The blockchain–sustainability nexus: can this new technology enhance social, environmental and economic sustainability?

Abstract

With the rise and fall of the prominence of Bitcoin, blockchain technology, which provides public online ledgers used for the verification and recording of transactions, has started to become the center of attention for diverse parties in the global financial system. This chapter explores the nature of blockchain and discusses how it may contribute to, or obstruct, sustainability. To this end, first, blockchain technology is introduced. Next, a short discussion on sustainability is presented, including how it is defined, measured, reported, and understood in theoretical frameworks. After that, the 2015 United Nations Sustainable Development Goals are briefly explained. This is followed by a systematic literature review, which highlights the scarcity of literature linking blockchain to sustainability. Finally, the author offers her own reflections on the potential of blockchain to revolutionize the financial services industry and weighs up the pros and cons vis-a-vis sustainable development.