Blockchain in Cleantech
Exploring Blockchain Technology in the Cleantech industry
Humans rely on a delicate ecological balance in order to sustain large populations on our planet. We need predictive water cycles and temperatures in order to grow the food required to feed our populations.
We’re already seeing the disastrous effects of ecological change around the globe. Look no further than Bangladesh, Sub Saharan Africa, and the Maldives. The question becomes: what can do as a species to prevent a collapse of our civilization?
Matt Vitamante believes “government is not in the innovation business.” Governments are generally too conservative to invest in innovative technology which is both expensive to develop and often takes decades before value can be realized. This means the private sector will be responsible for creating technologies to combat our changing environment.
Matt also believes we need to focus on the basics such as clean water and clean food. Technology is crucial to our success but at the end of the day, we cannot eat a blockchain. If we don’t act fast, future wars will be fought over freshwater.
Can Innovative Technologies Such as Blockchain Help?
Instead of focusing on “saving the planet,” it’s more effective to lead with attractive business ventures that also contribute to saving our planet. This is important because enacting large scale change requires lots of capital and very capable business operators. If the cleantech investments aren’t lucrative then we risk losing capital to other industries.
Timing is very important as in the near future we may find ourselves in a world without jobs. When technologies such as Artificial Intelligence, Machine Learning, Robotics, and Blockchain reach their maturity, what use will we have for unskilled labor?
This makes planning and educating for a future workplace very challenging. The role of higher education will need to evolve in order to stay relevant. Instead of 4-year university degrees that teach students outdated information, we will need a more adaptive education model. Jobs involving programming machines and creative problem solving will only increase in value. Innovative education platforms such as Lamba School are a shining example of modern education.
How California Global Innovation Exchange (CAGIX) Can Help
One company leading the charge of cleantech is the California Global Innovation Exchange (CAGIX). We recently interviewed their CEO Matt Vitamante and explored the future of the cleantech industry through the lens of blockchain and other disruptive technologies.
They focus on helping innovative technologies make a positive impact on the war against climate change. Oftentimes this means aligning capital with technologies and advising startups to make the biggest impact possible.
We all witnessed the ICO boom and bust of 2017. CAGIX believes the ICO model will not be useful in the future. Instead, they believe a more appropriate structure for funding innovation is through Security Token Offerings (STO). By supporting businesses that are legally compliant, CAGIX believes they will attract more powerful partners such as corporates like IBM and even governmental support.
CAGIX combines a history of Investment Banking and Technology creating a new model of fighting climate change. This new model is more “mature” than the typical “wild wild west” ethos of early blockchain startups.
Cleantech and Blockchain Synergies
One shining example of cleantech is a German company called Entrade-X. They convert bio-waste into useable energy which has profound implications in countries like India. The company focuses on local energy production and consumption which aligns with the distributed ethos of the blockchain space.
In theory, Entrade-X could partner with a blockchain project such as Power Ledger to create a decentralized market for clean energy. A resilient and scalable market for energy incentivizes green energy investment which could lead to a faster transition to renewables on our planet.
An oil field consultant, Stephen Barbour, noticed that oil production facilities are burning natural gas which releases harmful greenhouse gases into the atmosphere. Instead of releasing the natural gas into the atmosphere, Stephan offers both a profitable and green-friendly solution: convert the natural gas into Bitcoin. Stephan offers shipping containers that automatically convert excess natural gas into energy which gets used by bitcoin miners. Instead of hurting the environment, these oil companies can convert waste into bitcoin.
While Bitcoin often gets attacked as an environmentally harmful cryptocurrency, the reality is much more nuanced than that. CoinShares released an in-depth report of the Bitcoin mining industry and they report that 77% of the electricity spent comes from renewable energy. This is roughly 4x the global average of renewable energy usage.
CoinShares also reports that Bitcoin miners seek out renewable and stranded energy assets because they are the cheapest. This is a good incentive as Bitcoin mining profitability incentivizes new investment in green energy infrastructure. A perfect synergy with CAGIX’s approach of saving the environment by making cleantech investments lucrative as well.
Let’s wrap up
While the future of our species is still unknown, it’s important that we all do our part. Humans are largely motivated by incentives and it’s important we focus on aligning incentives to the outcomes we desire: People, Planet, Profit.
If we can make investments in cleantech both profitable and helpful to the environment, there is no telling how much progress the human race can achieve in a couple of generations. Thankfully we have companies like CAGIX to funnel capital into the hands of the operators who need it most. Thanks for tuning in!
This interview is a part of the BlockchainBeyond Hype interview series produced by Blockchain Zoo. The interviews bring insights into experiences and thoughts of blockchain experts and technology professionals from all across the globe about blockchain projects, challenges, innovations and the future of blockchain within the blockchain jungle.
