In recent developments, the stakes are high as the Web3 ecosystem grapples with climate change and the associated narrative that portrays blockchains as damaging to the environment. The chief executive officer of Celo, Marek Olszewski, notes that while the transition towards proof-of-stake (PoS) consensus mechanisms plays a significantly positive role in breaking this narrative, there remains a big picture of what can be done.
Olszewski states that in the face of the growing threat that climate change poses to humanity, various projects and companies are taking a turn towards becoming carbon neutral. The CEO asserts healthily that every project and company has the obligation to move towards carbon-neutrality, given the existential threats climate change presents.
The Web3 ecosystem, as viewed by the Celo executive, has progressed meaningfully in altering the damaging blockchain narrative. This advancement is anchored on the Ethereum Merge, a shift from the energy-intensive proof-of-work (PoW) consensus to a greener, environmentally friendly PoS system.
The merge and subsequent commitment towards offsetting carbon footprints not only attracts eco-conscious activists and individuals previously skeptical of blockchains but also generates room for innovation within the regenerative finance (ReFi) ecosystem.
When the potential benefits of employing blockchain-based systems for carbon offsets come to the forefront, Olszewski points to transparency and real-time verification. The typical carbon credit system is marred by a lack of transparency; with blockchain, stakeholders can attest with certainty that the carbon offsets remain valid.
The tech executive further provides several ways blockchain-based projects can offset their carbon footprint. These range from the common tree planting to restoring habitats for species, the use of biochar and direct air capture sequestration.
While the Web3 ecosystem engages climate change, a development worth noting is Google Cloud‘s recent partnership with Web3 startup Orderly Network to make DeFi mainstream. The collaboration aims to develop user-friendly developer tools for decentralized finance and address the challenges of self-custody and transparency issues.
Adopting blockchain technology could trigger easier mainstream adoption. The expectation is that, in making DeFi mainstream, a balance will be struck between processing speed and ample decentralization, without compromising the inherent advantages of a decentralized system. This engagement aims to address the entry barrier and security issues that have sprouted within the DeFi ecosystem.
The grand picture isn’t devoid of challenges. However, such collaborations forecast a future where the ingrained efficiency of a decentralized system thrives in blockchain technology. The Web3 ecosystem continues to generate ‘good strides’ even in the face of skepticism.
Source: Cointelegraph
