It appears as if the potential advantages of cryptocurrency are sometimes overshadowed by the expertise’s inherent vulnerability to exploitation.
And it’s true, crypto adoption does include dangers. Over the previous yr, governments from world wide have raised issues that crypto could possibly be used to finance terrorism or other illicit activity like money laundering. There have been prohibitive measures in every single place from China to Nigeria, with many crypto exchanges forced into a legislative chokehold.
Whereas crypto has its challenges, it has additionally develop into a device for policymakers and activists eager to make the world a greater place.
The local weather disaster
Throughout 2021, public scrutiny of Bitcoin (BTC) energy-intensive mining practices dominated headlines all yr lengthy — and for good motive. In response to Digiconomist, Bitcoin mining consumes the same quantity of vitality to a complete small nation just like the Netherlands or the Philippines.
Nevertheless, many environmental activists are already utilizing the exact same expertise as a device within the struggle towards local weather change. For instance, good token contracts have allowed charitable establishments to lift funds in a method by no means seen earlier than.
Many of those “charity tokens” have a tax system that costs a charge with each transaction, which may then be wired to a charity of selection. For instance, the World of Waves (WOW) token is on a mission to revive the planet’s oceans and fight local weather change.
In 2020, world’s oceans might have saved as much as 1 sextillion extra joules of warmth vitality than in 2019. Hotter water contributes to melting sea ice. Seas might have absorbed sufficient warmth final yr to boil 1.3 billion kettles of water. Purchase $WOW & help local weather conservation efforts. pic.twitter.com/4ehOOc2iq0
— World of Waves (Official) (@World_Of_Waves) November 13, 2021
The challenge has a transactional tax of 11% that’s redistributed again to all holders, 3.3% to the liquidity pool and 4.4% to the WOW charity pockets. Because the charity pockets grows, funds are extracted month-to-month for donations in direction of nature conservation actions and the preservation of wildlife. In response to the challenge’s Twitter web page, over $49,000 has already been donated. WOW chief working officer Kristijan Tot advised Cointelegraph:
“It is all about making a constructive affect on causes world wide whereas shining the highlight on NGOs and creators.”
On this method, charitable giving is hardwired into the token’s underlying algorithm. Not solely that however holders are additionally incentivized to speculate and keep invested within the challenge.
WOW is not the one crypto challenge utilizing one of these expertise to lift funds for an environmental trigger.
Solarcoin distributes tokens as a reward to individuals who set up photo voltaic arrays of their houses or companies. The idea is that when the worth of the coin exceeds the vitality manufacturing price, photo voltaic will successfully develop into free. The challenge’s web site states:
“As of as we speak, cryptocurrencies are price over US$2 trillion. Most of that worth was distributed in change for carbon-intensive crypto mining. What if it was given out to individuals who produced vitality totally free?”
Black Lives Matter
In fact, environmental conservation isn’t the one challenge crypto tasks have tried to deal with over the previous yr. In June, the world watched in outrage as George Floyd was murdered by a police officer. His loss of life sparked renewed momentum for the Black Lives Matter motion — and no scarcity of controversy within the crypto group.
As beforehand reported by Cointelegraph, a bunch tried to money in on the turmoil by releasing a George Floyd token, a challenge rife with shaky tokenomics and an unclear fee system. It was additionally reported that an individual attended the protests holding a sign claiming “Bitcoin will save us.”
Regardless of the apparent dangerous style of those remoted situations, the broader group primarily rallied for the trigger. For instance, the Giving Block introduced an answer for his or her customers to particularly donate to nonprofits supporting the Black Lives Matter motion such because the Chicago Neighborhood Bond Fund, Motion for Black Lives and the Bail Undertaking.
Again in 2020, the crypto fundraising platform partnered with Gitcoin to launch its #CryptoForBlackLives marketing campaign. Initially, Gitcoin matched donations as much as $25,000 by a group grant. Nevertheless, that tally was boosted to over $100,000 by the marketing campaign’s completion.
Black activists have additionally labored tirelessly to make sure their communities are in a position to profit from the financial beneficial properties that crypto has to supply. Founder and lead engineer of Guapcoin (GUAP) Taviona Evans says that her platform was in a position to accomplish extra in 2021 than any yr prior. GUAP was created to assist shut the wealth hole in Black communities and help Black-owned companies in america. She advised Cointelegraph:
“We have sparked consciousness about crypto amongst a inhabitants with much less entry and schooling in crypto and finance — and we proceed to take action.”
One other space of charitable giving the place crypto tasks have made a distinction this yr has been healthcare and psychological well being. In 2021, the well being of many individuals world wide suffered immensely because the COVID-19 pandemic continued to unfold.
Maybe one of many extra sudden outcomes of the coronavirus was its profound impact on crypto and blockchain, which may be traced to the pandemic’s genesis in late 2019.
A lot of crypto funds and tokens have additionally emerged to help communities world wide which have suffered from outbreaks of the virus. In April this yr, Polygon co-founder Sandeep Nailwal created the COVID-Crypto Relief Fund as a crushing second wave of the virus tore by his house nation of India.
The fund was in a position to elevate a whopping $429.59 million by mid-October, with Ethereum founder Vitalik Buterin, Australia cricketer Brett Lee and Coinbase chief expertise officer Balaji Srinivasan amongst its contributors.
#India @CryptoRelief_ @VitalikButerin @RyoshiResearch
The #India #Covid #Crypto Aid Fund donation has been spent! That is excellent news for everybody! For those that supported the donation, and likewise for those that opposed!
What do you suppose #ShibArmy?https://t.co/dbxNx84bVF pic.twitter.com/fe7w5swdge
— SHIB INFORMER (@ShibInformer) September 26, 2021
Is crypto a pressure for social good or dangerous?
If there has ever been a yr to show that crypto is really morally agnostic, it was 2021. Around the globe, the identical expertise used to finance terrorism was additionally used to fund healthcare amid the COVID-19 pandemic. Whereas the world argued concerning the affect that energy-intensive BTC mining tasks have on the surroundings, others created crypto tasks and tokens to save lots of our planet.
As we transfer into 2022, whether or not crypto is a pressure for good or dangerous stays within the eyes of the holder.