Chapter 08 · Finance, data & evidenceData, Technology & Verification Systems
Blockchain
Definition
A type of distributed ledger in which records are grouped into cryptographically linked blocks and shared across a network, making entries tamper-evident without a central administrator. In sustainability contexts, blockchain is applied to create immutable records for supply-chain traceability, carbon-credit issuance and tracking, and renewable-energy certificate systems.
References
Supports definition and framing.
Overview
What it means
The sustainability case for blockchain is trust and provenance: documenting sustainably sourced materials across multi-tier supply chains, tracking carbon credits to prevent double counting, and logging soil-carbon or regenerative-practice data in agricultural procurement.
The countervailing issue is the technology's own footprint: energy-intensive proof-of-work consensus drew heavy criticism, mitigated by the shift of major networks to proof-of-stake and renewable-powered operations. A ledger records data faithfully but cannot verify that the data entered was true — "garbage in, garbage out" applies.
How it is used
Pilots and production systems span fashion and food traceability, blockchain-based carbon registries, and tokenised environmental assets; interoperability initiatives aim to reduce fragmentation between platforms. Due-diligence and digital-product-passport architectures evaluate blockchain against conventional databases case by case.
Why it matters
Blockchain tests a standing question in verification systems: when does distributed, immutable recording add real assurance value, and when is it a costly substitute for conventional registries? The answer shapes digital MRV infrastructure.