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Ethical Challenges That Blockchain Poses

04 Jul 2023

Although blockchain technology significantly solves various ethical disparities, it poses some active challenges too that need to be addressed. The primary ethical challenge it poses is the environmental impact & energy consumption.

The concept of blockchain mining wherein loads of computational power are required to solve complex mathematical problems and hence ensure data encryption poses a significant risk to the environment as more & more chemicals are processed to support it.

The enormous amount of energy consumption also results in a massive increase in Carbon footprint. Hence steps need to be taken to account for environmental sustainability & reducing energy consumption. Another challenge that blockchain poses with respect to ethical considerations comes with decentralized governance.

In the case of a DAO or decentralized body that oversees administrational duties, a lack of accountability for unethical behavior can be an undermining factor. As decisions are taken collectively, it will be difficult to pinpoint a false alligator in times of administrative distress.

Over time, as technology matures, experts are claiming that these challenges will be completely eradicated. For that, we’ll have to wait & watch.

Social Implications of Web3

The third iteration of the internet is definitely causing a stir wherein every fundamental rule that fights for humanitarian justice comes into play. Let’s look at the top 5 social implications of Web3.

1. Users Control Their Own Data

In the decentralized data exchange & operations model, the user is the king. They have complete authority over the data they use and exchange and no intermediary can ever lay hands on that. In other words, there’s disintermediation of parties. The user can decide to control which part of their dealings can be seen by the public and which cannot.

2. Innovation is Democratized

There’s no longer restriction as to who can or cannot take part in building decentralized applications. Anybody can take part in processes such as data mining & benefit from the rewards of contributing to the future of the safe internet. With mining pools, users who don’t have sufficient computational power can join together to bring change.

3. Freedom Of Speech

No centralized authority or anybody for that matter can censor your account for any reason within the Web3 framework. Many experts claim that such a non-censorship means of operation can allow scammers & other dangerous organizations to become a posing threat to the digital neighbourhood. However, the concurrent problem can be solved with rules embedded in smart contracts.

This will in fact lead to more freedom of speech & expression wherein the right voices don’t get undermined and the right content doesn’t get out owing to censorship issues.

4. Financial Inclusion

If you were to take a look at the global economy, you’d find that there are several unbanked citizens who don’t have access to banks as they are located in deserted places. These sections of users & others as well have direct access to DeFi or decentralized finance applications wherein they can buy/sell goods via cryptocurrencies.

5. Decentralized Social Networks

A core aspect of social integrity looks to be solved by inherent decentralized social apps that are built on blockchain principles. Users will now possess a digital identity that’s safe to use. They can view content and share their valuable info without having to worry about malicious parties taking advantage of it. All chances for fake news and illegal scam accounts to hover in the social networking lane will be eliminated owing to the way the smart contract operates.

Hope We Shed Some Light!

Well, there goes the disclaimer. Blockchain is on the far right of ethics having only a few challenges that say it otherwise. Over time, with smart minds & visionaries contributing to the growth of technology, there will be a greater side of ethical correspondence & more players actively participating in decentralized activities.

Stay updated on the latest Web3 and blockchain trends by following IBC Media on our website and social media channels.

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About IBC Media

IBC Media is building the largest, global blockchain ecosystem initiative from India. The company has a pioneering legacy of managing partnerships and establishing grassroots efforts in the Indian market. IBC Media’s debut event — IBC 2018 was a major success which had a confluence of top-line government attendees, VCs, regulators, blockchain companies, speakers, and sponsors.

IBC 2.0, the second edition in this series is the kick-start to IBC’s massive 5-year agenda with a global focus on creating Web3 industry-ready talent across 1000 engineering colleges, building 1000 DApps, a top-line talent pool of 1 Mn developers and 10 Mn retail investors.

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