As blockchain technology continues its disruptive influence across various sectors, its environmental implications have raised concerns about long-term viability and global repercussions. This chapter explores the concept of “green blockchain” as a framework for sustainable alternatives. It delves into the transition to energy-efficient consensus mechanisms like proof of stake. The chapter also addresses the regulatory landscape, ethical considerations, and future prospects, including the integration of artificial intelligence to optimize blockchain processes. Despite the potential benefits, challenges such as regulatory uncertainty, scalability concerns, and privacy risks underscore the industry's need to navigate carefully and strike a balance between innovation and environmental responsibility. The chapter advocates for a collective effort to build a culture of sustainability within the blockchain community and highlights successful community-led initiatives and regulatory frameworks as crucial elements in mitigating the environmental impact of blockchain technology.
Top1. Introduction
Blockchain technology has become a disruptive influence across multiple sectors due to its decentralised and transparent characteristics (Mubarik et al., 2021). Nonetheless, this technological marvel is not devoid of environmental disadvantages, which raises concerns regarding its long-term viability and global repercussions. Fundamentally, blockchain operates as a decentralised and distributed ledger, wherein transactions are documented across an interconnected system of computers (Polas et al., 2022). Every individual transaction is contained within a “block,” which is interconnected in a chronological fashion to form a record that is both secure and impervious to tampering. Although the technology rose to prominence alongside the emergence of cryptocurrencies like Bitcoin, its utility transcends digital currencies in a substantial way. Decentralised financing, smart contracts, and supply chain administration are merely a few of the numerous applications of blockchain.
Blockchain is predicated on the tenets of decentralisation, immutability, and transparency. Decentralisation mitigates the potential for manipulation or corruption by obviating the necessity for a central governing body (Joshi et al., 2024; Nygaard & Silkoset, 2023). Immutability guarantees that data entered onto the blockchain is resistant to modification or deletion. By permitting all network participants to observe and authenticate transactions, transparency cultivates a sense of confidence among users. Notwithstanding its capacity for profound change, blockchain technology has encountered censure regarding its ecological ramifications, predominantly attributable to the energy usage inherent in specific consensus mechanisms, including Proof of Work (PoW) (Bradu et al., 2022). In order to validate transactions and append blocks to the blockchain, miners are obligated to solve intricate mathematical riddles using PoW, the consensus algorithm employed by Bitcoin. This procedure necessitates a significant quantity of computational resources and, as a result, energy. Significant environmental challenges are presented by blockchain technology. It has been suggested that the energy usage linked to cryptocurrency mining is comparable in magnitude to the carbon emissions of entire nations. Given the increasing impacts of climate change and the pressing demand for environmentally favourable solutions, it is apparent that a more sustainable approach to blockchain technology is imperative.
In light of the expanding adoption of blockchain technology, it is critical to investigate sustainable alternatives and mitigate its environmental impact (Mohan et al., 2024; Bada et al., 2021). It is imperative to comprehend the distinct environmental obstacles that blockchain presents in order to formulate well-informed resolutions that harmonise technological advancement with ecological accountability. In order to underscore the gravity of the matter, a multitude of studies have emphasised the energy consumption and carbon emissions of widely used blockchain networks. As an illustration, the annual energy consumption of the Bitcoin network in isolation was estimated by Digiconomist to be comparable to that of several minor countries (Alzoubi & Mishra, 2023; Göçen & Kurubacak, 2023; Garg et al., 2024). The urgency for immediate action to enhance the environmental sustainability of blockchain technology is highlighted by these alarming statistics. As a resolution to the environmental issues that conventional blockchain approaches present, the notion of “green blockchain” materialises as a framework focused on finding solutions. The term “green blockchain” pertains to the integration of environmentally sustainable practises, technologies, and consensus mechanisms that aim to reduce energy usage and adverse effects on the environment (Sharma et al., 2020). This chapter seeks to introduce and explore various aspects of green blockchain, including the transition to more energy-efficient consensus mechanisms like Proof of Stake (PoS) and the adoption of sustainable mining practices (Khan et al., 2021). By examining successful case studies and community-led initiatives, the chapter aims to showcase the feasibility and benefits of integrating green principles into blockchain technology.