Johan Potgieter, cluster industrial software manager at Schneider Electric. (Image: provided)
A greener blockchain, who would have thought it? The very nature of the blockchain causes it to consume a lot of energy; With great power comes great energy consumption.
But here we are, and green blockchain continues to attract considerable attention, driven by increased awareness of the environmental consequences of blockchain-related systems.
According to the ScienceDirect report Green Blockchain – A Shift Toward Sustainability Green blockchain involves using the said technology in a sustainable manner by prioritizing the reduction of carbon emissions and energy consumption.
In recent times, there has been an increase in the number of green blockchain initiatives, the report said.
These initiatives operate within the broader blockchain ecosystem, which encompasses a comprehensive network of technologies, companies, organizations and individuals engaged in the development, deployment and use of blockchain-based green solutions .
A greener supply chain
The above developments provide a real advantage to organizations using blockchain in their daily operations.
One such operation is the supply chain which benefits not only from greener blockchain operations but also from the sustainability and environmental-friendliness gains associated with the use of the technology.
For example, by integrating blockchain with AI-driven analytics, supply chains can monitor energy consumption, emissions and waste, identifying opportunities for improvement.
Blockchain therefore guarantees the accuracy and reliability of this data, promoting collaboration between stakeholders to implement environmentally friendly initiatives.
Additionally, blockchain improves traceability and transparency, which promotes greener supply chain management. This is particularly important in industries such as food and beverage (F&B) and pharmaceuticals, where it is important to confirm the legitimacy and quality of products.
Combined with AI, blockchain allows real-time tracking of products from their origin to the final consumer. This transparency ensures that claims such as organic certification, fair trade and responsible sourcing are verifiable, promoting sustainable practices throughout the supply chain.
Immutable blockchain records also reassure consumers of the authenticity of products, whether organic products or ethically sourced clothing. Again, this builds trust and brand loyalty and contributes to the company’s overall sustainability efforts.
Contributing to the value chain and improved service delivery, blockchain’s distributed ledger architecture minimizes the reliance on single points of failure.
This decentralization facilitates faster identification of suppliers or alternative routes, ensuring that supply chains remain operational in difficult circumstances.
Promote social responsibility
AI can monitor working conditions and verify compliance with ethical standards such as fair wages and safe working environments. Added to this functionality is blockchain’s ability to provide an immutable record of these practices, thereby holding all stakeholders accountable.
Finally, by enabling direct interactions between producers and consumers, blockchain-based supply chains improve visibility and ensure fair remuneration for small farmers, artisans and businesses. This democratizes the supply chain and promotes inclusiveness.
