Namaste Yogis. Welcome to the Blockchain & AI Forum, where your technology questions are answered! Here no question is too mundane. As a bonus, a proverb is also included. Today’s question comes from Tomas, in Mendoza, Argentina, and he wants to know if blockchains can build a better planet?
Tomas, you came to the right place. Afterall, if a technology is not improving the planet, it’s of no value. I researched your question and found a fantastic report by PwC that speaks to your question. I’ll start with a short mention of PwC, then offer an overview of their report.
PwC, stands for Price Waterhouse Cooper. With offices in 158 countries and more than 236,000 employees, PwC is a worldwide provider of professional services to businesses and governments around the globe. Bottom line, PwC is a major influencer and thought leader on the world stage and when they speak as an organization, they do so from a position of authority. What does PwC say about using blockchains to build a better planet? Essentially, plenty but before I delve into their findings, first a word concerning the report sponsors.
The report was prepared for the World Economic Forum Initiative on Shaping the Future of Environment and Natural Resources Security and the Stanford Woods Institute for the Environment. The report is one in a series of reports related to the “Fourth Industrial Revolution”. This particular paper looks at blockchain and the earth. Time to examine the seven major findings.
Supply Chains. PwC cites the ability of blockchain to create undeniable (and potentially unavoidable) transparency in supply chains. Recording transactional data throughout the supply chain on a blockchain and establishing an immutable record of provenance offers the potential for full traceability of products from source to store. Providing such transparency creates an opportunity to optimize supply-and-demand management, build resilience and ultimately enable more sustainable production, logistics and consumer choice.
Decentralized Management. PwC argues blockchain can underpin a transition to decentralized utility systems at scale. Platforms could collate distributed data on resources thereby ending the current asymmetry of information that exists between stakeholders, enabling more informed and perhaps decentralized decision making. With blockchain peer-to-peer transactions, dynamic pricing and optimal demand/supply balancing would of course be possible, says PwC.
New Financing. With blockchain tech, finance platforms could potentially revolutionize access to capital and unlock potential for new investors in projects that address environmental challenges. PwC says, blockchains could transform finance from shareholder values to stakeholder values. I like that!
Incentivizing Circular Economies. Could blockchain fundamentally change the way in which materials and natural resources are valued and traded, incentivizing individuals, companies and governments to unlock financial value from things that are currently wasted, discarded or treated as economically invaluable? PwC says yes!
Transforming Market Dynamics. PwC, correctly notes the power of combining blockchain with crypto tokens to optimize existing market, e.g. carbon, to create new opportunities for carbon credit transactions. Nice!
Next-Gen Sustainability Monitoring, Reporting and Verification. The tech that powers blockchain has the potential to transform both sustainability reporting and assurances, says PwC. This could drive a new wave of accountability and method for managing risk and reward.
Disaster Preparedness and Humanitarian Relief. First responders and relief workers using blockchain could use a new shared system in disaster preparedness and relief to improve the efficiency, effectiveness, coordination and trust of resources. An interoperable decentralized system could enable the sharing of information and rapid automated transactions via smart contracts. Awesome!
Time to end with this proverb from Guatemala: “skill is worth more than strength.”
Until next time,
Yogi Nelson
Blockchain & AI Forum 