DONATE CRYPTOCURRENCY

From Forbes:

At its core, blockchain is a distributed digital ledger that stores data of any kind. A blockchain can record information about cryptocurrency transactions, NFT ownership or DeFi smart contracts.

While any conventional database can store this sort of information, blockchain is unique in that it’s totally decentralized. Rather than being maintained in one location, by a centralized administrator—think of an Excel spreadsheet or a bank database—many identical copies of a blockchain database are held on multiple computers spread out across a network. These individual computers are referred to as nodes.

As fresh data is added to the network, a new “block” is created and attached to the “chain.” This involves all nodes updating their version of the blockchain ledger to be identical.

How these new blocks are created is key to why blockchain is considered highly secure. A majority of nodes must verify and confirm the legitimacy of the new data before a new block can be added to the ledger. For a cryptocurrency, they might involve ensuring that new transactions in a block were not fraudulent, or that coins had not been spent more than once. This is different from a standalone database or spreadsheet, where one person can make changes without oversight.

Transactions are typically secured using cryptography, meaning the nodes need to solve complex mathematical equations to process a transaction.

“As a reward for their efforts in validating changes to the shared data, nodes are typically rewarded with new amounts of the blockchain’s native currency—e.g., new bitcoin on the bitcoin blockchain,” says Sarah Shtylman, fintech and blockchain counsel with Perkins Coie.

There are both public and private blockchains. In a public blockchain, anyone can participate meaning they can read, write or audit the data on the blockchain. Notably, it is very difficult to alter transactions logged in a public blockchain as no single authority controls the nodes.

A private blockchain, meanwhile, is controlled by an organization or group. Only it can decide who is invited to the system plus it has the authority to go back and alter the blockchain. This private blockchain process is more similar to an in-house data storage system except spread over multiple nodes to increase security.

From NerdWallet:

Cryptocurrency is a form of payment that can be exchanged online for goods and services. Many companies have issued their own currencies, often called tokens, and these can be traded specifically for the goods or services that the company provides.

As of October 2021, more than 13,000 different cryptocurrencies are traded publicly, according to CoinMarketCap.com, a market research website. And cryptocurrencies continue to proliferate, raising money through initial coin offerings, or ICOs. The total value of all cryptocurrencies on Oct. 22, 2021, was more than $2.5 trillion, having fallen off an all-time high above $2.6 trillion days earlier.

Blockchain technology has the potential to support 5 Gyres (and other nonprofit conservation efforts writ large) in multiple ways. Critically, it can:

Open new portals for fundraising wherein international donations are easier to accept. We can reach a new donor audience, and much more!

Create transparent, decentralized information storage systems that can provide tamper-resistant data repositories beyond the reach of corporations and other actors that may have an incentive to control, obscure, or alter this information

Backbone the creation of new partnerships and immersive experiential platforms that can magnify the impact of marketing and outreach efforts

Create trustless portals connecting marketplaces and social media platforms directly to the activists, artists, and conservation organizations that power global environmental efforts (think being able to instantly and safely send tips via twitter or instagram to creators of content -- and in this case, environmental progress -- without the need for banks, personal information, or fiat currency)

As a conservation organization that has decided to accept cryptocurrency, we at 5 Gyres feel that it is our responsibility to speak directly and honestly about its actual environmental impacts. There is a great deal of granularity in this space and the overarching myth that “all crypto is dirty” needs to be dispelled. The reality is that there are many powerful and important ways to use blockchain in a positive, high-impact manner that can benefit the planet and its people.

Blockchain technology and cryptocurrency are frequently accused of having significant negative environmental impacts due to their energy use and carbon emissions. Historically there has been a strong case for this perspective, as early blockchain ecosystems -- most specifically bitcoin -- relied on energy-intensive proof-of-work (POW) consensus mechanisms that, when not powered by renewables, led to high levels of fossil fuel consumption.

While there is still a great deal of work to be done, most of today’s blockchain tech has evolved to circumvent this challenge. POW technology has been largely supplanted by a new consensus mechanism known as proof-of-stake (POS), which is vastly more efficient than POW. The energetic requirements of POS are only a tiny fraction of what a similar-size POW ecosystem would require. To illustrate the magnitude of this difference, consider the following comparison:

The bitcoin network can conduct about 5 transactions per second, incurring an energy cost-per-transaction of 830 kilowatt hours (kWh). By contrast, Tezos, a modern POS network, is able to conduct around 52 transactions per second, with an energy cost-per-transaction of 30 milliwatt hours (mWh). Given that one kWh is equivalent to one million mWh, the energy use difference between Bitcoin and Tezos falls around a factor of 25 million.

The widespread adoption of POS technology by a growing percentage of the blockchain sector is allowing us to accomplish more at a rapidly decreasing cost in terms of power-per-task. At the same time, even the world’s remaining POW ecosystems are drawing an increasing portion of their energy from renewables. In the case of bitcoin, this figure is now well over half of its total energy consumption. While this is certainly not to the level of making bitcoin a sustainable enterprise, it is important to note the forward progress. At the same time, 5 Gyres cannot currently recommend using bitcoin until the chain has improved even further, as it’s current fossil fuel consumption level is still far too significant.

We must also evaluate blockchain and cryptocurrency not only in a theoretical vacuum, but side-by-side with conventional financial systems. It’s important to compare the impact of cryptocurrency to the sector that it stands to revolutionize, or in some cases, even replace. Cryptocurrencies do not rely on banks, commutes, parking lots, paper trails, office buildings, printing, or real estate development in the way that conventional finance does. To properly evaluate the true environmental impact of cryptocurrency, its footprint should be compared to that of the infrastructure, utilities, transportation, and other requirements of the conventional financial sector.

There is no debate that cryptocurrency can be environmentally damaging. The early years of bitcoin taught us that. That said, we are learning, and the sector is improving at an incredible rate. When developed thoughtfully and managed responsibly, cryptocurrency has the potential not only to achieve sustainability, but to actually increase efficiency, bolster renewable energy, and reduce the environmental impact of our financial systems as it replaces conventional banking infrastructure with digital decentralized systems.

We would encourage our supporters to research this space and learn more about the many different types of blockchain technology that are currently available. Additionally, for supporters looking to support our work via cryptocurrency, we kindly request that you make these donations in proof-of-stake currencies.

In essence, cryptocurrency offers the opportunity for many individuals to take control of a greater degree of their financial welfare. Being able to store value in a decentralized digital ledger can help distance marginalized groups and individuals from the economic confinement that often stems from the current global financial system, especially in countries that have weak or unpredictable currencies and unstable or corrupt government structures.

Much of the world’s population, especially in the global south, remains unbanked and/or lives with limited ability to save money in a safe and economically sensible manner. Additionally, many individuals find themselves unable to improve their standards of living due to the accessibility of loans and a lack of control over personal assets. Cryptocurrency may be able to help people transcend this situation by breaking them free from their dependence on centralized systems (such as banks), oversight entities that are prone to corruption (such as certain governments or government agencies), and the vagaries of inflation.

We believe in the potential for crypto and blockchain technology to support our mission in several of the following ways. We also recognize that given how new and quickly evolving these platforms are, there may be additional benefits that we have yet to explore.

First, for the reasons listed above, we are tracking the social justice and equity benefits of blockchain technology. Given the undeniable links between environmental contamination, social justice, and self-determination, blockchain could support vulnerable populations towards greater agency over their own finances and decision making. When people have more control over their basic needs, there is more room to engage in conversation activities. While this connection may not directly touch our day to day work, we are nonetheless open and curious.

Second, and perhaps a more direct linkage: cryptocurrency can accelerate our mission by connecting us to new donor communities, partnerships, and supporters who we wouldn’t necessarily come across in our more traditional development work. Greater support for our mission means more time spent on executing programs.

Finally, we believe that blockchain technology, given its core facets of transparency and open source, accessible data storage, could align with our own science and data collection goals. These are linkages we will explore over the coming year, as we dive deeper into the key data and research we need to better determine the sources and solutions to plastic pollution.

Our organization began with an adventurous, risky project, crossing the Pacific on a raft made from 15,000 plastic bottles and a Cessna, with modern, renewable energy electronics serving as the navigation system. At our core, we are risk takers who embrace a quickly changing world of innovation, while also believing whole heartedly in tried and true methods of grassroots organizing and person to person outreach. We are open to the journey!

In many ways, yes! Cryptocurrencies allow donors to take advantage of blockchain technology that can provide secure fund transfers, low transaction costs, and in many cases, near-instantaneous transaction speeds.

Currently, the best way is by making a donation, either to 5 Gyres or to other allied organizations that are working to improve the state of our planet’s oceans. As cryptocurrency adoption within the conservation sector evolves, we will continue exploring unique partnerships and collaborative efforts to support plastic pollution reduction through this powerful platform.

Our confirmed blockchain partners are listed here. If you see a different project that claims to support us, please check with us first before donating.

We are happy to share our experiences and offer guidance in this space. Please reach out to our development team if we can be of any assistance!

5 Gyres welcomes donations in all cryptocurrencies listed on our website. If you'd like to donate in a currency not listed, please contact us and we will happily accommodate. Please note that 5 Gyres does not accept donations in proof-of-work currencies.

Yes, we can manually generate cryptocurrency donation receipts for those who request them beforehand. Please email us BEFORE making your donation.

The IRS classifies cryptocurrencies as property, so cryptocurrency donations to 501(c)3 charities receive the same tax treatment as stocks. Donating cryptocurrency is a non-taxable event, meaning you do not owe capital gains tax on the appreciated amount and can deduct it on your taxes. This makes cryptocurrency donations one of the most tax-efficient ways to support your favorite cause. Contact your tax or financial advisor for more information.