What Unsolved Challenges Can Blockchain Solve

Blockchain technology has the potential to solve many of the world's most urgent environmental problems by disrupting the world's management of its resources. According to a report published by the World Economic Forum (WEF), PricewaterhouseCoopers (PWC) and Stanford woods Institute for the environment, the application of blockchain can help protect the environment, from decentralizing control over natural resources to fully transparent supply chains in different industries.

Blockchain technology and its role in the fourth industrial revolution

As a decentralized electronic ledger, blockchain technology plays an important role in the fourth industrial revolution. Blockchain technology can help solve existing environmental problems and change the way humans manage the shared global environment by changing today's trading mode.

Any transaction involving currency, goods, property and even voting value can benefit greatly from the blockchain system. According to this report, with the maturity of blockchain technology, it is important to understand its great potential in helping mankind and the earth.

Celine herweijer, partner of PWC in charge of sustainable development and innovation movement, said: "blockchain is the basic emerging technology of the fourth industrial revolution, just like the Internet in the last (or third) industrial revolution."

"Blockchain is not just a tool to support digital currency. At the most basic level, it is a new, decentralized and global computing infrastructure that can change many existing processes in business, governance and society."

Blockchain technology can solve these eight environmental challenges

According to the report, analysts pointed out that there are more than 65 and emerging blockchain environment use cases. These use cases revolve around transformative solutions to eight key environmental challenges.

These measures include creating a transparent supply chain, providing clear traceability for products from source to storage, and a decentralized sustainable resource management platform, so as to change the current way of resource management.

Changing the existing process of managing resources may even lead to circular economy. Individuals, companies and governments can release financial value from resources currently considered to have economic value.

Blockchain based financial platforms can also help provide more funds. The report points out that this may involve raising trillions of dollars, from investment at the retail level to charitable donations to declining economies and developing countries. The use of encrypted tokens can also change the existing market environment and bring new opportunities for credit transactions.

Blockchain technology can also create a new system for automatic disaster preparedness and humanitarian relief, so that information can be shared and transparent activities can be carried out to improve efficiency immediately after disasters. However, these systems are not limited to disaster relief, but can also be used to change the existing sustainability monitoring, reporting and verification processes of many organizations and industries, thereby promoting a new form of accountability.

In general, blockchain technology can even catalyze or shape the earth management platform. Although it may now be technically and logically difficult to develop these platforms, they can be an exciting and interesting concept that can be explored at present.

Defects and risks of blockchain Technology

The report points out that these game rule changers and blockchain use cases may have a huge impact and bring great potential for a new sustainable future. However, like many new technologies, blockchain technology also has some disadvantages, risks and challenges. Although this technology is quite new, there are still problems in scalability and interoperability. PwC pointed out in a report in August 2018 that many challenges are also in the regulatory and legal fields because stakeholders do not fully trust this new technology.

Sheila Warren, technical director of blockchain and distributed ledger of the fourth industrial revolution center of the world economic forum, said: "blockchain has fundamentally redefined the way business, government and society operate, which has attracted a lot of publicity."

"Despite this publicity, there are still many challenges to overcome - it is still a rapidly developing emerging technology."

However, Warren added that now is a good time for stakeholders to unite and ensure that new blockchain solutions consider people and the earth.

Source: chain digging net