There’s Green and Then There’s Blockchain Green
A greener blockchain, who would have thought of it? The nature of blockchain is to consume a lot of energy; the greater the power, the greater the electricity consumption. But green blockchains continue to receive widespread attention, driven by growing awareness of the environmental consequences of blockchain-related systems.
According to a report by ScienceDirect Green Blockchain—Towards Sustainable Development Green blockchain requires utilizing said technology in a sustainable manner by prioritizing the reduction of carbon emissions and energy consumption.
The report states that there has been a surge in the establishment of green blockchain initiatives in recent years. These initiatives operate within the broader blockchain ecosystem, which includes a comprehensive network of technologies, companies, organizations and individuals engaged in developing, deploying and leveraging green blockchain-based solutions.
Greener supply chain
The above developments offer real advantages to organizations leveraging blockchain in their day-to-day operations. One such operation is supply chain, which benefits not only from greener blockchain operations, but also from the sustainability and environmental benefits of leveraging the technology.
For example, by combining blockchain with AI-driven analytics, supply chains can monitor energy use, emissions and waste, identifying opportunities for improvement. Therefore, blockchain ensures the accuracy and trustworthiness of these data, promoting cooperation among stakeholders to implement environmentally friendly initiatives.
Additionally, blockchain promotes green environmental protection by increasing traceability and transparency supply chain management. This is particularly important for industries such as food and beverage (F&B) and pharmaceuticals, where confirming the legality and quality of goods is important.
Combined with artificial intelligence, blockchain can track products from origin to final consumer in real time. This transparency ensures that claims such as organic certification, fair trade and responsible sourcing are verifiable, driving sustainable practices throughout the supply chain.
Blockchain’s immutable records can also reassure consumers of a product’s authenticity, whether it’s organic or ethically sourced clothing. This again builds trust and strengthens brand loyalty and contributes to the company’s overall sustainability efforts.
Blockchain’s distributed ledger architecture facilitates value chains and improves service delivery, minimizing reliance on single points of failure. This decentralization helps identify alternative suppliers or routes more quickly, ensuring the supply chain remains operational during challenging circumstances.
Promote social responsibility
AI can monitor labor conditions and verify compliance with ethical standards such as fair wages and safe working conditions. Adding to this capability is the ability of blockchain to provide an immutable record of these practices, thereby holding all stakeholders accountable.
Finally, by enabling direct interaction between producers and consumers, blockchain-based supply chains increase visibility and ensure that small farmers, artisans and businesses are fairly compensated. This democratizes supply chains and promotes inclusivity.
