Global organizations recognize blockchain as a socially relevant technology. The UN has used blockchain in its projects over the past two years and has successfully tested the technology. Given the impact and scale of the UN 's work, blockchain could be a key component of future social change.
The UN notes
that despite blockchain’s current reputation, the technology can strengthen efforts to combat climate change. The experts don't dispute that the network behind Bitcoin – currently the most popular cryptocurrency – consumes an unconscionable amount of energy and that the cryptocurrency itself is volatile. The UN’s focus isn't on Bitcoin and its problems but on blockchain technology as a tool for creating social impact and improved sustainability.
The UN includes 193 member states. This means that once the organization has completed its initial projects and summarized the results, blockchain use may spread more easily.
The technology was originally developed to enable cryptocurrency transactions. The system is perfect for transferring data about anything of value, services, and even people's actions. Trust is not created through the control of one person or a group of people but through consensus, cryptography, collaboration, and intelligent code.
The UN believes that blockchain can make the market fairer by building in greater accessibility and transparency. The widespread adoption of blockchain would give billions of marginalized people access to the economy and fair wages. More people would be able to make payments, save, and obtain credit for the first time.
Blockchain can provide greater access to financial services for people and businesses in places where banking is difficult to access or bank services are too expensive. Reducing the influence of bureaucracies and legislative shackles will open up new opportunities for small entrepreneurs, giving a boost to small businesses. At the same time, small farmers would have access to global supply chains. That's what a joint program
launched by FCE, TransparenTerra, and Synergos in Kaduna, Nigeria aims to do.
Blockchain improves the tracking of investments and donations. For example, UNICEF uses cryptocurrencies and NFT
as a way to manage finances for charitable activities.
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UN Environment Programme (UNEP) specialists also believe blockchain is a useful tool that can help them achieve their goals. Through blockchain, organizations can record the impacts of their environmental activities and investments, automatically calculate their carbon emissions, and note reductions or increases.
Blockchain can make energy more sustainable through better management of energy from renewable sources. Because such sources are inherently intermittent and decentralized, blockchain technology can provide a platform for managing them more effectively and creating new markets for clean energy, the UN has said.
Blockchain experts now face several challenges. First, global social projects require a blockchain model that consumes minimal energy
. The UN notes that such developments and solutions exist but have yet to be tested. One such solution has been developed by FCE.
Second, blockchain development needs proper regulation. The technology may not reach its peak if the user community pursues its short-term interests. Blockchain may also be influenced by government and corporate leaders who want to preserve the old financial paradigms.
MediaArticlesHow the United Nations views blockchain