The potential benefits of cryptocurrencies often seem to be overshadowed by the technology weakness inherent in exploitation.
It is true that cryptocurrency adoption is risky. Over the past year, governments around the world have expressed concern about the use of cryptocurrencies to fund terrorism or other illegal activities such as money laundering. Everywhere, from China to Nigeria, irresistible measures have been taken, and many cryptocurrency exchanges have found themselves in the grip of legislation.
While cryptocurrency is facing its problems, it has also become a tool for policy makers and activists looking to make the world a better place.
Throughout 2021, the public’s interest in energy-intensive Bitcoin (BTC) mining has dominated headlines throughout the year — and for good reason. Bitcoin mining uses the same amount of energy as a very small country like the Netherlands or the Philippines, according to the Digiconomist.
However, many environmental activists are already using the same technology as a tool in the fight against climate change. For example, smart code contracts have allowed charities to raise funds in ways never seen before.
Many of these “charity codes” have a tax system that charges a commission on a per-transaction basis, which can then be linked to additional charities. For example, World of Waves (WOW) is a symbol of the mission to restore the planet’s oceans and combat climate change.
The project has a transaction tax of 11%, which is redistributed to all holders, 3.3% to the liquidity pool and 4.4% to the WOW Charitable Portfolio. As the charitable portfolio grows, funds are drawn monthly for donations to nature conservation and wildlife conservation activities. More than $49,000 has already been donated, according to the project’s Twitter page. Christian Toth, CEO of WOW, told Cointelegraph:
“It’s about making a positive impact on causes around the world while highlighting volunteer organizations and innovators.”
Thus, charitable donations are linked to the algorithm behind the token. Not only this, but the owners are also encouraged to invest and keep investing in the project.
WOW is not the only crypto project using this type of technology to raise funds for environmental needs.
Solarcoin offers tokens as a reward to people who install solar panels in their homes or businesses. The theory is that when the price of a currency exceeds the cost of producing energy, solar energy is actually free. The project website states:
Today, cryptocurrencies are worth more than $2 trillion. Much of that value has been distributed in exchange for carbon-intensive cryptocurrency mining. What if it was distributed to people who produce energy for free? ”
Black life means something
Of course, environmental protection isn’t the only problem crypto projects have tried to solve last year. In June, the world angrily watched a police officer kill George Floyd. His death gave a new impetus to the Black Lives Matter movement – and caused a lot of controversy in the crypto community.
As previously reported by Cointelegraph, the group attempted to monetize the turmoil by issuing the George Floyd Token, a project filled with shaky tokens and a mysterious payment system. It was also reported that one person took part in the protests, holding a banner “Bitcoin will save us.”
Despite the apparent lack of taste of these isolated cases, the broader community essentially came together for a common cause. For example, Giving Block has offered a solution for its users to make donations to non-profit organizations that support the Black Lives Matter movement, such as the Chicago Community Bond Fund, the Black Lives Movement, and the Bail Project.
In 2020, the cryptocurrency collecting platform teamed up with Gitcoin to launch the #CryptoForBlackLives campaign. Gitcoin originally raised donations of up to $25,000 through a community grant. However, when the campaign was completed, that number was increased to over $100,000.
Black activists have also worked tirelessly to ensure that their communities benefit from the economic benefits that cryptocurrency offers. Guapcoin (GUAP) founder and chief engineer Taviona Evans says its platform has achieved more in 2021 than the previous year. GUAP was created to help narrow the wealth gap in black communities and support black-owned businesses in the United States. She told Cointelegraph:
“We have worked to raise awareness of cryptocurrencies among a population with limited access and education in crypto and finance – and we continue to do so.”