Amid ongoing concerns about bitcoin’s carbon footprint, the UN has said that the technology behind cryptocurrency has enormous potential to tackle global challenges such as climate change.

According to an article published on the official UN website on Sunday, the UN will continue to explore the use of blockchain technology as a way to combat the climate crisis and help build a more resilient global economy.

UN experts are confident that “cryptocurrencies and their underlying technologies can play an important role in sustainable development and actually improve our environmental governance.” In particular, the article mentions a number of environmental and sustainable benefits associated with blockchain, including its ability to provide transparency, fraud resistance, climate finance and clean energy markets.

With reference to UNEP’s partnership with the Technical University of Denmark, the article states that data on emissions of harmful greenhouse gases in many countries are unreliable and incomplete. By providing an unchanging overview of carbon data, blockchain solutions can provide countries with a transparent way to implement measures to reduce climate impact.

Blockchain technology can also be an important part of the use of renewable energy sources such as wind and solar energy, and provides a tool for creating clean energy markets. The article notes that “since these sources are inherently intermittent and decentralized, there is a need for new forms of energy markets.”

The UN stressed that cryptocurrencies are still in their infancy, and there are many technological and political challenges to address, including environmental challenges and volatility:

“If the most vulnerable groups want to take advantage of the promise of blockchain technology, and if it is to have a truly positive impact on the climate crisis, more technical research is needed, as well as a broader international dialogue involving experts, academics and decision-makers.”
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Minang Acharya, one of the authors of a brief overview of UN environmental blockchain applications, urged the UN to continue experimenting with blockchain to learn more about the environmental impact. “This is likely to improve our knowledge of the blockchain throughout the UN, our understanding of the environmental and social consequences of mining, and improve our chances of tackling any challenges the technology may pose in the future,” said Acharya.

Source: CoinTelegraph