Sustainability and Green Blockchain: A Holistic
Approach Towards Energy-Efficient and
Eco-Friendly Distributed Ledger Technologies”
*
Note: Sub-titles are not captured in Xplore and should not be used
SHUBHAM KUMAR
Department of CSE Chandigarh University Mohali ,India 22BCS10082@cuchd.in
Abstract—In recent years, blockchain technology has seen
significant growth and widespread adoption in various industries.
However, one major drawback of blockchain investments is their
substantial energy consumption, which has negative impacts
on both the economy and the environment. The main cause
of concern is the generation of atmospheric carbon emissions
resulting from excessive energy usage. This research study aims
to identify blockchain networks and systems that assert them-
selves as environmentally friendly and determine which of them
produces the least amount of carbon emissions, such as Cardano,
Tezos, and Bitgreen. Our study has identified 23 blockchain
networks that consume significantly less power and release fewer
carbon dioxide emissions compared to the Bitcoin network. Some
of these environmentally friendly networks include Algorand,
Fantom, MobileCoin, and Electroneum. Additionally, we have
found various projects and organizations that support greener
blockchain initiatives, such as the Renewable Energy Certificate
Mechanism, Green Digital Finance Alliance, GreenTrust, and
the Energy Web Foundation. Key findings indicate the potential
for substantial reductions in energy consumption and carbon
footprint. The proposed holistic approach not only addresses the
environmental concerns associated with blockchain but also offers
a pathway for integrating sustainability into the core design of
distributed ledger technologies.
Index Terms—Green Blockchain,sustainability,Emission of
CO2,Cryptocoin
I. INTRODUCTION
In the rapidly evolving landscape of information technology,
the intersection of blockchain and environmental sustainability
has emerged as a critical domain of inquiry. Blockchain, a
decentralized and distributed ledger technology, has gained
widespread adoption in diverse sectors, offering unprecedented
transparency, security, and efficiency. However, the surge in
blockchain applications has raised concerns regarding its sub-
stantial energy consumption and environmental impact.
As societies worldwide grapple with the challenges posed
by climate change and the depletion of natural resources,
it becomes imperative to scrutinize the ecological footprint
Identify applicable funding agency here. If none, delete this.
of emerging technologies. Blockchain, in its current form,
often relies on energy-intensive consensus mechanisms and
resource-demanding protocols, contributing to a carbon foot-
print that cannot be overlooked. In response to this urgency,
our research endeavors to assess the environmental impli-
cations of blockchain technologies and, more importantly,
proposes a holistic approach towards making them not only
energy-efficient but also inherently eco-friendly.
The objectives of this study encompass a comprehensive
analysis of the existing environmental concerns associated
with blockchain, including the examination of energy con-
sumption patterns and their ecological consequences. Building
upon these insights, we present a strategic framework that
addresses the identified challenges and promotes sustainability
in distributed ledger technologies. By emphasizing a holistic
approach, we aim to guide the development and implementa-
tion of blockchain solutions that align with the principles of
environmental responsibility.
This research is not merely a technological exploration but
an advocacy for a paradigm shift in the ethos of blockchain
development. By intertwining the advancement of technology
with a profound commitment to environmental stewardship,
we envision a future where blockchain contributes positively to
both digital innovation and the preservation of our planet’s re-
sources.Blockchain (BC) is a revolutionary technology that has
brought about significant disruptions across various industries,
including banking, finance, automotive, healthcare, and more.
Its impact is far-reaching, with estimates suggesting substantial
growth from 11.54billionin2022toaprojected162.84 billion
by 2027 (Statista, 2022). BC technology has the potential
to revolutionize global trade and transactions. However, the
process of cryptocurrency mining, which involves verifying
transactions on a BC network, requires substantial compu-
tational power and electricity consumption (Escobar et al.,
2022). Unfortunately, a significant portion of the world’s
electricity is derived from non-renewable sources such as
natural gas and coal, leading to a considerable carbon footprint
associated with BC’s energy consumption (BCI, 2023).
Between 2018 and 2022, the annual electricity consump-
tion attributed to global cryptocurrency mining experienced
substantial growth, with estimates indicating a doubling to
a quadrupling of usage. As of August 2022, published es-
timates place the total global electricity consumption for
cryptocurrencies between 120 and 240 billion kilowatt-hours
per year (WhiteHouse, 2022). This range surpasses the annual
electricity consumption of several individual countries like
Argentina or Australia. It constitutes approximately 0.4
The combined global electricity generation attributed to
cryptocurrency mining with the highest market capitalizations
leads to an approximate annual emission of 140 ± 30 million
metric tons of CO2. This accounts for approximately 0.3
The notion of green BC has garnered significant attention
in recent years, driven by apprehensions about the environ-
mental consequences associated with cryptocurrency mining
and BC-based systems. Green BC entails the utilization of
BC technology in an environmentally sustainable manner,
prioritizing the reduction of carbon emissions and energy
consumption (Oudani et al., 2023). In recent times, there has
been a surge in the establishment of green BC initiatives.
These initiatives operate within the broader BC ecosystem,
which encompasses a comprehensive network of technologies,
companies, organizations, and individuals engaged in the de-
velopment, deployment, and utilization of BC-based solutions.
The BC ecosystem represents a collaborative environment
where various stakeholders work together to advance the
adoption and application of BC technology in diverse sectors
(Qian et al., 2022). Green BC initiative’s goal is to advocate for
the adoption of sustainable energy alternatives and to minimize
the adverse effects associated with cryptocurrency mining and
BC operations (Varavallo et al., 2022).
According to the previous studies, there are not enough
categorizations in the literature, to address the question of how
BC might promote sustainability (e.g. (Massaro et al., 2020;
Calandra et al., 2023),). In (Massaro et al., 2020), the study’s
findings strongly emphasize sustainable production, efficient
energy management, and climate change. The primary use of
BC concerning sustainability is to lower supply chain costs
(Calandra et al., 2023). Similarly, (Parmentola et al., 2022)
conducted a systematic literature review to look into how BC
technology is thought to be able to influence sustainability.
Their findings showed that BC technology may promote
environmental sustainability by enhancing energy efficiency,
encouraging the development of safe and dependable smart
cities, and aiding the realization of a sustainable supply chain
(Parmentola et al., 2022). Accordingly, this study aims to
conduct an analysis and provide a summary of these initiatives,
examining their efforts to promote the use of renewable energy
sources and mitigate the environmental impact associated with
BC technology. This study answers the following research
questions.
II. BACKGROUND CONCEPT
Blockchain technologies have been proposed lately as a
solution to a lot of operational concerns of the supply chain,
which could enhance the creation of economically, environ-
mentally, and socially sustainable systems. Sustainability is
one of the major concerns of various sectors nowadays, such
as the agri-food and pharmaceutical. The theoretical approach
of blockchain technology in the agri-food and pharmaceutical
sectors will be researched in order to determine the potential
use of blockchain technology in these sectors. In order to
approach the sustainable aspect of the implementation of such
tools, it is also necessary to look into the relationship between
blockchain and the enhancement of sustainable systems, as
described in the literature.
A. Cryptocurrency minning
In a BC network, miners are users who add new blocks to
the chain. To link a new block to the BC, miners must solve
a mathematical puzzle (Alzoubi et al., 2021). This process,
known as mining, requires powerful computing and consumes
a lot of energy. Miners compete to solve the puzzle, and the
first one to find a solution can add the next block. Validation in
BC is based on consensus, where everyone in the network has
the same information and accepts it as accurate (Gail, 2022).
Due to the high computational requirements, cryptocurrency
mining consumes significant energy and emits a big amount of
CO2 (Iberdrola, 2023). Consensus mechanisms play a critical
role in powering the mining and validation of cryptocurrencies
in distributed ledger technology systems. One of the most well-
known consensus mechanisms used in BC networks is Proof
of Work (PoW), which is employed by Bitcoin and the initial
version of Ethereum (Alzoubi et al., 2022c) to conduct the
mining process (Alzoubi and Aljaafreh, 2023).
III. BLOCKCHAIN IN THE AGRI-FOOD SECTOR
The field of agricultural supply chain management seems to
be benefiting greatly from the use of blockchain technology in
addressing issues and enhancing many parts of supply chains.
Information and communication technology (ICT) systems
have been widely used in cold chain management, but their
susceptibility to hacking has presented difficulties. Due to
its decentralized and trustworthy network, which improves
security and information integration among chain participants,
blockchain technology is viewed as a solution. Blockchain
may enhance traceability and monitoring of product tempera-
tures in cold chains, maintaining product quality and customer
health. This is done by connecting smart contracts with IoT
sensors.In order to improve transparency and traceability in the
food supply chain and solve problems like contamination and
a lack of responsibility, blockchain technology is regarded as
being essential. Blockchain aims to minimize labour and main-
tain traceability, which saves expenses and food waste while
replacing expensive and time-consuming traditional techniques
for protecting the food supply chain [14]. Blockchain can also
help all stakeholders engaged in the supply chain and deliver
operational advantages across several industries. Cost savings,
higher standards of quality, risk mitigation, and sustainability
are all in line with its main goals. The field of scientific study
on blockchain technologies for the agri-food sector is continu-
ously changing. To maintain supply chain traceability, studies
have concentrated on permissioned blockchain systems and
several Distributed Ledger Technologies (DLTs). Scalability
issues continue to be a problem, and there are currently just a
few experiments or pilot projects using blockchain technology
to assure production conditions. Overall, the use of blockchain
technology seems to significantly enhance supply chain opera-
tions in fields including food traceability, and agri-food supply
chain management, as it improves traceability, security, and
transparency, lowers costs and risks, and encourages supply
chain sustainability.
IV. BLOCKCHAIN IN THE PHARMACEUTICAL SECTOR
The blockchain technology has the potential to improve
the security and traceability of the medicine supply chain,
according to the US Food and medicine Administration (FDA)
[15]. With the help of Frank Yiannas, a specialist in traceabil-
ity technologies, the FDA launched a pilot study in 2019 to
investigate how to use blockchain technology to strengthen the
US food supply [11]. By monitoring operations, identifying
responsible parties, and enabling real-time access to infor-
mation regarding product quality, blockchain technology can
offer benefits in automating and controlling pharmaceutical
cold chains. By continually monitoring product temperatures,
it also makes data integration easier and guarantees resource
efficiency. As a component of the healthcare supply chain,
the pharmaceutical cold chain encompasses several parties
and presents issues with temperature control, the depend-
ability of the infrastructure, and a variety of approaches.
IoT, RFID, and wireless sensor networks are just a few
examples of the technologies that have been used to improve
coordination and communication inside the cold chain [16].
Improving electronic health records and addressing difficul-
ties with counterfeit goods are all addressed by integrating
blockchain technology into the cold chain. The tracing features
of blockchain are essential for assuring medication security
and fostering confidence. Blockchain technology can help
waste management in the pharmaceutical business by ensuring
data privacy, compliance, cost effectiveness, and speed in
trash collection and disposal. Papers have been replaced with
electronic medical records.
A. . Integration of Sustainability Pillars in Blockchain Imple-
mentation
In order to develop sustainable operations in supply chains
across multiple industries, blockchain technology seems to
provide a number of advantages. Blockchain enables the
tracking of sustainability performances, supplier development,
and the elimination of intermediaries in terms of vendor
selection and supplier development. Additionally, it aids in the
monitoring of environmental effects brought on by upstream
suppliers, improving vendor selection and fostering a healthier
environment [17]. Blockchain makes service operations on
trucks during the COVID-19 outbreak easier while promoting
trust and openness [18]. Blockchain aids the adoption of
sustainable logistics and checks sustainability performance in
transportation. It also enables green marketing through trace-
able packaging [19]. Blockchain in reverse logistics enables
the tracking of materials’ whereabouts and the verification
of recyclers’ activities, improving closedloop supply chain
management and encouraging sustainability. Smart contracts
play a significant role in humanitarian relief by facilitating
quicker, more transparent, and more affordable transactions,
doing away with middlemen, and reducing corruption [20].
Blockchain also contributes to the fight against illicit fishing
by assuring traceability and blocking the selling of goods that
were obtained unlawfully. Through crowdsourcing responsibil-
ity, it may impose labor and environmental norms around the
globe, bringing about social advantages. By creating transpar-
ent relationships between parties, blockchain solves problems
like food adulteration, food safety, and quality management in
the context of supply chain sustainability and the circular econ-
omy. It promotes recycling, decreases waste, and improves
product return management in reverse supply chains. Imple-
menting blockchain along with big data improves agricultural
processes, such as tracking soil nutrients, managing irrigation,
and maintaining quality. It also improves the environmental
effects of transportation while lowering carbon emissions
[21]. Blockchain, when combined with IoT and crowdsourc-
ing platforms, enhances information management systems,
supply chain security, and provides consensus methods to
increase supply chain agility and resilience. Enhancing supply
chain data storage, transparency, protection, and dependability
through blockchain integration with IoT and RFID. Especially
in the face of disruptions brought on by events like natural
disasters and viral outbreaks, the adoption of digital platforms
powered by blockchain, IoT, and cloud computing plays a
crucial role in supply chain risk management and resilience
strategies. Examining at many organizational levels as well
as taking cultural aspects, norms, and industrial environment
into account is necessary for the implementation of blockchain
in sustainable and ethical supply chains. Adoption roadblocks
including issues with data ownership, privacy worries, and
IT integration must be resolved. The study of closed-loop
supply chains, the circular economy, and reverse logistics is
expanding, with blockchain and IoT advancing “product return
management” and best practices. Long-term advantages come
from “Physical Internet” and green manufacturing, and the
combination of complementary technologies with blockchain
improves the efficacy of blockchain applications in supply
chains, promoting social, environmental, and economic sus-
tainability [17]. The implementation of blockchain technology
seems to be a catalyst to the creation of more sustainable
supply chain systems. In order to establish these arguments,
we are investigating real-life implementation examples of such
technologies in the sectors mentioned above, detecting the
concerns arising during the implementation process and exam-
ining the impact of their use on the supply chain management,
in terms of sustainability.
 V. METHODOLOGY
• Our primary aim is to detect the most widespread
blockchain applications in the agri-food and pharmaceu-
tical industries and the assessment of their adoption con-
cerning their economic, environmental and social impact.
For this reason, we conducted the following searches in
Scopus Database:
“BLOCKCHAIN” AND “AGRI-FOOD”
“BLOCKCHAIN” AND “PHARMA”
“BLOCKCHAIN” AND “APPLICATION” AND/OR
“AGRI-FOOD”
“BLOCKCHAIN” AND “APPLICATION” AND/OR
“PHARMA”
• The results of this search included both theoretical and
case studies concerning the implementation of blockchain
in these sectors. Excluding the theoretical reviews, we
observed that the available literature on the real-life
applications of blockchain is very restricted. Research
articles may gain insight from using grey literature as a
valuable resource. Grey literature is used for a variety of
reasons [22, 23]. Studies having null or negative results
that may not otherwise be communicated might give
data not available in commercially published literature
through grey literature, which serves as an essential
venue. Additionally, including grey literature might lessen
publication bias, improve the thoroughness and timeliness
of reviews, and promote a balanced assessment of the
information that is already available. Finally, grey lit-
erature can document unpublished research as well as
discoveries in specialized or developing fields of study.
Grey literature may also be a great source of unprocessed
data. Grey literature can be challenging to look for and
find, and it may be a major obstacle to conducting a
thorough search for data. However, a systematic review
may benefit greatly from a well-planned grey literature
search technique. For these reasons, we searched the
grey literature in order to collect data on the level of
implementation of these technologies in the industry, as
well as the assessment of their economic, environmental
and social impacts.
A. The need for green BC
In response to concerns about the environmental impact
of traditional digital currencies, efforts have been made to
create alternative models that prioritize low environmen-
tal effects. These alternative cryptocurrencies are often
referred to as “green cryptocurrencies.” Green cryptocur-
rencies aim to reduce the carbon footprint associated with
the mining and validation processes of digital currencies
(White-Case, 2022). These techniques should optimize
performance, reduce energy consumption, and address
environmental concerns. The future of the BC industry is
increasingly influenced by sustainability considerations.
The ongoing research and innovation in the industry aim
to create more sustainable and efficient cryptographic
solutions, which will contribute to the growth and adop-
tion of BC-based cryptocurrencies while aligning with
environmental goals (Casper, 2023). The growing energy
consumption of cryptocurrencies has attracted significant
media attention, particularly following Tesla CEO Elon
Musk’s announcement in May 2021. Musk announced
that Tesla will stop accepting Bitcoin as payment owing
to issues with the environment related to its energy
use. This decision brought further awareness to the is-
sue and sparked discussions about the sustainability of
cryptocurrencies (Iberdrola, 2023). Additionally, research
conducted by institutions such as the Judge Business
School at Cambridge University has also confirmed
the increasing energy consumption of cryptocurrencies.
These studies have provided empirical evidence and data
to support the concerns raised regarding the environmen-
tal impact of cryptocurrencies, further contributing to the
ongoing dialogue surrounding their sustainability.
1) Traditional BC networks, particularly those built on
the PoW algorithm, have come under fire for their exces-
sive energy usage and CO2 emissions. Alternatives that
are in line with the increasing concern for environmental
sustainability are provided by green BC initiatives.:
2) Governments and regulatory bodies may impose
stricter environmental regulations on BC networks. By
being aware of and supporting green BC initiatives,
businesses and individuals can stay ahead of potential
regulatory changes.:
3) Eco-friendly BC solutions and research into energy-
efficient consensus algorithms are driven by green BC
efforts. The BC industry as a whole may experience more
acceptance and improved productivity as a result of these
advancements.:
VI. GREEN BC CRYPTOCURRENCIES
This section provides a response to RQ1. Various green
BC cryptocurrencies have been proposed as alternatives
to PoW-based systems. These cryptocurrencies are de-
signed to reduce the environmental impact associated
with traditional PoW systems. They strive to be more
sustainable and inflict less damage on the planet. Notably,
these green BC cryptocurrencies appear to be highly
efficient when it comes to their energy requirements,
making them more environmentally friendly compared to
PoW-based cryptocurrencies. This section discusses these
solutions. The 23 green BC are included in Table 2 along
with a comparison of each BC’s possible advantages and
disadvantages.
VII. GREEN BC SUPPORT INITIATIVES
This section provides a response to RQ2. Although many
green BC initiatives are still in their early stages, they
have already yielded notable outcomes and progress.
However, the impact of these projects has been relatively
limited thus far, given their nascent development status.
Nonetheless, the following highlights some significant
achievements and advancements resulting from these
endeavors. These supports can be categorized into three
major themes; renewable energy, carbon neutrality, and
energy efficient use.
VIII. LIMITATIONS AND FUTURE RESEARCH
DIRECTIONS
The findings of this study rely primarily on information
obtained from green BC websites, as well as professional
websites, blogs, and agencies in the field. However, it
is important to note that research in this area is limited
due to the early phase of expansion of the green BC
initiatives. Furthermore, it is important to note that the list
of 23 identified cryptocurrencies is not exhaustive. While
there are several more cryptocurrencies available online
that are described as green BC, the selection provided in
this paper is based on the availability of data related to
these specific cryptocurrencies. Further research is needed
to enhance our understanding and foster innovation in
this domain. It is recommended that authorities might
encourage and fund research and development initiatives
that enhance the sustainability of cryptocurrency mining.
Energy system estimations play a crucial role in predict-
ing future energy consumption, considering factors such
as service demands, available power alternatives, costs,
and technology efficiency (WhiteHouse, 2022). However,
the current estimations often fail to accurately reflect the
energy consumption of digital technologies such as BC
networks. This flaw leads to inaccurate energy forecasts
specifically for digital systems. To improve energy fore-
casting for digital systems, it is necessary to address
this modeling flaw and develop estimation techniques
that properly account for the energy consumption of
BC networks. By incorporating these factors into the
modeling process, more accurate energy projections can
be obtained, enabling better planning and management of
energy resources in the context of BC mining.
Moreover, it is essential to analyze how the currency’s
blocks are created and maintained. Understanding the
process of block creation and maintenance provides in-
sights into the energy consumption associated with the
cryptocurrency (Iberdrola, 2023). Future research may
also focus on scaling issues in green BCs to help them
handle a bigger volume of transactions while still being
energy-efficient including layer 2 solutions and sharding
methods. Additionally, the interoperability between mul-
tiple green BC networks and conventional systems may
be investigated for improvement. Especially in the supply
chain and energy industries, this will make it easier to
share and integrate data seamlessly (Mohamed et al.,
2023). Finally, governments and regulatory agencies need
to set up frameworks to control green BC technologies,
assuring compliance with environmental requirements, as
the popularity of green blockchain increases.
IX. CONCLUSIONS
BCs offer numerous advantages, including openness and
anonymity, but they also require significant financial
resources to operate effectively. In recent years, the
BC industry has witnessed various technological ad-
vancements and initiatives aimed at improving energy
efficiency. This study aimed to identify and analyze
these initiatives, examining their impact on electricity
consumption and CO2 emissions. The study identified
and discussed 23 BC platforms that make environmental
or green claims. These platforms were evaluated in terms
of their potential to reduce CO2 emissions and enhance
energy efficiency. Additionally, the study identified sev-
eral initiatives that incentivize and reward the reduction
of CO2 emissions within the BC industry. These initia-
tives include Solarcoin, the Renewable Energy Certificate
Mechanism, BFCF, the Green Digital Finance Alliance,
the Crypto Climate Accord, Clean Energy Buyers As-
sociation, ReGal 38183, Treelion, EFFORCE, Chimpzee,
DEX, Green Technology Asia, MIRIS, Tomorrow, Green-
Trust, Ecoterra, the BC Climate Institute, the Global BC
Business Council Sustainability Working Group, and the
Energy Web Foundation.
The increasing popularity of green coins and projects in
the BC industry is driven by their potential for scala-
bility and reduced CO2 costs. These initiatives prioritize
environmental sustainability and attract a significant user
base. Their advantages are likely to inspire the devel-
opment of new BC solutions that prioritize ecological
concerns and drive improvements in existing ones. The
study’s findings offer valuable insights into the ongoing
efforts to promote environmentally friendly operations in
the BC industry. The research identifies potential BC
platforms and compares their power consumption and
CO2 emissions, providing a helpful starting point for
companies planning to adopt eco-friendly BC solutions.
Additionally, the paper presents a list of organizations
that incentivize firms to reduce their CO2 emissions,
encouraging the adoption of greener BC platforms by
these entities. It serves as a valuable resource for un-
derstanding the current landscape of green BC initiatives
and advocates for further research and innovation in this
field.
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