Green cryptocurrencies are expected to make an appearance, along with a new kind of financing that’s every bit as transformative as issues that once surrounded common stock. This is set to occur from a combination of such technologies as smart contracts and blockchain with improved environmental information, and increased interests from corporations in raising funding for green-frontier investments. Cryptocurrencies will, in turn, incentivize leadership and innovation, help combat policy issues, and reward greener purchases.
Transparent and specific
Through blockchains, supply-chain data from a number of economic sectors can be combined into a worldwide, fully interoperable, trusted dataset. Such level of transparency and specificity will make quantifying specific environmental advantages possible – whether that’s green proteins, renewable power, or clean jet fuels – and transform them into commodities to be sold in the marketplace. This data will be part of the “smart contracts” currently supported by a number of cryptocurrencies, providing a way to exchange, not just for payments, but for the life-cycle implications of production processes.
Certainly, efforts towards a greener cryptocurrency are worth the time and effort, as it appears as though digital coins are here to stay. Bitcoin, in particular, has been constantly in the news in 2018 and is becoming more widely known and accepted. It isn’t the easiest subject to grasp for those new to the subject but it comes with numerous advantages, with anonymity being among them. The first thing that first-time bitcoin investors need to look for is an exchange. The most reliable are those that prioritize the safety of the website and server. Essentially, it’s important to know that the exchange is trustworthy. Fortunately, sites such as Best Bitcoin Exchange provide a directory of secure exchanges to make life easier for those new to cryptocurrency.
Big corps using blockchain
Big corporations are already employing blockchains to optimize complex supply chains. Further, this technology can manage and track environmental performances, as well as embed the data in both financial and non-financial transactions. At the opposite end of the supply chain, consumers will have more confidence when it comes to buying green.
New green cryptocurrencies are currently being developed on the back of blockchain-enabled worldwide datasets of life-cycle data related to the environment. Armed with accurate and specific data, energy firms could be among the first movers.
The rebound effect
These green digital currencies will further offer an innovative way of combatting the so-called “rebound effect”: a situation whereby environmental benefits are cancelled out by behavioral changes. It occurs, for example, when having reduced electricity bills through efficiency, we turn up the air conditioning. Another example would be when funds saved from reduced food waste are spent on more taxis or a second holiday.
The rebound effect could be tackled by providing the buying public with units of eco-friendly cryptocurrencies, as a way of rewarding efficiency-based savings, which could be redeemed either as payments for green electricity or other blockchain-based environmental services. These services could include household insulation, electric vehicle charging, and organic detergent. Airlines could also offer these cryptocurrencies as a replacement for more conventional offsets.
Much hype has surrounded distributive-ledger technologies over the past few years. The signs indicate that a green finance revolution could finally be on its way.