How Blockchain is contributing towards Sustainability: Inside the World Economic Forum Annual Meeting 

World Economic Forum Annual Meeting 20203, that took place on January, has a lot of discussions regarding Metaverse and its ongoing journey to digital transformation, Bitcoin and being open minded about it and how blockchain is helping the world in working towards its fight for sustainability.

It is during that time that the Conference of Parties (COP) of the United Nations Framework Convention on Climate Change also came together with about 40,000 people from around 196 countries. Personnel from governments, international institutions, financiers, businesses, NGOs and native communities come together for a two-week sprint. During this time they try to discuss the measures as to how they can tackle the climate crisis. The Conference of Parties (COP) of the United Nations Framework Convention is aimed at reducing the global warming to below 2 degrees Celsius above pre-industrial levels. The joined effort also has an aim to limit the reduction to 1.5 degrees; a commitment that has most likely already been achieved according to most evaluations. It was during the historic Paris Agreement that the famous 17 United Nations Sustainable Development Goals were first introduced at COP21.

The COP has also came up with tools that will most probably prevent climate doomsday. Those tools, being calculative of carbon credits, green bonds and other green assets are deeply involved with their aim to provide a positive environmental impact. They also play a crucial role in the decarbonization of the globe. Positive and negative impacts on the environment also have to be forecasted and described as per the approved methodologies as the data concluded from this is used as a reference for the future. This is where duplicity has a chance to negate the authenticity of the major eco-claims. To negate that, on-chain verification is the way to bring immutability and transparency. This will also stimulate the issuers to work dedicatedly towards their green commitments.

Carbon offsets and the birth of ReFi

It is no secret that Web2 financial players like banks, exchanges, and registries have been monopolising with the issuance of green finance instruments. Thus, it is no surprise that Web3 is bringing in the most disruptive approach at this stage. One of the most obvious Web3 use case in green finance would be choosing to the transfer of assets from traditional centralized registries to the blockchain via fungible or NFT tokens. The approach of tokenising the carbon credits are being implemented by a new generation of infrastructure solutions.

This mixture of blockchain technology with monitoring tools; with the likes of the Internet of Things and satellites; will be able to provide further transparency and traceability of the impact reporting along with the green finance value chain. The above mentioned use cases have already made an impressive impact on the attainment of the Paris Agreement and U.N. Sustainable Development Goals. The companies backing up the strategies consider themselves to be a part of the growing Regenerative Finance (ReFi) community.

Read more: Upcoming NFT Projects in 2023

HOW BLOCKCHAIN TECHNOLOGY IS IMPROVING EFFICIENCY

Blockchain technology is a form of distributed ledger technology or DLT that underpins most start-ups that are working towards building a Web3 ecosystem as we know it today. Besides its most popular use case in the crypto ecosystem, this revolutionary technology is also introducing and catering to a new collaborative approach to processing transactions. This varied usage of blockchain is slowly proving to be very useful in providing solutions of every kind in an increasingly connected world.

With the efficiency that Web3 is bringing coupled with the ever-growing adoption of Web3 and newer projects coming up almost every week, various other use cases are yet to be explored for an even better tracking of carbon footprint.

Source: Cointelegraph

Read more: Blockchain in Healthcare Industry