LOA Lab’s Better World Blockchain Climate Thesis
Blockchain technology has been making waves in various industries over the past decade, with its potential to optimize human coordination systems. From finance to healthcare, Web 3 tools are providing secure, decentralized systems for storing and sharing data, enabling new ways to enhance transparency and accountability.
At LOA Labs, we believe the most valuable application of blockchain is to help us combat the world’s biggest coordination problem: climate change. According to the UN’s Intergovernmental Panel on Climate Change, to limit warming to around 1.5°C, global greenhouse gas emissions must peak before 2025 and decrease by 43% by 2030, which leaves only seven years to take substantial action. However, the lack of climate action financing, accurate climate accounting, efficient coordination and data sharing platforms, and systems of accountability have prevented real progress.
We face a classic prisoner’s dilemma here. Each actor — whether it be a business, country, or person — has an incentive to prioritize their own economic growth over reducing greenhouse gas emissions, even though this leads to a worst-case scenario for everyone in the long run. So how can we apply blockchain to this use case and establish a trustless system that creates a level playing field that rewards climate actors for promoting cooperation and collective action?
This is precisely why we’ve developed the Better World Blockchain Climate Thesis. In it, we offer a set of 9 bold yet feasible Web 3-enabled solutions to improve climate action efforts. The Better World Blockchain Climate Thesis is not simply a theoretical idea, but rather a call to action for all of us to take part in shaping a regenerative future for our species and planet.
1. Circular Economy
The concept of a circular economy is based on three principles: eliminating waste and pollution, re-circulating materials, and regenerating ecosystems. Using a GPS system, Internet of Things (IoT), or other sensor technology blockchain can support in identifying and tracking materials and components throughout the supply chain, facilitating their reuse, remanufacturing, recycling, or composting when no longer useful.
Use Cases: Empower Plastics, Ocean Plastics Leadership Network (OPLN), Coca Cola
2. Donations & Philanthropy
There has been a growing concern about the transparency and accountability of charitable organizations. As a result, many potential donors have become hesitant to give, fearing that their funds will not be put to good use. Blockchain technology may be a solution that the charity sector needs to restore public trust, minimize costs, and ensure more funds can be channeled to the causes they intend to support. For example, blockchain can also provide more transparency and accountability through traceable giving milestones, enabling donors to track exactly how their contributions are being used.
Use cases: Gitcoin, Giveth, Angel Protocol, UNHCR Refugees x Stellar, Building Blocks, UNICEF CryptoFund
3. Biodiversity
Sustaining and regenerating environmental biodiversity is crucial for economic, human, and cultural vitality. Web 3 tools can be used to improve and incentivize biodiversity financing through digital, open-source MRV (Monitoring, Reporting, and Verification), improving transparency, and using standardized metrics to communicate real-time data. It can also increase cost-effectiveness and transparency in biodiversity impact programs, as well as aid in developing marketplaces for biodiversity-focused carbon credits. Regenerative land-based projects that wouldn’t otherwise receive funding can take advantage of blockchain’s ability to improve liquidity and access to new markets.
Use cases: Regen Registry of Regen Network, Wildlife Conservation Society (WCS), Walmart, Samsung, Curve Labs, Basin DAO, Ekonavi, Barichara, Eco Labs
4. Supply Chain Traceability
We need traceable and auditable supply chains, to allow consumers to make more informed decisions and hold companies accountable. The good news is that blockchain technology is already disrupting supply chain management design, creating transparent, tamper-proof records of information and inventory flows. Supply chain networks often suffer from limited visibility, but blockchain solutions provide shared, real-time data across all supply chain activities through distributed ledger technology. This can be applied to supply chain finance, logistics, or payments, automating or streamlining processes like adding new suppliers.
Case studies: Walmart, Nestlé & OpenSC, Tracr, The New Fork, Open Food Chain, BanQu, Bext360
5. Renewable Energy
Blockchain can enable decentralized energy grids and help us utilize more renewable energy sources, reducing our reliance on fossil fuels and creating a more sustainable energy system. The use of real-time power generation and consumption data allows stakeholders to coordinate the exchange of electricity and manage the risks associated with using renewable energy sources. For businesses and consumers, blockchain technology provides evidence of renewable energy usage accuracy. Additionally, blockchain can facilitate decentralized energy generation and peer-to-peer transactions, allowing for increased access for people with limited access to the grid.
Use cases: Power Ledger, LO3 Energy, Power Ledger, Grid Singularity, Energy Web Foundation
6. ESG and Carbon Markets
ESG has become an increasingly critical topic as organizations face increasing demands for accountability for their carbon footprint alongside other ethical issues. The lack of standardized metrics and the need for proof of impact are key challenges in setting high standards for ESG compliance. Blockchain technology can provide a solution here, creating a new model for carbon and impact accounting based on accessibility, transparency, liquidity, and low transaction fees, in addition to community-owned and governed infrastructure.
Use cases: Open Earth Foundation, Regen Network, Flowcarbon, Senken, Neutral Protocol, Toucan Protocol, Climate Collective, Klima DAO, Spirals Protocol, Blockchain for Climate Foundation, Save Planet Earth, ixo
7. Financial Inclusion
Climate justice requires ensuring financial access and inclusion for all individuals and communities, particularly those who have historically been marginalized and excluded from financial systems, in order to address the disproportionate impact of climate change on vulnerable populations. Blockchain has the potential to provide accessible solutions for banking, inexpensive global financial transactions, and loans, access to global currencies, decentralized digital identity (DID), and even Universal Basic Income (UBI). Its ability to facilitate global financial transactions at a cost of less than a penny can provide affordable alternatives for individuals sending money overseas or seeking to store their funds in a low-inflation global currency such as the USD.
Use cases: Ethereum Foundation, Valora from Celo, GoodDollar, Stellar, AZA Finance, Abra, Humaniq, Interchain Crypto Wallet from Opera and ixo Foundation, Moeda, Choco4Peace, Mojaloop, Glo Dollar
8. Governance & Voting
Effective climate action requires fair and inclusive governance infrastructure that empowers communities, fosters collaboration between stakeholders, and promotes transparency and accountability in decision-making. Blockchain can be used to create transparent, secure, and composable voting systems, which can spur greater participation and trust in democratic processes. Transparent, immutable, and encrypted governance infrastructure reduces the risk of voting interference and malicious activity.
Beyond national and local governance, Web 3 governance and voting tooling are revolutionizing user rights, as well as, how people collaborate and work together. Traditional business relies on centralized systems and servers owned primarily by large corporations, raising concerns about system vulnerability and users’ control over their data and other digital assets. Without a central authority, blockchain relies on the entire network to reach a consensus on items like software development and financial decision-making, as is evident within DAO and varying protocol consensus frameworks. Additionally, it’s also allowing for human coordination to move beyond the traditional nexus of nation-states or businesses, enabling bioregional coordination efforts to weave with global networks.
Use cases: Proof of Humanity, Commonwealth, Colony, e-Estonia, ReCommon, Regen Foundation, ReFiDAO
9. Decentralized Science
Blockchain can be used to create a more open-source and transparent system for scientific research, enabling greater collaboration and sharing of knowledge — two things that have been historically rare within the scientific establishment. Decentralized science, or DeSci, aims to revolutionize traditional scientific research by providing a public infrastructure that uses technologies such as blockchain, NFTs, DAOs, crypto tokens, and smart contracts. This can create an environment where researchers can easily share their work and access the research of others, and also provide diverse funding and censorship-resistant models. DeSci aims to shift the paradigm of industry-dominated science that is often heavily centralized, and influenced by market demands, to one that is decentralized, autonomous, and more trustworthy.
Use cases: DeSci World, ReSci Network, Regen Network, Golem, Protocol Labs, Quantum Resistant Ledger, Ocean Protocol
Let’s build together
We’re excited about helping Web3 changemakers build better world blockchain solutions. We’re always looking for new partners and collaborators in our mission to leverage blockchain tech to create a more just, regenerative world. If you have a project or use case that you’d like to explore, don’t hesitate to get in touch with us.
Written by: Emily Rogers, Product Marketing Manager at LOA Labs
About LOA Labs
LOA Labs is an integrated product and marketing studio. As the trusted partner for leading web3 companies building with impact in mind, like Regen Network, Blockchain Climate Leadership Network, and BICOWG, we’re recognized leaders in the field of regenerative finance (ReFi). We are a globally diverse team of experts who bring decades of experience in product, marketing, user experience, PR, and community growth. We partner with and accelerate organizations that are scaling impact with blockchain technology or are curious about how to develop their web3 strategy.
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