Cryptocurrencies, which use the technology to record and secure every transaction are only the beginning, as distributed ledger technology will play a significant role in developing the Metaverse and Web3 – a decentralized version of the internet.
Businesses can use the technology to verify environmental claims and because all transactions on a public blockchain are open for public viewing, an unprecedented layer of accountability is added.
Marrying blockchain with data collected through connected devices and analyzed using artificial intelligence makes it possible to aggregate energy usage and emissions data on the blockchain.
Companies can extend this same process to their whole value chain to help companies build a picture of their scope 2 and 3 emissions.
Carbon trading is the buying and selling of credits that permit a company or entity to emit a certain amount of carbon dioxide.
The United Nations has identified carbon emission trading as an area in which blockchain can help fight climate change as it ensures transparency during transactions.
The technology alone will do little to achieve net-zero by the middle of this century, and there is a whole web of levers that need to be pulled if we are to achieve that aim.