledges to reverse climate change.

By Julie Starr July 14, 2025
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By Julie Starr June 20, 2025
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