Thursday, March 15, 2018

Questionable Blockchain Climate Solution wins MIT prize

MIT's Climate CoLab has issued prizes for climate solutions, and the top of their prizewinning solutions list is uses Blockchain.

Blockchain was originally devised as, in effect, an accounting system for digital cryptocurrency, Bitcoin. I've written about the cryptocurrency Bitcoin before. One pundit calls it "litigation futures." I'm certainly not a fan.

Cryptocurrencies are climate-counterproductive because they are a commodity-based currency. Instead of a lump of gold, the currency embodies the energy to make the encryption. Bitcoin "miners" are contributing CO2 to the atmosphere as we speak. (In fairness some such currencies pledge to use only renewables.)

The Blockchain promoters call it "incorruptable" because it's a database with distributed data--any hacker would have to bring down many more than one computer to corrupt it. The decentralized  presence of blockchain nodes (i.e. computers with the database) theoretically could be powered by renewables, but we're certainly not there yet.

The open source blockchain ("Ethereum") is "in its early stages." The internet article I found promoting Blockchain (with endorsements from the likes of Larry Summers!) also says "With companies like Uber and AirBnB flourishing, the sharing economy is already a proven success."

...Already you can spot the B.S. Uber has never made money, much less "flourished"... It's a dot com enterprise trying to improve on the model of the taxi, with decidedly mixed results.

However, it's difficult to fault a distributed accounting system itself as the stalking horse for fraud, but the stock market is already taking some of the early Blockchain offerings down.

In any case, it's worth remembering that techno-optimism does not guarantee attempts to reinflate the dot com bubble come from straight shooters. And yes, scientists are not above being fooled, even if they go to MIT.

What really should occupy our attention in climate solutions? That's covered in the previous article.

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