VeChain — Using Blockchain To Drive The Sustainability Revolution
Earth carries finite resources and a delicate ecological system powered biology, energy and chemistry. For the longest time, humans have consumed resources in a linear fashion — we extract, we transform, we use, we dispose. This approach has negatively affected the atmosphere and biosphere — but what if there was a better way?
Fast forward to 2023 and humanity has built a technology that can fundamentally change our relationship with consumption, waste and sustainability. That technology is blockchain — our first truth machine.
VeChain is incredibly proud to be a pioneer of this new world.
Enabling True Digital-Sustainability
Blockchains offer an entirely new way to manage and share information. For the first time, global society can collaborate effectively, efficiently and transparently at scale. VeChain will operate as layer of trust for the hyper-connected era of big-data.
We’re now actively helping shape the direction of what will be some of the most crucial decades for humanity as we rapidly reshape the global economy to limit the historical impacts of economic activity.
If data is the new oil, blockchain is the new oil rig. Using blockchain, siloed or ‘dark’ data can finally be harnessed to provide unprecedented granularity and insights in to human activity, helping us achieve sustainability targets. But how?
One of the ways the VeChainThor blockchain will empower society is through incentivised ecosystems. By leveraging data generated by the every day activities of people, we can use tokens and credits to actively reward and incentivise sustainable behaviour.
In 2018, we launched the first iteration of this incentivised ecosystem, in collaboration with DNV, and BYD, a leading global electric vehicle company.
In it, drivers of BYD electric vehicles could voluntarily share their travel data at the end of their journey. Using smart contracts co-developed with DNV, these data would be used to calculate the offset carbon emissions, rewarding drivers with carbon credits.
These credits could then be redeemed for discounts on insurance, food and more from other companies participating in the ecosystem. Such a system rewards individuals who make environmentally conscious lifestyle choices.
Building on the successes of this ecosystem, the VeChain Foundation began working alongside the San Marino government in 2020. In the San Marino model, a greater array of activities generate tokens, including areas such as private electric mobility, innovative mobility solutions such as car sharing, using public transport, reducing energy and water consumption, photovoltaic installation, waste recycling and management and sustainable tourism [Source: San Marino 2030 Sustainable Development Roadmap].
Blockchain is uniquely able to harmonise these currently fragmented data points, synthesising a holistic image of an individual’s green contributions to create real economic value. At a larger scales, these individual shifts lead to large scale trends, helping drive meaningful action on sustainability by offering individuals rewards and financial incentives.
The next phase for VeChain’s digital ecosystems is scaling its solutions across Europe and globally. We’ve since expanded to many other kinds of use cases - more information will be revealed in our upcoming whitepaper.
Trust is one of the biggest hurdles to global sustainability. International collaboration requires data quality assurances and transparency within data trails. VeChain’s blockchain technology solves this trust crisis.
The VeChain Foundation has worked closely with DNV, globally renowned compliance experts, to develop blockchain-based technological standards that ensure trust in processes.
In 2021, Hydro Norsk, a Norwegian Aluminium producer, began using a product built by DNV on VeChainThor called ‘Tag.Trace.Trust’. More recently, Mercedes became a buyer of Hydro Norsk’s green aluminium, utilising blockchain to gain insights about the carbon intensity of metals used in its vehicles.
The transparent nature of blockchain allows partners such as PwC CaTSH or Grant Thornton Cyprus to carry out instant auditing on the data trails of their clients, drastically reducing costs and time requirements, enabling near real time auditing.
The outcomes of such developments are secure trails of instantly verifiable, high quality and trustworthy data. For sustainability to flourish, millions of participants will need to collaborate efficiently in real time and so the elimination of poor quality data is paramount.
VeChain’s blockchain technology enables an entirely new kind of economic model that places trust and transparency in data at its core.
In the circular economy, enterprises become accountable for the life cycles of products and their associated emissions. Blockchain ensures companies are held accountable for the resources they consume by immutably logging all associated data using blockchain.
In Europe, companies above a certain size are required to report carbon emissions as part of business operations. In the future, this will expand to ‘scope 3’ emissions — those related to their entire value chains. VeChain’s blockchain technology is able to synthesise these upstream data sources to enable accurate emissions calculations, ensure compliance with regulators and aid the long term health of the biosphere by creating accountability for carbon emissions.
By doing so, enterprises, the largest consumers and emitters of resources and emissions respectively, act in line with the best interests of society and the natural world at large.
More Than A Sustainable Blockchain
Based on our interactions, it’s increasingly clear that people are beginning to recognise the revolutionary power of blockchain technology. No technology has had such a profound impact on information sharing since the birth of the internet.
VeChain is proud to be a pioneer in this new world, leading the development of real-world sustainability applications and mass adoption of the technology. We’ve taken abstract concepts and worked with world leaders to transform them into tangible solutions.
As we head into 2023 and blockchain regulations continue to unfold globally, the VeChain Foundation remains vigilant and ready to deliver on the unfolding narrative of blockchain as a tool for good. Blockchain technology is not just a ‘nice-to-have’ — it is an imperative.
About The VeChain Foundation
The VeChain Foundation, headquartered in San Marino, Europe, is the non-profit organisation behind the development of VeChainThor, a world leading smart contract platform spearheading the real world adoption of blockchain technology.
By leveraging the capabilities of ‘trustless’ data (information without intermediaries), smart contracts and IoT technologies, VeChainThor has delivered solutions in a wide array of fields, and now turns its attention to arguably the greatest challenge of all — building technologies and ecosystems to drive true sustainability and digital transformation at global scale.
Visit https://www.vechain.org to learn more.