How We Can Fix Cryptocurrency & Achieve the SDGs

 

As the importance of the SDGs and the 2030 agenda become clearer and better known, more sectors are starting to recognize their role in the agenda and are aiming to make steps to reduce their contribution to our global footprint.

There is a lot of potential in FinTech and, used properly, the technology is one of our best tools when it comes to improving the world for future generations. That being said, it is far from perfect. If we want to keep our planet habitable we need to work with the technology to find a better way.

Let’s take a look at what needs improving.

Cryptocurrency has so many assets that make it the best choice for the modern financial world. That being said, its high level of energy consumption can’t be overlooked or forgotten. Just Bitcoin has been said to use 1% of the world’s energy consumption and many of the major cryptocurrencies run through more energy than whole countries.

Obviously this is not good news. A continuing excessively high use of energy is a death sentence for our planet. Changes need to be made.

Ethereum knows this and is striving to find the best way to reduce its consumption. Its aim in fact is to reduce consumption rates by 99%.

Understanding that the problem lies in the Proof-of-Work system, Ethereum aimed to change the game by switching to a Proof-of-Stake system.

This brilliant move reduces the level of energy needed and produced a system that enforces its users to act honestly. This is right in line with the overall message of the SDGs.

As more people gain an interest in cryptocurrency and seek to discover the field the consequences need to be properly explored and we need to make sure we are taking the right path.

After all, mining cryptocurrency requires a large amount of energy and this becomes an environmental concern when too many people join the fray.

Another problem comes from people not understanding the complications that come from the mining process. Mining rigs, a key component of the process, are large, noisy and dusty.

Comino is an innovation set to offer a solution. This new mining system is far more efficient and, with its liquid cooling system, can be run for longer periods without the dangers that come with overheating.

Other solutions? Using the heat to operate a greenhouse. This is what is being done with the excess energy created by mining NakamotoX. So if you come across cryptomatoes in the grocery store and wonder how the areas connect, there is your answer.

Looking at these innovators we can see how cryptocurrency and mining cryptocurrency can be used to make life better for people all over.

There are other avenues being explored as our greatest minds seek out the solution for this environmental conundrum.

WanderingWare serves as a great example of the avenues people are exploring. Created as a way to offset cryptocurrencies’ carbon footprint, this initiative works with One Tree Planted in order to increase the tree population and, in turn, reduce the carbon in our air.

Carbocoin is another innovator than definitely deserves our attention. Calling itself “an energy efficient digital currency that plants trees,” Carbocoin aims to use its capital to help fund environmental causes.

I don’t think anyone can argue with how important clean air is. Companies using modern technology to meet our modern wants and needs while simultaneously doing good things for the planet should definitely be lauded as they hold our future in their hands.

So many of our modern advantages have a dark side. If we want to keep them and we want to keep the planet we need to find a way to fix our technologies or figure out a way to balance the scales.

It’s heartening to see that many FinTech innovators know this and are doing what they can to reduce the technology’s impact on the planet.

This is imperative as we want the SDGs to succeed but it’s so hard to give up on modern technology and its advantages.

I look forward to seeing what these environmental saviours do next.