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Blockchain Applications and Sustainability Issues

Author

Listed:
  • Roberto Leonardo Rana

    (University of Foggia, Italy)

  • Pasquale Giungato

    (University of Bari, Italy)

  • Angela Tarabella

    (University of Pisa, Italy)

  • Caterina Tricase

    (University of Foggia, Italy)

Abstract

Blockchain, a distributed and democratically-sustained public register of the transactions of the digital currency “Bitcoin”, proposed by Satoshi Nakamoto a pseudonym of a hided developer in 2009, has been the driver of a huge number of initiatives devoted to develop and implement a peer-to-peer distributed database, and with no central authority created as an open source software. Expansion of Bitcoin, as well as other digital currencies, has been due to lower transaction costs, high security protocols and lack of inflation with respect to fiat money and no need of a clearing entity or a central bank. Although, environmental issues related to the use of this currency and, in particular, in the energy consumes, have been raised by the scientific community, but no signals of limiting factors have been detected until now. The hidden in the wings blockchain technology has been recognized the driver of innovation in various fields, contributing to create a more sustainable world. The purpose of this paper is to describe both the recent trends in the applications of the blockchain technology in the cryptocurrencies market and the new projects considering the environmental sustainability (energy consumption, materials depletion) and social impacts. The contribute of blockchain in reducing and accelerating bureaucracy and incentivizing environmentally friendly behaviour, has been discussed. Although the environmental issues related to the energy consumed in Bitcoin mining may scare companies in adopting the new technology, there is no evidence of limiting factors or carrying capacity of the entire system. In future the development of a less energy intensive alternative for validating the blocks to stack in the distributed database, would render the blockchain the ideal candidate for the applicability of sustainability paradigms in the economic, environmental and social sectors.

Suggested Citation

  • Roberto Leonardo Rana & Pasquale Giungato & Angela Tarabella & Caterina Tricase, 2019. "Blockchain Applications and Sustainability Issues," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 21(S13), pages 861-861, November.
    • Handle: RePEc:aes:amfeco:v:21:y:2019:i:s13:p:861
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Nien-Ping Chen & Kao-Yi Shen & Chiung-Ju Liang, 2021. "Hybrid Decision Model for Evaluating Blockchain Business Strategy: A Bank’s Perspective," Sustainability, MDPI, vol. 13(11), pages 1-22, May.
    2. Junjian Wu & Henry Xu, 2021. "Information Leakage and Financing Decisions in a Supply Chain with Corporate Social Responsibility and Supply Uncertainty," Sustainability, MDPI, vol. 13(21), pages 1-22, October.
    3. Marija Jović & Edvard Tijan & Dražen Žgaljić & Saša Aksentijević, 2020. "Improving Maritime Transport Sustainability Using Blockchain-Based Information Exchange," Sustainability, MDPI, vol. 12(21), pages 1-19, October.
    4. Omar Boutkhoum & Mohamed Hanine & Mohamed Nabil & Fatima El Barakaz & Ernesto Lee & Furqan Rustam & Imran Ashraf, 2021. "Analysis and Evaluation of Barriers Influencing Blockchain Implementation in Moroccan Sustainable Supply Chain Management: An Integrated IFAHP-DEMATEL Framework," Mathematics, MDPI, vol. 9(14), pages 1-23, July.
    5. Thomas Puschmann & Christian Hugo Hoffmann & Valentyn Khmarskyi, 2020. "How Green FinTech Can Alleviate the Impact of Climate Change—The Case of Switzerland," Sustainability, MDPI, vol. 12(24), pages 1-30, December.
    6. Yunfei Yang & Guifei Qu & Lianlian Hua & Lifeng Wu, 2022. "Knowledge Mapping Visualization Analysis of Research on Blockchain in Management and Economics," Sustainability, MDPI, vol. 14(22), pages 1-24, November.

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    More about this item

    Keywords

    blockchain; bitcoin; sustainability; energy consumption; cryptocurrency.;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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