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The value of a currency is based on its stability and how it has stood the test of time, including how it has performed in various economic climates. A currency must be relatively stable and function as intended. The value of most currencies came initially from their innate properties. The issue of ascribing a currency with a specific value has always been tricky, even more so with the advent of fiat currencies because their value is not attached to a commodity.
Humans have used various commodities throughout history to conduct economic activity, ranging from agricultural products to precious metals. The use of coins as currency first started in Mesopotamia c. 625 BCE. Despite this early introduction to using coinage, our agrarian-based ancestors conducted most economic activity using the barter system. Physical goods, mainly agricultural products like cocoa and wheat, were exchanged for goods that couldn’t be made on the farm. Eventually, humans began replacing the barter system with precious metals. These metals were minted by the state (government) into a state-issued coin. Coinage was much easier to transport over great distances than other commodities.
Programmers created cryptocurrency to combat the issue of fluctuating currency values. Part of the value of a cryptocurrency comes from the idea that it has its specific purposes and functions. They all have problems they were designed to solve.
What Is Ethereum Cryptocurrency?
Programmer Vitalik Buterin designed Ethereum to be a decentralized, open-source blockchain. Ethereum is unique because it is a very traceable, smart contract. A smart contract is a program that oversees all parts of an agreement, from the beginning to the end, without the need for other aspects of business like contract law. Although Bitcoin has similar attributes, Ethereum makes these properties its primary selling point, making it reliable. It is smart contracts that make the technology function properly.
How Does Ethereum Work?
Ethereum keeps a record of every transaction that takes place in its blockchain. Meaning it can record vast amounts of traceable data. Unlike other blockchains, Ethereum can perform computations and store and exchange information.
Ethereum can help combat climate change by tracking carbon emissions efficiently. Currently, the methods used to track carbon emissions, to a large degree, are ineffective because the figures collated are mostly conjecture and guesswork. With Ethereum, everything changes because you gain the resources needed to track precisely how much carbon each automobile emits. We can measure exactly how much carbon is released by equipping each car with a sensor. Nick Sexton, on an episode of The Crypto Show, explained this to Stevie Johnson when he said, “It would be proven that it came out of that particular sensor because it’s tied to that particular private key, just how you can know that a Bitcoin transaction came from one particular address. You can do the same thing with Ethereum, and if you start putting these sensors everywhere…you can start to track just how much is being emitted.”
Is Ethereum Better Than Bitcoin?
Ethereum is much more than just a cryptocurrency. There are different ways through which Ethereum can help combat excessive carbon emissions causing damage to the atmosphere. Apart from using it to track emissions from automobiles and power plants, developers can use Ethereum for crowdfunding to pay for the development of other energy sources. Individuals will see exactly how much carbon they are contributing to the atmosphere. It becomes easier for people to hold themselves accountable when they see their personal impact on the environment.
Another use for Ethereum is tracking the carbon emissions from Bitcoin mining via the blockchain network and making the miners pay using renewable credits. An added advantage is that Ethereum is a cryptocurrency with low energy consumption.
What Is The Green New Deal?
The Green New Deal is the response by some organizations and politicians to climate change that involves getting rid of resources like coal and petroleum, which contribute significantly to climate change. One of the arguments for this solution is that the current free-market solutions to climate change have had minimal effect on the problems associated with climate change. While addressing these issues isn’t necessarily wrong, Nick Sexton has several concerns about the Green New Deal.
- It is a more socialist approach that takes power away from the free market.
- It cares little for other solutions to climate change, like using other energy sources different from those currently in use.
- The Green New Deal gives too much power to the government.
The Bottom Line
Ethereum blockchain technology has many uses beyond its cryptocurrency, ETH. Its ability to compute, store, and share massive amounts of data in a decentralized way makes it perfect for combatting global issues like climate change.
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