“The governments of the world have spent hundreds and hundreds of trillions of dollars bailing out a decaying, dickensian, outmoded system called banking, when the solution to the future of finance is peer-to-peer. It’s going to be alternative currencies like bitcoin and it’s not actually going to be a banking system as we had before 2008.” –Satoshi Nakamoto, Founder of Bitcoin
The Future Is Here.
Seth Spoke about the inefficiencies of fiat currency in the last post. He highlighted some key points that show the outdated nature of our financial system. Today we are going to dive into the sustainable world changing future of cryptocurrency. Bitcoin, Ethereum, Chainlink, Bianance are all massive multi billion projects set forth on rewriting how we transfer data, and make financial transactions. Projects are exploding in the DeFi sphere, and they already are causing major global disruptions. The question is what does sustainability look like on these platforms and with this technology? Great question.
Blockchain.
Blockchain is the technology behind cryptocurrencies, and decentralizing and bringing more clarity to the complex economic environment we know today. Technologies built around cryptography will reduce waste, hold companies more accountable and drive sustainable business practices across the spectrum. Blockchain technology provides a ledger, or digital spreadsheet which promotes transparency, traceability, and overall accountability for businesses, and consumers alike.
Transparency benefits doesn’t mean data will be more unsecure, because data will become the most secure it has ever been utilizing these technologies. What does that mean for you? Well it means no more wasteful spending by banks and businesses to attempt to secure funds and private information. There will be no more wasteful spending by governments, which alone will save billions if not trillions of dollars for citizens. No more “cooking the books” by corporate entities. There will be no more wasting of precious energy, and raw materials to build multiple inefficient data transfer systems.
It’s Happening!
So is Bitcoin there already? Is Bitcoin and platforms like it already consuming less energy than traditional banks, and businesses? The answer is clear; YES! Bitcoin is already using a 10th of the energy that the banking system consumes. Other cryptocurrencies have been working on efforts to reduce and streamline their energy consumption. Consumption will only gets better as time goes on.
Ethereum has been rolling out ETH 2.0 which will cut the energy consumption of the ethereum network by over 90%. This will drop gas fees, and making transactions more streamlined. Ethereum is accomplishing this incredible feat by converting the network to a proof of stake system vs a proof of work. Chainlink has recently launched its Climate Futures protocol 1Planet to accompany Carbon Markets 2.0. This system encourages less environmental impact for projects by making the transfer, and sale of carbon footprints more transparent. 1Planet encourages companies and consumers to reduce the size of their carbon footprint utilizing blockchain technology and will create more sustainable practices in the process. There are more examples entering the market space everyday.
Into The Sustainable World.
Blockchain, Bitcoin, Ethereum, and so many other projects are pushing the traditional systems out the door, and replacing them with cleaner, safer, more efficient technology. This push is leading us into the sustainable world today. The disruptions in life have been minimal thus far, but they will come fast. Blockchain technology is already creating a more sustainable future. Writing this had me even more motivated to promote, and share what this technology will do for humanity. The future is DeFi, and whether we embrace it today or tomorrow Defi is the future. We would love to hear from you on this subject, thanks for reading!
