The future of the internet is here… or not? This article discusses an aspect of the technological revolution that rings most important in this day and age: sustainability. In an era filled with chatter around climate change, is web3 the solution? Read on to know more.

To delve into this topic, it is imperative first to understand the history of the internet, and how we got here. The first inception of the web was when Tim Berners-Lee developed the first protocols, which would allow for international communication without relying on centralized infrastructure. When the internet took off, this was renamed “Web 1.0”, with most pages being static and “read-only”. In 2004, the second wave of the internet emerged, allowing user-generated content to be posted, a true “read-write” model, and here we are. That was quick.

And then comes, web3. The very justification for its existence is the fact that it is decentralized. Now, why is this important? The general assumption is to avoid government censorship or to promote liberalist views, but this is not the case.

Decentralization matters, in this day and age, because of the inordinate power balance between a select few large companies, which make all the decisions in the market. For entrepreneurs, this means that they face tyrannical competition when they set out, due to these large-scale monopolies. For consumers, there is a large component of trust that comes into play here, with users entrusting these entities with all sorts of information, without knowing if their data is being misused. A decentralized system negates this, allowing all users to have the same power irrespective of what or who they are, inspiring entrepreneurs and leaders around the world to put forth their ideas, without fear of being tossed out of business by Google or Facebook.

And that is where the idea of a “read-write-own” system was born.

This article will not delve further into the fundamentals of web3 systems, but you can use this to know more.

Now, coming to the topic at hand. What happens when you combine the two buzzwords “sustainability” and “web3”? The result is… quite bleak, at least for now. The main reason for this is a consensus mechanism, a core idea in the operation of the blockchain. Essentially, it is a form of validating that developers/miners do not misbehave, by forcing them to put some amount of capital at risk.

The problem lies in the fact that most cryptocurrencies, including Bitcoin, use an algorithm called proof of work (PoW). This is an extremely energy-intensive process and bases the entire consensus on the fact that the miner is willing to spend these massive amounts of energy to mine the coin. Here, miners need to “guess” random computational codes, by running through them until a final solution is hit, utilizing mass computational power in the process. And this isn’t even the worst part. To date, the consumer base of these technologies is still very small, and it already takes up 0.55% of global energy production. This seems like a pretty major roadblock, especially considering claims of the world transitioning into one where these procedures are commonplace.

However, not all hope is lost.

Proof of Stake (PoS), an alternative method, has been developed, with Ethereum (another cryptocurrency) already adopting it. Instead of utilizing energy, PoS requires validators to deposit some amount of currency, which can be destroyed if any suspicious behavior is detected. The higher amount a person is willing to put on the line, the higher their chances of being picked as a validator. Unfortunately, this comes at the cost of being truly decentralized, as it allows for people/companies with large pockets to emerge dominant, effectively ruling out others from getting involved. The debate, however, doesn’t end here. Currently, various blockchain technologies are striving towards a more refined version of PoS, one where the drawbacks are not as prominent. Also, while the mainstream focus remains on these two algorithms, there are many other experimental ones, which could be the solution we are looking for. Thus, the answer lies in a future that may not be very far ahead.

It doesn’t end here. While these algorithms are certainly crucial, there are aspects of the blockchain which are not discussed as frequently, ones that may have a significant impact on the final verdict.

The field of regenerative finance has blossomed since the birth of web3. It plans to use monetary means to regenerate ecosystems and communities. Web3 has given it the power to design and implement climate-change projects from a community level, alleviating reliance on centralized actors. The World Economic Forum has formed a new initiative - the Crypto Sustainability Coalition, whose sole purpose is to further the progress of these projects. As we speak, there are hundreds of activists and developers striving for a better future, from incentivising eco-friendly agriculture to punishing companies. This article highlights one such project.

The carbon credit system is not new. Essentially, it is a way for companies/individuals to buy a tonne of carbon, that is prevented from entering the atmosphere, to offset their production. In a world where climate change is a buzzword, surely this is a booming market, now more than ever. Sadly, you are mistaken. There are countless problems in the current carbon market, with companies buying “low quality” carbon credits, which have very little impact on the environment. The market is illiquid, and “double-counting” is a frequent occurrence, with multiple companies claiming to have bought the same credit.

Enter crypto.

Companies like Flowcarbon are attempting to solve the aforementioned problems, in an attempt to revolutionize the system. By introducing the blockchain, companies have access to a highly liquid and transparent market, where every currency has data tied to it which can attest to the quality of the carbon credit. In principle, this seems like a great idea. However, its functioning remains unrefined and is an example of how we are still in the experimental stages of these processes.

Web3’s praises seem to be incessant, coming from individuals whose ideas seem absurd in society - most of them at least. However, as we have explored in this article, there seems to be a light at the end of the tunnel after all, even if its current state isn’t doing the world much good. 

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