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September 2019 (published: 26.09.2019)
Number 3(38)
Home > Issue > Environmental assessment of cryptocurrency for sustainable development
of digital economy
Pavlova A.S. , Daniliuk M.A. , Sergienko O.I., Pavlov A.S.
The rapid growth of cryptocurrency in the global market and national program of Russian Federation «Digital economy» drew attention to the environmental aspects of its production. This process is based on the use of significant computing power, which consumes a large amount of electricity. In most cases, traditional non-renewable energy sources are used, which leads to the depletion of natural resources. As methodology of environmental aspects analysis, the consequence/probability matrix was chosen. The following environmental aspects of cryptocurrency were identified and ranked: energy consumption for mining, computer using for mining, energy consumption for cooling of the computers, critical raw materials consumption for computer production, hazardous electronic waste generation from computer using in the end of life cycle. One of the most significant environmental aspects is energy consumption. As a result of the study, it was concluded that using of traditional energy sources for blockchain technology, the digital economy will be formed contrary to the interests of sustainable development and the principles of a low-carbon economy. In order to implement the national program “Digital Economy of the Russian Federation”, the transition to renewable energy will provide a breakthrough in the transformation of the existing economic model into digital without significant impact to the environment.
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Keywords: sustainable development, digital economy, blockchain technology, cryptocurrency, environmental aspect, green cryptocurrency, alternative energy.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
UDC 65.011.8
Environmental assessment of cryptocurrency for sustainable development
of digital economy
The rapid growth of cryptocurrency in the global market and national program of Russian Federation «Digital economy» drew attention to the environmental aspects of its production. This process is based on the use of significant computing power, which consumes a large amount of electricity. In most cases, traditional non-renewable energy sources are used, which leads to the depletion of natural resources. As methodology of environmental aspects analysis, the consequence/probability matrix was chosen. The following environmental aspects of cryptocurrency were identified and ranked: energy consumption for mining, computer using for mining, energy consumption for cooling of the computers, critical raw materials consumption for computer production, hazardous electronic waste generation from computer using in the end of life cycle. One of the most significant environmental aspects is energy consumption. As a result of the study, it was concluded that using of traditional energy sources for blockchain technology, the digital economy will be formed contrary to the interests of sustainable development and the principles of a low-carbon economy. In order to implement the national program “Digital Economy of the Russian Federation”, the transition to renewable energy will provide a breakthrough in the transformation of the existing economic model into digital without significant impact to the environment.
Read the full article
Keywords: sustainable development, digital economy, blockchain technology, cryptocurrency, environmental aspect, green cryptocurrency, alternative energy.
DOI 10.17586/2310-1172-2019-12-3-118-127