Bitcoin and crypto in general, have seen a lot of bad press. In particular related to extreme energy consumption from mining. Some articles have even suggested the digital currency growth could have a negative impact on the environment. Large energy consumption and mining are serious issues. Yet, the press hasn’t discussed much of the positive angles of Blockchain technology and how it could contribute to a better world.
Corporate Social Responsibility and Blockchain
Social Responsibility is imperative. It could widen the scope of social impact by multinational corporations. Blockchain has the power to innovate and transform the sector of Corporate Social Responsibility (CSR) and make it transparent, authentic and secure. We could be seeing synergies between corporations, big NGOs and small initiatives.
Growing into bigger, successful programs. We could also start seeing startups entering those collaborations.
Some areas that could be transformed are Governance, Humanitarian Aid, Agriculture, Financial Inclusion, Healthcare and Education, Energy and Resources, Environment and Climate and any kind of public registry such as Land Rights or Identity.
“CSR should be linked with the company’s main activity-whether the banking, insurance or energy industry – in order to keep and involve a commitment from upper management…”.
BBVA & Ripple already in
We know that corporations are taking notice. The investment firm BBVA has published an article in 2017 on their website related to this subject. The article mentions:
“CSR should be linked with the company’s main activity-whether the banking, insurance or energy industry – in order to keep and involve a commitment from upper management…”.
As a potential proposal, why not try a synergy between BBVA and Ripple for Good?
Ripple for Good is a project backed by the cryptocurrency Ripple. Its mission is to support partnered organisations through innovation and education to speed up financial inclusion.
Supply Chain and a better environment
Blockchain technology can revolutionize and reduce costs for the supply chain management, as well as creating trust in the eyes of the consumer. Blockchains can improve visibility, achieve significant reduction of errors and detect fake products.
It will also give us the opportunity to take significant steps towards sustainability by reducing environmental impact and carbon emissions. Hyperledger is IBM’s blockchain project for the Supply Chain.
Its main function is to facilitate goods tracking. Walmart has embraced it and uses it to track certain foods. It is an excellent way to guarantee freshness and prevent outbreaks.
Provenance
Like Walmart we could soon see other big companies using Blockchain technology. We could see more brands becoming more ethical and reinstating trust with consumers.
For example, fast food chains like McDonalds or KFC; both brands faced a lot of speculation in the past on the origin of their ingredients. It would be interesting to see them partner with a project such as IBM’s Hyperledger or Provenance.
Provenance is a Blockchain project that provides physical products with a digital identification. It makes them traceable and proves authenticity.
The story of Provenance – The blockchain startup revolutionizing supply chains
Transparency for Impact investing
An increasing number of investment ventures are directed towards projects with social impact. Unfortunately, the growth of such ventures is hindered by many factors.
Trust is an important one. Investments go to organizations or initiatives in countries with little to no infrastructure. They are often unable to confirm results and develop a sense of trust with investors.
Digital tokens could track the impact of the investment in a safe way without the need to share too much data. The token creation will also end the issue of transactions and fees. Which is a big problem in the developing world still to this day.
Conclusion
Decentralised ledgers and smart contracts provide trusted ways to measure impact and develop trust.
It is a real deal breaker for the use of Blockchain technology in the context of social impact.
Lack of trust brings obstacles to businesses and prevents significant growth. There is hope that we will see more cooperations and joint ventures for social good. Innovation usually breeds innovation. It will be interesting to see its vast potential.
Sources
BBVA, Provenance, Ripple
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