Blockchain and sustainability: how technology supports sustainable development

What is blockchain? How does it work? Can it be used for environmental sustainability? Let's find out together.
In this article
Blockchain: what it is and how it works. Let's start from the basics
The link between sustainability and blockchain ‍
What can be the applications of blockchain for environmental sustainability?
Blockchain and compensation: how Up2You uses this technology
Blockchain and green energy: how we offset our own emissions
Blockchain and sustainability
Written by
Luigi Ammirati
Published on
20.9.2024

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Blockchain: what it is and how it works. Let's start from the basics 


This is a technology that allows save digital information (the so-called 'blocks') in a secure, decentralized and transparent computer system. You may have heard of it with reference to bitcoin or other cryptocurrencies, but the reality is that it has many other applications.

La blockchain can be used to record any type of information, from the purchase of a property, to the hiring of an employee.

Each block contains information about the previous block, creating a sequence of events that cannot be altered in any way, making this technology an extremely secure and reliable way to store data and exchange value

Based on the work of deciphering the algorithms behind each cryptocurrency, blockchain could be both an opportunity and a risk for sustainability. Let's find out why.

Blockchain blocchi

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The link between sustainability and blockchain


In common thought the blockchain technology It doesn't have much to do with the sustainability, on the contrary, is seen as extremely harmful to the environment. Which is partly true, in fact the blockchain often requires the use of enormous amounts of energy:

  • that of the PCs that are used to resolve 'blocks';
  • that of the servers that collect the blocks already solved;
  • the one that computers use to create increasingly complex algorithms.

But where does this excessive energy consumption come from?


Most likely, when you are dealing with a highly energy-intensive blockchain, you are faced with a so-called technology “Proof of Work”. This is based on solving complex mathematical problems through the use of miners, who compete with each other to find the solution to the problem, grabbing the possibility of adding a block to the chain. The process as a whole is called 'mining'.

The problem with this technology is that the more complexity of the calculation increases, the more the power needed and therefore the electrical energy used increases. It is estimated that the largest blockchain Who use this technology consume annually between 35 and 140 TWh of electricity, with a continuous consumption of between 3 and 15 GW of electricity.

To understand the extent of this consumption, just think that if the Proof of Work blockchain were a country, it would be the 27th country in terms of annual energy consumption, surpassing states like Vietnam and Argentina.

buts Is there a way to use blockchain without having such a high impact on the environment? According to some scholars in the field, yes.

The chief researcher of MIT's Digital Currency Initiative, Michael J. Casey, argues that precisely the enormous Expenditure of energy to support the blockchain It could lead the world of telecommunications to take a leap forward in Green Energy*.

It is with this purpose that technology was born in 2011 “Proof of Stake”, as a solution to the continuous increase in energy consumption necessary to support the mining process. This technology involves' validators', who guarantee the validity of transactions by committing a share of their cryptocurrencies (the stakes) within the network as a sort of guarantee, or security deposit. The higher the amount deposited, the greater the chance of being selected.

La Proof of Stake technology it is also more secure, scalable, and most importantly it has lower environmental impact compared to Proof of Work. These characteristics make it a valid alternative for a more sustainable blockchain having a very low associated energy consumption.

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What can be the applications of blockchain for environmental sustainability?


The technology blockchain so, especially if Proof of Stake, is a powerful tool, which can be used to support sustainable practices in many ways, including:

  • improve sustainable supply chain management;
  • promote and encourage recycling;
  • improve the efficiency of energy distribution.


But not only that, it can help track illegal activities such as logging and poaching, and it can also be used in monitoring natural resources such as water, food and energy supplies.

In addition, it helps prevent fraud, because it is not possible to falsify an entire chain of industrial records without more people being involved.

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Blockchain and compensation: how Up2You uses this technology


Is there a correlation between blockchain and emission compensation? In Up2You, yes!

In fact, we have chosen to assign carbon credits in the form of NFT, a sort of 'digital certificate' issued through the blockchain, which guarantees authenticity and uniqueness. After purchasing carbon credits through our services, NFTs are collected in a zero-emission register: Registry.

Here you can check all your compensation data (the amount of CO₂ compensated, the environmental project you are supporting with your commitment) and share them publicly. Our system is transparent and secure: the blockchain, in fact, is not proprietary and is not centralized.

For every ton of CO₂ compensated by your company, you will receive a unique reference that accredits you with responsibility for this environmental benefit and that provides complete traceability: what is the sustainable project that captured that CO₂, the geographical position of the project and the international certification standard.

The register is then made public. and you can share it with investors, partners and customers to improve the strategy of sustainability communication of your business.

La blockchain technology What we use is Proof of Stake, and in particular MATIC (Polygon), one of the technologies more performing and efficient, and therefore with lower energy consumption.

Blockchain e sostenibilità: carbon credit

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Blockchain and green energy: how we offset our own emissions


As we explained above, the creation of NFTs, their writing and their storage also create CO₂ emissions (although to an extremely small extent), as well as all the digital activities that become part of Digital Carbon Footprint of a company.

In our case, we have chosen upstream to compensate them, to ensure that Is our blockchain system carbon neutral.

Do you want to take advantage of the power of blockchain and start a path of environmental sustainability by keeping track of your every action? ‍
Contact us to receive more information!

*Source: Coindesk