It’s been a whirlwind of learning as I dive deeper into the blockchain ecosystem. I wrote an article for the Sallan Foundation about how a blockchain token can accelerate renewable energy by making a new type of retailer. Yesterday I wrote a blog piece that began to share a bit of the idea I’ve been working on and how it might stimulate new growth in Puerto Rico and posted it in the Civic Hall community slack channel I’m part of.
Your cynicism is duly noted. Blockchain doesn’t solve all the things. It probably doesn’t even solve most of the things. However it does allow for new innovations to occur in a much better way. Here’s why:
- New ideas can raise money without giving up any equity. As an entrepreneur with a goal to build a company that contributes to reversing climate change, I don’t want to be squeezed by capital that distorts the mission. Now I don’t have to because I can issue a new currency and the people who use it will enhance the mission.
- Tokenizing becomes a new way to finance a desired impact. We are minting, out of thin air, a new way to pay people to remove carbon dioxide from the atmosphere. This could not have been possible even 4 years ago.
- Fraud becomes impossible. It is impossible to cheat or change values stored in a blockchain becase they are impossible to hack. That is because they exist as 1’s and 0’s on a distributed ledger; hacking one would require hacking all of them. This immutability allows for more trust in the integrity of all transactions.
- Traditional market barriers and middle men become obsolete. We’ve been studying the many barriers faced by the voluntary carbon offset markets. Complicated auditing and verification processes, cumbersome expenses to validate new protocols, and costly lawyer fees, can evaporate when a process becomes transparent on a blockchain.
- Humans are more involved. This is not to say widespread blockchain applications won’t accelerate traditional job loss when combined with automation and artificial intelligence. It will. However blockchain applications will allow humans to connect more directly without the use of a middle man based on digital trust.
Also published on Medium.