Ethical Issues in Blockchain Technology

BLOCKCHAIN TECHNOLOGY
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Blockchain Technology
Blockchain technology is one of the newest and emerging technologies that is distributed and decentralized. It is, in most cases, public and digital ledger records transactions in several computers, such that ensures that the records that are involved are not altered or deleted without the subsequent blocks being altered or deleted. Blockchain technology was discovered and developed for the purpose of Bitcoin currency, which is an electronic payment system. It is important to note that Blockchain is implemented and incorporated in organizations and firms in order to manage and provide security for their transactions in the internet (Rayome, 2019). Blockchain technology is a democratized and decentralized system, where information can be accessed and seen by everyone. Blockchain technology is significant because the origin of any ledger posted can be traced to the source. Also, the technology provides verification of ledgers without the requirement of approval from other parties. Nevertheless, there are several ethical issues that are related with this new technology. These ethical issues are going to be discussed below.
Ethical Issues Related With Blockchain Technology
The Blockchain technology will eliminate intermediaries in various firms and organizations. For example in financial institutions, Blockchain technology will eliminate the need for banking networks and banks. In business environment, the technology eliminates the need for distributors who connect retailers to the manufacturers and suppliers. In health care institutions there are clearinghouses and health information exchanges to provide facilities required in the health care facilities. Therefore, Blockchain technology has completely eliminated the functions of intermediaries in various industries because of decentralization of the systems. The intermediaries have been exploiting their clients by overcharging them and also delaying their services. It is therefore evident to that many people will lose their jobs because of elimination of the intermediaries in the industries. However, for the intermediaries to thrive in the market, they will have to evolve and adapt to Blockchain technology to continue providing their services.
Blockchain technologies have had environmental impacts in society. For the Blockchain technology to run, it requires large amounts of energy especially electric power. This is because Blockchain is involved in massive mining of large amounts of hardware. For example, it has been found out that Blockchain has 390,000 Bitcoin transactions per day and each transaction consumes 470 kilowatt-hours. This is a lot of energy consumed, which actually amounts to the energy used by an American home for two weeks. It is also important to note that for every kilowatt-hour consumed, 223,250 grammes of carbon (IV) oxide is released to the atmosphere (Lexology, 2020). This may require a lot of energy and may lead to pollution of the environment. Also, Blockchain technology did not exist in the past and therefore they need to create and build their offices. This leads to clearing of bushes and forests leading to deforestation hence destroying the environment (Kinjap, n.d).
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