The ethical supply chain
I want to buy ethically made products but that kind of information is often unavailable or not 100% verifiable. A product goes through so many hands before it reaches the store that it is quite easy for companies to lie about or not even know how their products are made.
Blockchain can be used to track products from the manufacturer to the shelf and help prevent waste, inefficiency, fraud, and unethical practices by making supply chains more transparent. We are persuaded that they can also help consumers be better informed of how each product was made and shipped so they can make more environmentally friendly choices. This can also improve food safety.
Tracking food can allow me to buy local produce and know that it was grown locally. We can cut down carbon emissions by consuming local food. Blockchain can provide me with the information I want and this information will be right.
Reward me for recycling
I am never incentivized to participate in recycling programs because I have no idea how and where to do it, and why I would go through the trouble if I don’t know the impact I am making.
A recycling program on the blockchain could encourage me to participate by giving me a financial reward in the form of a cryptographic token in exchange for depositing recyclables like plastic containers, cans, or bottles. Similar initiatives already exist in Northern Europe.
Blockchain could also allow to track data and evaluate the impact of each individual or entity or region from participating in the program
Catalyze the use of renewable energies
The centralization of traditional power grids creates inefficiencies in energy distribution, such as having unused surplus. In regions affected by natural disasters or poverty, power outages can leave people without access to electricity.
A peer to peer blockchain based energy system can reduce the need to transmit electricity over long distances, which can result in losses along the way. It can help reduce the need for energy storage, because such trading can move electricity locally from where it’s being produced in excess to where it’s needed. We believe a better and more efficient system of energy distribution can be created out of blockchain. This seems to us like an important step towards moving away from our dependence on oil.
Power plant installations are expensive and are often financed by governments of large private companies. It should not have to be that way. A blockchain-based platform could enable any institutions, companies, and individuals to get returns from directly investing in renewable energy installations in their area and around the world.
Be charitable, for real
Bureaucracy, corruption, and inefficiency are still common in the charity space; thus, you might never know where your money went and how it was spent.
Blockchain technology can ensure that money does not end into the wrong hands. The cryptocurrency could even be released automatically when the parties meet environmental goals.
Blockchain allow us to transact without bank accounts or a centralized authority. This benefits people in countries where there is a lack of such infrastructures, because we can now send them money directly using the blockchain.
Because we never pay enough taxes…
In the current system, the environmental impact of each product is difficult to determine, and its carbon footprint is not factored into the price.
Tracking the carbon footprint of each product using the blockchain can be used to determine the amount of carbon tax to be charged on at the point of sale. If a product with a large carbon footprint is more expensive to buy, this would encourage buyers to buy products that are more environmentally friendly, and would therefore encourage companies to restructure their supply chains to meet the demand for such products.
A blockchain-based reputation system could also give each company and product a score based on the carbon footprint of the products they sell. This would make manufacturing more transparent, and discourage wasteful and environmentally unfriendly practices.
What is in it for us?
We believe it is difficult for individuals to currently visualize the direct impact that their actions have on the world. Acting sustainably does not have clearly established short-term incentives.
Blockchain will allow individuals and companies to see the real effect of their actions and incentivize them to take the actions that benefit the environment. Data such the carbon footprint of products, the greenhouse gas or waste emissions factories, or a company’s overall history of compliance to environmental standards, can be transparently tracked.
Companies and individuals can be incentivized to act in an environmentally sustainable way through the availability of information, tokenized credits being issued for taking certain actions, or blockchain-based reputation systems. We think these new types of incentives have the potential to disrupt the economy and benefit us as well as the next generations
These new incentives could completely change the drivers of our economy, and benefit not only us, but the future generations living on our planet. What is the future that you want for your children?
Bachelor of Commerce Graduate from McGill University & MiM Candidate at IE Business School