In recent years, blockchain technology has received a lot of negative attention in terms of sustainability. Traditional blockchains like Bitcoin, which use a “Proof of Work” mechanism to create new blocks, use a lot of energy because of the required computational power. Research can be found online, that shows that the Bitcoin network uses much energy as a small country like Sweden.

This is such a shame since blockchain technology has the potential to help create a more sustainable world, if used correctly. And exactly this is one of the missions of the Vechain Foundation:

Fight for sustainability. Fight for a better future

Proof of Authority

Proof of work (PoW) is a consensus algorithm used in many blockchain networks, including Bitcoin, in which nodes compete to solve complex mathematical problems in order to propose and vote on the next block in the chain. This process, known as mining, requires a lot of computational power and energy, and it is designed to be resource-intensive in order to secure the network.

Vechain however uses a Proof of Authority (PoA) consensus algorithm, that allows certain nodes, or “validators,” to propose and vote on the next block in the chain. These validators are chosen based on their reputation or identity, and they are responsible for ensuring the integrity and security of the network.

One of the main differences between PoA and PoW is that PoA is generally considered to be more energy-efficient and sustainable than PoW. This is because the process of mining in PoW requires a significant amount of energy, as miners must constantly run their computer hardware in order to solve mathematical problems and earn rewards. This can be a major drain on energy resources and contribute to carbon emissions.

In contrast, the process of validating transactions in PoA does not require as much energy, as validators do not need to constantly run their computer hardware in order to participate in the consensus process. This makes PoA a more sustainable and energy-efficient alternative to PoW, as it reduces the carbon footprint of the network.

A research done by Centre Testing International Group Co. Ltd. showed that running the entire Vechain blockchain for a whole year, consumes as much energy as mining 2.4% of a single BTC, or processing 4.3 transactions on the Bitcoin blockchain.

5 ways in Which Vechain’s Blockchain can help create a more sustainable world

But the Vechain Foundation doesn’t just stop at making sure the blockchain minimizes energy consumption. The Foundation is actively applying Blockchain technology to promote a sustainable way of creating products and living.

Promotion of sustainable practices

By using Vechain’s blockchain, companies can demonstrate their commitment to sustainable practices and provide evidence of their efforts to consumers. This can help encourage more sustainable practices within the industry and create a positive feedback loop where companies that prioritize sustainability are rewarded with increased consumer trust and loyalty.

For example, Vechain can be used to trace the origin and quality of food products, such as fruits and vegetables, to ensure that they are grown using sustainable and environmentally-friendly methods. This can help consumers make more informed choices about the products they buy and encourage companies to adopt more sustainable practices.

MyStory – A service built by DNV on the Vechain blockchain to help make customers more informed choices

Encouraging circular economies

Vechain’s blockchain can also be used to promote circular economies, where resources are kept in use for as long as possible, rather than being discarded after a single use. By providing a detailed record of a product’s journey, Vechain can help facilitate the reuse and recycling of materials, reducing the demand for new resources and reducing waste.

Support the development of renewable energy technologies

Blockchain technology can be used to track the development and deployment of renewable energy technologies, such as solar panels or wind turbines, and to verify that they are being used as intended. This could help to increase the adoption of these technologies, which can help to reduce greenhouse gas emissions and other environmental impacts.

Carbon credits

Vechain is working on a carbon credit platform that allows companies to offset their carbon emissions by purchasing carbon credits from projects that are working to reduce or remove greenhouse gases from the atmosphere. By using this platform, companies can offset their carbon footprint and contribute to the transition to a low-carbon economy.

Carbon credits application developed by BYD, DNV and Vechain.

Reduction of waste

By providing a detailed record of a product’s journey through the supply chain, Vechain can help reduce waste by identifying inefficiencies and areas where waste is generated. For example, if a product is being transported inefficiently or is being stored for long periods of time, this information can be used to streamline the supply chain and reduce waste.

By using smart contracts and other blockchain-based tools, Vechain can streamline the process of tracking and verifying the movement of goods, reducing the need for manual labor and paper-based documentation. This can help to reduce waste and lower the environmental impact of supply chain operations.

Overall, Vechain’s blockchain technology has the potential to make a significant contribution to the creation of a more sustainable world. By promoting transparency, sustainability, and resource efficiency in businesses, Vechain can help companies identify and address the environmental impacts of their operations, and take steps to reduce their carbon footprint and promote a more sustainable future.

However, it is important to note that the implementation of Vechain’s solutions alone is not enough to achieve sustainability. It requires a collective effort from all stakeholders, including businesses, governments, and consumers, to adopt and support sustainable practices in order to truly create a more sustainable world.