In mid-December, Tron (TRX) blockchain founder Justin Sun openly backed Swedish climate activist Greta Thunberg with a sum of $1 million to promote worldwide awareness of global warming issue.
Even though Sun has come forward to back her campaign with a sum of $1 million, there is no clarity as to how crypto will assist in minimizing carbon footprints through the adoption of decentralized settlement mechanism.
In this regard, Sun explained that decentralized settlement and other financial platforms operate on cloud, thereby eliminating the requirement for physical (paper) based documentation.
“Decentralized settlement and decentralized finance are completely run by computers on cloud computing systems, thus eliminating the need for ledger documentation and management records kept on paper.”
At the end of COP25 UN Climate Conference in Madrid (Spain), Sun tweeted:
Furthermore, cloud computing platforms do not depend on any kind of physical movements as the entire framework is digital. With such systems in place, traveling is minimized thereby decreasing the burden on environment by the travel industry, which accounts for roughly 8% of worldwide carbon emissions.
“These types of records require postal mailing which is done through transportation. The whole Know Your Customer process also requires face-to-face interaction, which sometimes makes it necessary for people to travel. All of this will not be compulsory when decentralized finance is utilized.”
Sun also highlighted that using a PoS (Point of Sales) system could decrease energy consumption that happens in conventional Proof-of-Work (POW) mining systems utilized by Bitcoin.
This is illustrated by a study which indicated that Bitcoin mining is responsible for generating 22 megatons of carbon dioxide each year, an equivalent of emission made by Vienna and Las Vegas put together.
“By adopting a POS system, it drastically reduces the massive energy consumption used in traditional POW mining method used by Bitcoin.”
Finally, Sun argued that decentralized financial solutions, being readily available across the globe, is extremely beneficial.
“Decentralized finance systems are available to everyone in the world! Bank the unbanked. Today, the traditional finance system is limited, expensive and not cost effective. Enormous resources and steps are required just to open an account. Imagine having to serve a heavily populated country and all the wastage that ensues. I truly believe blockchain must be in our future if we want to eliminate wastage and make a difference.”
