The World Economic Forum (WEF) has recently published a document entitled, "Building Block (chain) s for a better planet". The research paper was created in collaboration with PWC and Stanford Woods Institute for the Environment at Stanford University. It is an extremely positive piece for blockchain and offers numerous areas where blockchain could make a big difference.
According to the report,
"Blockchain case-case solutions that are particularly relevant in all environmental applications tend to group around the following cross-cutting themes: making the transition system cleaner and decentralized systems more efficient, resource negotiation or peer-to-peer permissions; and management of the supply chain, new financing models for environmental results, and the realization of non-financial value and natural capital. "
Perhaps the most interesting idea contained in the aforementioned statement is the notion of "non-financial value". In many ways, modern culture has become focused on laser to make money, while nature (the underlying value) of money has been all but forgotten.
The World Economic Forum sees promise in Blockchain
While it is written rather dry, the report raises some environmental problems that are often not published too often by the press. Blockchain has the ability to reduce inefficiencies, which can also be a big advantage for our global ecosystem.
The report goes on to say that "Although we have experienced very positive economic growth (real production has grown by 20 times and 700 million people have moved to the middle class), this has come at the expense of our natural environment, pursuing economic growth, and therefore the question, is increasing the pressure on our environment " that is a good point to do.
Overcome the Hype
There was a lot of hype around the blockchain.
The word "blockchain" was almost synonymous with cryptography until recently, when people began to awaken to the functionality of Distributed Ledger Technology (DLT). The WEF report seems to vanish the smoke and mirrors of which many are involved and pushes to the underlying potential that the blockchain brings in many areas of commerce.
The WEF has cited the energy sector and utilities as a great place for blockchain applications. Of the hundreds of ICOs arriving on the market last year, less than 1% of them concerned energy or utilities. The WEF report identified 65 blockchain use cases and many of these are in the energy sector.
The 4 main areas where Blockchain could make the difference
The WEF has identified 8 areas in which the blockchain could become a leading technology. Here are four of these, each of which could lead to new businesses that create real social value for all the people involved.
A transparent supply chain
The WEF may be a little behind the blockchain party in the logistics sector. They see the blockchain as the inauguration of a new era in the way global supply chains work, which aligns with the platforms that companies like IBM are implementing in the real world right now.
Read: Blockchain and supply chain management
TWO Management of sustainable and decentralized resources
A centralized model of resource distribution was the best we could do. In a world where coal or natural gas constituted the backbone of the electricity grid, centralized distribution by sophisticated parties was probably the best way to proceed. Now that non-traditional feeding systems are feasible, it is probably time to make some changes to the way we allocate energy.
THREE new forms of financing and investment
The financial system has long been awaited for a thorough review. Blockchain is apparently tailor-made for microfinance and micro-loans, which could change the way people access capital everywhere. Instead of green energy suppliers competing for loans at prevailing market rates, blockchain could allow people to lend to favorable conditions to companies they want to support.
FOUR Blockchain allows incentive circulating economies
When you buy a product that is sold in a plastic container, you are not paying a realistic amount of money. There are a number of reasons for this, but the huge tax breaks that the oil companies receive are one of them.
There is little incentive to recycle most of the plastic products, which is why there is a huge amount of plastic floating in the middle of the Pacific Ocean. Blockchain is already used by IBM to incentivize Pacific garbage collection, and there are many other areas that could be helped by the same technology.