Web3; The sustainable initiative

Introduction

Kinjal is an environmentalist. She heard about Web3 being a potential environment polluter. Kinjal voiced her opinion about Web3 and its impact on the environment.
Anuj, her friend, had significant knowledge about Web3. He educated Kinjal on how Web3’s connection with the environment is not harmful. Let us also get the facts straight before moving forward with our misconceptions.

Bursting the bubble

Most businesses do not use Bitcoin for NFT creation or transactions. Instead, they use Ethereum, the second-largest (by various measures) public blockchain, and Layer 2s (L2s) or sidechains like Palm, which run far more environmentally friendly protocols. There is a widespread misconception about Ethereum transactions’ environmental impact. A closer examination of the numbers reveals that many transactions, particularly those related to the minting and sale of NFTs, have no significant implications.

The switch

Bitcoin and Ethereum are shifting to renewable energy, either as a short-term fix with carbon credits or as a long-term investment in dedicated generation. (Blockstream and Block have collaborated on the latter, which will use Tesla solar panels and batteries.) Another option is to switch from proof-of-work blockchains to proof-of-stake blockchains, which consume far less energy.
Brands looking to position themselves as leaders in both Web3 and ESG may throw their support behind them by pledging to use blockchains with a low carbon footprint or, at the very least, being selective in their choice. “I would advise brands to avoid proof-of-work because it will end up being like VHS versus Betamax,” says Max Pinas, creative director at DEPT. “And stake-of-stake will triumph.”

Environmentally conscious Web3 projects

  • ClimateDAO -ClimateDAO, like many other social impact DAOs, is concerned with climate change. They take a different approach, focusing on activist investing in effecting social change. They intend to pool money from contributors and use the funds to purchase shares in publicly traded companies, to use these positions to enact a strategic shift in the companies through proxy voting, initiating shareholder proposals, and advocacy.
  • Blockchain for Climate Foundation -It aims to “put the Paris Agreement on the Blockchain” by “connecting the world’s National Carbon Accounts to enable cross-border collaboration in emissions reductions.” “By building a secure, transparent mechanism that incentivizes emissions reductions anywhere in the world,” their Founder, Joseph Pallant, “we can drive net global emissions down farther, faster, and give ourselves a fighting chance to beat climate change.”
  • Plastiks -It is an NFT marketplace that aims to serve as a “bridge between plastic producers and recyclers.” The Plastiks marketplace combines NFTs with accurate recycling data from waste management companies worldwide, establishing a new standard for compensation, traceability, and recovery of plastic production.”

Conclusion

Now is the time for brands eager to stake their claim in the next frontier of computing, both in the metaverse and in steering the underlying software toward a more sustainable future. To avoid technological dead ends, brands looking to create or connect with communities in Web3 should evaluate, select, and champion carbon-neutral blockchains with high interoperability. It’s not often that we get to shape the future of new technology.

Citations

Spread the love

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top