Blockchain and Cryptocurrencies: an analysis through Sustainability and the Environmental Impact

Abstract

The aim of this thesis is to analyse the world of cryptocurrencies, which are becoming ever more central in the international arena, and the impact they have on the environment. The paper will begin with an introduction of Industry 4.0 and a following analysis and explanation of the functioning of the blockchain system, highlighting the areas of application of cryptocurrencies in society. Afterwards, an historical analysis of the evolution of money will be presented, starting from barter and ending with fiat money. The same exposition will be carried out with regard to cryptocurrencies. An analysis regarding the advantages and disadvantages of both systems will also be developed. Afterwards, the topic will shift to sustainability. In this regard, the third and fourth chapters will focus on the circular economy, with an explanation of what the latter is about. Following this, the consequences that cryptocurrencies have on the environment will be presented, as well as the sustainable innovations that society and governments promise to implement as a solution to these.