Climate change is a problem that no industry should be indifferent to. Its importance must also be recognized by companies in the financial sector, including those turning to technology blockchain.
Financial market and environmental problems
BlackRock is a company dealing in the development of investment solutions and technologies focused on sustainable financial strategies.
CEO of the enterprise, Larry Fink, recently issued an open letter to the management boards of companies in which on behalf of BlackRock he said that the financial market would face profound changes.
Climate change is not indifferent to the economies of countries around the world. Problems resulting from them will have a large impact on monetary policy, so it is necessary to search for new strategies.
BlackRock believes they should be based on responsible planning.
Turning a blind eye to climate problems can only be beneficial in the short term. In the longer term, companies that do not downplay this issue will have a chance to achieve an advantage, while ensuring greater investment security. According to Fink's declaration, BlackRock belongs to the latter group of companies.
Blockchain and climate change
It is worth looking at how technology is related to climate change blockchain and cryptography.
Fink pointed out some important aspects in his letter.
First of all, blockchain technology should be used to present the history of the product, taking into account the individual stages of its production, making them compatible with the principles of ecology.
Secondly, the crisis of traditional currencies and the banking sector in the context of climate problems may support the development of decentralized finances and the spread of digital resources.
Thirdly, according to Finn, energy consumption in the cryptocurrency sector will soon become the subject of heated debate, both ethical and political.
The blockchain technology itself is not free from ecological threats. Block chains require the use of various validation systems, and the most common is Proof of Work (PoW).
Until recently, it was thought that it was a completely ecological solution due to the use of excess energy. However, it turns out that the equipment required for this process is quickly broken down, producing powerful doses of heat. Therefore, the spread of this technology on a massive scale could prove dramatic. Although individual market players kryptoIncluding Ethereumare looking for alternative solutions - one of them is the mechanism Proof from Stakeso far they are at the beginning of this road.