Will Pivoting Back To Ethereum [ETH] Help In Addressing Climate Change?

  • 10/08/2021
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The Ethereum blockchain is one of the robust infrastructures ever created by humans. According to the Founder of MarkerDAO, Rune Christensen, circling back to the DeFi protocol’s reliance on the Ethereum blockchain and its native token, ETH may help in reaffirming its commitment to decentralized collateral. and subsequently, address climate change concerns.

In the latest blog post, Christensen described Ethereum as a blockchain that was built for human coordination and resilience. With dire implications of climate change being intensifying global conversation, the exec asserted that Ethereum blockchain may facilitate financial markets to coordinate on mitigation. He also went on to add that it will continue to function even during large-scale disasters.

“Finally we need to double down on our roots of decentralized collateral, in particular, solidify our fundamental commitment to and reliance on Ethereum and the ETH token. The Ethereum blockchain is built for human coordination and resilience. As the world is forced to deal with the impacts of climate change, Ethereum will enable financial markets to coordinate on mitigation, and it will continue to function even during large-scale disasters.”

MakerDAO’s Ethereum Strategy

One of the major reasons for Bitcoin’s [BTC] price tumble was due to the age-old debate of its impact on climate and the environment. Hence, the Ethereum network’s environmental efficiency after the much-anticipated transition to Proof-of-Stake [PoS] from Proof-of-Work [PoW] with the 2.0 upgrade is expected to be a gamechanger. According to the MakerDAO exec, ETH will become a sustainable contender to BTC’s present position as the market leader.

It is important to understand that, MakerDao’s users are required to deposit cryptocurrency to collateralize minting of the DAI stablecoin. Even as the protocol was built on top of the ETH blockchain and supported ETH exclusively as collateral, it later expanded to other assets such as USDC, Wrapped Bitcoin [WBTC], as well as Basic Attention Token [BAT].

However, MakerDAO’s latest collateral strategy to accumulate more Ether as collateral indicates the rising confidence of the 2.0’s aftermath. In addition, the exec also highlighted accumulating more collateral derived from ETH like LP tokens or ETH collateralized assets. Christensen also stated that holding ETH directly as protocol reserves is yet another option that Maker can adopt in a bid to “both directly support, and directly benefit from its ecosystem.”

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