Blockchain technology is best known for its crucial role in supporting bitcoin, the world’s most popular cryptocurrency. In fact, the bitcoin system was what the blockchain was originally built for. But over the years, leaders in many different industries have realized that the potential for this technology extends far beyond the scope of digital currency.
Today, blockchain solutions have begun to appear in security-focused industries like healthcare and finance. The distributed ledger system of the blockchain makes it much harder to tamper with and supports secure transactions. Security and privacy are key for organizations that handle customers’ sensitive information and financial assets.
Now that the potential uses for blockchain technology have expanded, we’re seeing even more opportunities. One of the more unexpected uses for the blockchain is environmental conservation, specifically in fighting ocean pollution. But can distributed ledger technology help to clean up our oceans? One innovative startup is proving that it can.
Just How Bad is the Ocean Pollution Situation?
Our oceans are crucial to the world’s ecosystems. We depend on them for food, transportation, and many, many other facets of daily life. Unfortunately, billions of pounds of trash is introduced into the world’s oceans every year, disrupting their own delicate ecosystems. Pollutants, debris, and oil spills all harm marine life and compromise water quality.
Pollution is a persistent problem in oceans and can encompass everything from fertilizer runoff to large debris to microplastics. In the ocean, garbage patches often form. These are large collections of debris from human activity that can appear as islands from a distance. It’s clear that ocean pollution is an ongoing problem that requires urgent attention.
How a Startup Used Blockchain to Monetize Plastic
The world of technology is beginning to harness data and digital solutions for social and environmental good. One innovative startup is using blockchain technology to tackle two major problems at once: plastic pollution in the ocean and poverty in developing countries. The basic idea of Plastic Bank would be to compensate people for collecting and turning in plastic waste that would otherwise pollute our oceans.
While the idea itself is simple enough, implementation required some advanced tech solutions. Many people who live in poverty around the world do not have access to safe and secure banking options, making it difficult to provide compensation for the plastic collected.
Using blockchain and cloud solutions, the startup tracks the plastic people turn in and provides them with digital rewards via mobile phone. This gives them security and allows them to track and redeem their stored value easily. The distributed ledger blockchain system is known for its security and can help people feel secure in collecting plastic for Plastic Bank.
What’s Plastic Bank’s Strategy?
Plastic Bank’s model is solid: it allows people living in impoverished areas to collect plastic trash that would ultimately end up in the ocean. They can then turn that plastic in at a recycling center and earn currency in digital wallets. Plastic Bank then sells the recycled plastic to be made into consumer products. Because the plastic is collected from trash, manufacturers can sell their products at a premium, meaning that Plastic Bank can sell the recycled plastic at a higher price and provide compensation at above-market rates for collectors.
For people living in poverty, Plastic Bank has the potential to provide them with a higher standard of living. Collecting trash won’t make people rich, but it could provide enough income to allow families to open up bank accounts, further their education, or open up other opportunities. It’s a win-win model that has already shown a lot of promise.
Will Plastic Bank’s Business Model
Plastic Bank might be the first company to think of using blockchain technology to reduce ocean pollution, but it probably won’t be the only organization working in this space in the near future. Since the model has shown promise, larger companies might also get involved with the movement in some way, including incorporating more recycled plastics into their product lines.
One of the biggest issues that the startup might run into is scalability. For Plastic Bank to be successful long-term and really tackle the program on a large scale, it needs to have enough recycling centers and buyers to continue the cycle. They will also need to properly leverage and manage organizational data to manage risk and improve growth.
With that said, Plastic Bank seems to be on a solid foundation. It’s providing a solution that helps people improve their lives while simultaneously helping to make our planet healthier and safer. Hopefully, we’ll be seeing those benefits continue for a long time to come.
