How can blockchain be used to support sustainable business practices?

October 6, 2022 / Digital Services

Do you know all about current-day blockchain development?

Cryptocurrency has been realigning the world of finance for as long as we can remember now. There’s just no stopping the accelerated progression that they’ve been bringing to the table. Blockchain technology has been driving us to reimagine the entire nature of businesses across several industries including healthcare, finance, insurance, retail, and whatnot.

The best part is the technology is simply secure from its very foundation and recording any information or hacking for transaction access is impossible. It’s a very closed network that offers complete privacy with every single interaction or financial transaction. But at the same time, there is no room for manipulation of information and it aids a much more traceable and transparent process flow in every sector there is. The digital distribution and a ledger that is decentralized can be verified seamlessly across any vertical. Transparent supply chain tracing is how it can instill sustainable business practices

Not just on an individual level, it can collectively drive businesses to more ecological conscience. For example, there are already avenues for businesses as a platform for carbon trading. Here businesses can buy and sell carbon credits that will further drive them to reduce their offset emissions thus bringing about an impact globally. In the longer run, more and more businesses including even brick-and-mortar shops will have collective mindsets to stop emissions on a global scale thus navigating us towards a net zero solution sooner than not.

Key pointers on how blockchains can drive businesses toward better sustainability

1. Transparent supply chains

Here any supply chain for the matter can be traced back to the original source. The digital records of all transactions can be organized for public disposal and can be chronologically viewed at any point in time. This will strike out any possibilities for manipulation of records since the ledgers are ardently processed in place.  Consumers are given the option to make decisions based on transparent records and make more informed choices that are based on actual information. This will again drive businesses to make their process flow efficient, sustainable, green, and eco-friendly and realign their entire supply chain efforts to strategically align with these principles to attract customers more.

2. Carbon markets

With carbon markets increasingly getting tractions, it’s soon going to become a trade-worthy commodity like no other. Carbon credits that businesses achieve by reducing their consumption, improving disposal strategies, and eliminating the need for going with practices that are economically better while at the cost of hurting the environment. Businesses can rather limit their profits by being more ecologically conscious and they can reap the reward they deserve with the carbon credits that they can take home from the effort.

3. Food wastage? Not on the books anymore!

blockchainAs stated earlier, blockchain aids in the continuous monitoring of the end-to-end supply chain and thereby can help us instill better operational flow and enhance overall efficiency. There is already an app called Foodtrax which is foundationally developed through blockchain development. The app basically monitors the end-to-end of the operation right from its origin to final customer delivery. This will help keep a keen eye on the overall nature of food handling and thereby reduce any inefficiency or wastage that might happen along the way. The resources in the picture would be held much more accountable for all the work they bring to the table. This innovative solution might just be everything we have been searching for all along across diverse areas.

4. Recycling programs

Financial incentives can be allotted for every single recycling program and the rewards can be in the form of crypto tokens that people can benefit significantly from. Everything from the earnings, the volume of non-perishable recycled, and the cost can all be kept carefully on track. This will encourage sustainability from our core since almost every one of us will get down to the roads to clear things up if we understand that there’s a reward waiting on the other end.

There are already incentives in place especially in third-world countries for recycling ocean plastics. There is also a program called RTC (Recycle To Coin) that offers crypto rewards for recycling aluminum, plastic, and steel cans.

5. Promoting green finance

Crowdfunding has long been in practice but its authenticity is still questioned even when it comes to genuine causes because people have long been deceived by all the wrong sources. Since blockchains provide added transparency and ardent ledger maintenance for public access, the nature of your spending can all be closely monitored to make better sense of every last penny you’ve spent.

This way even the drive towards sustainability can all be appropriately met. Since people know that their money is not going to a lost cause, it’ll drive a better initiative among the masses to contribute in ways they can as they deem fit.

6. Operationally more efficient

Functionally realigning all your operations to drive towards better collaboration and improved transparency in the operations is all possible with blockchain development. Minimizing surplus inventory, understanding market appetite better, and also tracking the supply chain process all way starting from production, shipping, transit, and end customer receiving it are all a part of this entire process.

When you hire a blockchain development company as your consultant, they’ll navigate you just in the right direction to offer you everything that you need. At YCSPL, we have already worked on digital transformation for a lot of companies and have introduced them to the world of blockchain already.

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