In recent years, governments and organizations all over the world have focused on using various technological tools to address climate change challenges and biodiversity loss. Blockchain is one of the tools that could be highly effective in combating the climate crisis. So, this blog will explain why new startups should explore environmentally friendly blockchain.

Through three vital underlying mechanisms, blockchain can address various environmental sustainability challenges

Among other benefits, blockchain can address various environmental sustainability challenges, promoting environmental sustainability through three fundamental underlying mechanisms: resource rights, product origins, and behavioral incentives.

Why new startups should explore environmentally friendly blockchain

It could facilitate new green production methods, monitoring and storing data-related activities that cause pollution and environmental degradation, real-time collection and analysis of green or low carbon data for timely decision making, and promoting the development of a green supply chain.

This technology can support the creation of sustainable environmental supply chain monitoring and reduce CO2 emissions along the supply chain, as well as monitor the exchange of dangerous waste and create a system of incentives favoring recycling, improving circular economy practices, and monitoring the use of natural resources, particularly in the agri-food industry.

For investors, environmentally friendly blockchain development is desirable

Large-scale international sustainable development projects have become highly complicated, resulting in delays and backlogs. Transactions can be managed highly effectively and efficiently using blockchain-enabled processes and platforms. As a result, sustainable development and other climate-related initiatives appeal to investors. Blockchain-enabled techniques and platforms can aid in the management of stakeholders who work in various capacities. This will help increase efficiency, reduce transactions, and make climate-related sustainable development extremely beneficial to private investments.

According to a UNEP report, blockchain’s distributed ledger technology can provide significant benefits by allowing investors and renewable energy project developers to collaborate, and purchasers to collaborate on a common platform with established global compliance due diligence standards.

Blockchain technology has the potential to be used in environmentally friendly supply chain practices

Why new startups should explore environmentally friendly blockchain

Blockchain technology can also be used for environmentally friendly and sustainable supply chain practices. By making supply chains transparent, the technology can track products from the manufacturer and help prevent inefficiency and waste. Blockchain can also assist consumers in better understanding how their products are manufactured and shipped. This will enable them to make more environmentally friendly decisions.

Foodtrax is a Blockchain-based dApp that aims to track food from its origin to the shelf to eliminate food waste caused by improper storage and handling. Food Trax has interconnected data temperature loggers and equipment measuring and monitoring through their Blockchain-based dApp, focusing on developing a flexible solution that covers all supply chain steps with transparency.


According to the report, Blockchain technology has the potential to help solve the environmental crisis and improve sustainability in a variety of ways. However, increasing the adoption of emerging technologies such as blockchain will necessitate improving digital infrastructure. Policymakers must adjust regulations to help design future energy systems and mitigate environmental risks as blockchain and related digital technologies develop rapidly. If you need a top-tier Blockchain development service, contact SmartOSC.

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