Environmental impacts of energy consumption of cryptocurrency and blockchain technologies

Today, rapidly developing technology are radically affecting economic systems and environmental dynamics. Blockchain technology and cryptocurrencies, which are an important part of this transformation, are revolutionizing financial systems while raising important questions about ecological sustainability. The impacts of cryptocurrency mining processes on energy consumption and carbon emissions make it imperative to evaluate this technology in terms of environmental sustainability. The study aims to examine the impact of blockchain transactions on environmental pollution. The main features of blockchain technology and the emergence of cryptocurrencies are discussed along with their environmental impacts such as energy consumption and carbon emissions. In particular, the energy intensity of cryptocurrency mining and the effects of this process on climate change are amphasized. In the study, panel data analysis was conducted for 51 countries using data from 2013-2021 and the impact of blockchain transactions on carbon emissions was modeled. At the same time, by squaring blockchain transactions, it is aimed to draw attention to its impact on environmental pollution in the long term. Gross domestic product, energy consumption and industrialization, which are considered to affect carbon emissions, are also included in the model as explanatory variables. Study environmental impacts of blockchain transactions to raise awareness on the issue.