While the world debates the ethics of cryptocurrencies, these projects have changed the world for the better in 2021.
Analysis
It seems that the potential benefits of cryptocurrencies are often overshadowed by the technology’s inherent vulnerability to exploitation.
And it’s true, crypto adoption comes with risks. Over the past year, governments around the world have raised concerns that cryptocurrencies could be used to fund terrorism or other illegal activities such as money laundering. There have been bans everywhere from China to Nigeria, with many crypto exchanges forced into a legislative hurdle.
While cryptocurrency has its challenges, it has also become a tool for policymakers and activists who want to make the world a better place.
Climate crisis
Throughout 2021, public scrutiny of Bitcoin (BTC) energy-intensive mining practices has dominated headlines throughout the year — and for good reason. According to Digiconomist, Bitcoin mining consumes a similar amount of energy to an entire country as small as the Netherlands or the Philippines.
However, many environmental activists have been using similar technology as a tool in the fight against climate change. For example, smart contracts have enabled charities to raise funds in a way never seen before.
Many of these “charity tokens” have a tax system that charges a fee for every transaction, which can then be transferred to a charity of your choice. For example, the Entire world of Waves (WOW) token is on a mission to restore the planet’s oceans and fight climate change.
In 2020, the world’s oceans may have stored 1 trillion joules more of thermal energy than in 2019. Warmer water contributes to sea ice melting. The seas may have absorbed enough heat last year to boil 1.3 billion kettles of water. Buying $ WOW & support climate conservation efforts. pic.twitter.com/4ehOOc2iq0
– Planet of Waves (Official) (@Globe_Of_Waves) November 13, 2021
The project has an 11% transaction tax redistributed to all holders, 3.3% to the liquidity pool, and 4.4% to the WOW charity wallet. As the charity grows, the fund is set aside monthly to donate to nature conservation and wildlife conservation activities. According to the project’s Twitter page, more than $49,000 has been raised donate. WOW CEO Kristijan Tot told Cointelegraph:
“It’s all about making a positive impact on causes around the world while also attracting the attention of NGOs and creators.”
In this way, charitable giving is incorporated into the underlying algorithm of the token. Not only that, the owners are also encouraged to invest and stay invested in the project.
WOW is not the only crypto project using this type of technology to raise funds for the environment.
Solarcoin distributes tokens as a reward to people who install solar power systems in their homes or businesses. The theory is that when the price of the coin exceeds the cost of producing energy, solar energy will effectively become free. The project’s internet page states:
“As of today, cryptocurrency is worth more than 2 trillion US dollars. Much of that value is distributed in exchange for mining the carbon-intensive cryptocurrency. What if it was given to free energy producers? ”
Black lives are worth it too
Of course, preserving the environment is not the only issue that crypto projects have tried to solve over the past year. In June, the world watched in outrage as George Floyd was murdered by a police officer. His death has given new impetus to the Black Life Subject movement – and there is no shortage of controversy in the crypto community.
As previously reported by Cointelegraph, a group has been trying to cash in on the turmoil by issuing the George Floyd token, a project rife with anomalies and an opaque payment system. It was also reported that one person attending the rally held a sign that declared “Bitcoin will save us.”
Despite the obvious bad taste of these isolated cases, the broad community has largely gathered for the cause. For example, Supplying Block introduced a solution for their users to specifically donate to nonprofits that support the Black Lives Make any difference movement such as the Chicago Community Bond Fund, the Black Movement and the Release Project.
Back in 2020, the crypto fundraising platform partnered with Gitcoin to launch the #CryptoForBlackLives campaign. Initially, Gitcoin matched donations up to $25,000 through a crowdfunding. However, that number was increased to more than $100,000 when the campaign was completed.
Black activists have also worked tirelessly to ensure their communities can benefit from the monetary gains that cryptocurrencies bring. Guapcoin (GUAP) founder and lead engineer Taviona Evans says that her platform could achieve more in 2021 than in any previous year. GUAP was created to help close the wealth gap in Black communities and to support Black-owned businesses in the United States. She told Cointelegraph:
“We have raised crypto awareness among populations with limited access to and education about crypto and finance – and we continue to do so.”
Improve health care
Another area of philanthropy where crypto projects have made a difference this year is healthcare and mental health. In 2021, the health of many people around the world will be severely impacted as the COVID-19 pandemic continues to spread.
Perhaps one of the more unexpected outcomes of the coronavirus is its profound effect on cryptocurrencies and blockchain, which can be traced back to the origins of the pandemic in late 2019.
From Australia to Mexico, blockchain technology has been used to verify the authenticity of COVID-19 test results and vaccination certificates.
A number of crypto funds and tokens have also popped up to support communities around the world that have suffered from the virus outbreak. In April of this year, Polygon co-founder Sandeep Nailwal created the COVID Crypto Relief Fund as a powerful second wave of this virus tearing through his native India.
The fund was able to raise a whopping $429.59 million in mid-October, with Ethereum founder Vitalik Buterin, Australian cricketer Brett Lee and Coinbase chief technology officer Balaji Srinivasan among those. Contributors.
#India @CryptoRelief_ @VitalikButerin @RyoshiResearch
The #India #Covid #Crypto Relief funds have been used! This is good news for everyone! For those who support the donation, and those who are against it!
What do you think #ShibArmy? https://t.co/dbxNx84bVF pic.twitter.com/fe7w5swdge– SHIB INFORMATION (@ShibInformer) September 26, 2021
Is Cryptocurrency a Driver for Good or Bad Society?
If there is ever a year to prove that cryptocurrencies are truly ethically agnostic, it is 2021. Around the world, the same technology used to finance terrorism is also being used. used to fund healthcare amid the COVID-19 pandemic. While the world argues about the impact of energy-intensive BTC mining projects on the environment, others have created cryptocurrency and token projects to save our planet.
As we move into 2022, whether crypto is a good or bad move remains in the eyes of the holder.