BLOCKCHAIN AND NATURAL CAPITAL:
FINANCING LOW-CARBON RESILIENT AGRICULTURE
1. Introduction2. Blockchain 101: Core Components3. The Role of Blockchain in Natural Capital 4. Current Use Cases and Applications5. Implications and Capacities
Katherine Foster
SEPTEMBER 12-13 2017
London UK
Blockchain: Headlines or Hype?
Institute for Distributed Technologies: What we do
Applied
Research & Development Training & Advisory
Common Database
Peer-to-Peer network
Cryptography
A globally accessible digital ledger
Cryptographic security and public and private keys
Core components of blockchain
Copied and stored on a distributed network
ACCESSIBILTY SECURITYTRANSPARENCY +ACCOUNTABILITY
Natural Capital and Agri- Finance
Valuation and Exchange (including for non tangible assets)
Finance Accessibility
Information and Data Availability
Verification, Disclosure and Transparency
Opportunities and Risk Assessments
Provenance and Certification ●Provenance Tracking and Certification of Diamonds
●Addressing document tampering, fraudulent claims, synthetic stones, double financing, etc.
●1.2 million diamonds globally in 72Billion USD industry
●Dubai –Operation Kimberly
Source: https://bitcoinmagazine.com/articles/dubais-global-blockchain-council-combats-conflict-diamonds-trading/
Provenance and Certification
Source: Provenance.org
Supply Chain Tracking
Credits: https://www.provenance.org/tracking_tuna_on_the_blockchain
https://www.olives101.com/2009/05/08/bottler-year-for-wa’s-olive-oil-industry/
●“Provenance” olive supply chain from two different producers
● Incorporates NGOs and existing certification
●Data capture and tracking through to suppliers, manufactures and consumers
● Incorporate finance accessibility, transparency and de-risking
Provenance: Full System from Producer to Consumer
Source: https://www.provenance.org/tracking_tuna_on_the_blockchain
LOCAL MARKET
“Inventory financing that de-risks transactions and unlocks capital opportunities for the entire supply chain”
“AgriDigital also enables you to provide financiers with a window into your inventory and contract positions, increasing transparency, and building trust to ultimately reduce risk”
Supply Chain
Finance on
Blockchain
Landowner
Supplier
Farmer
BankProducer
Retailers
Consumer
NGOs
New System$$
Implications
Farmer
●Quicker retrieval of payments - Incentivise before and on-timedelivery
●Borrow rating from corporate company - Banks lower their risk associated with lending
Producer
●Risk Management - verify both authenticity and provenance
●Automation - smart contracts! Effieciency
Corporate
● Increased brand protection - traceability
●Confirmation of delivery - transparency
Consumer
●Transparency and traceability
TREE cryptocurrency
TREE will set up an incentive for investment in and
maintenance of Natural Capital.
Blockchain and Natural Capital Capacities
●Trust across the supply chain
●Valuation and exchange of “non-tangible” assets
●Accessible finance (including forward payment obligation)
●Efficiency including cheaper transaction costs
●Supply Chain Accessibility, Transparency and Provenance
●Monitoring, reporting and verification
●Valuation / Certification
●Closing loop on supply chain
●Reduced Risks
Role of Blockchainin Natural
Capital
Global Carbon Markets
Local
Marketplace
Natural Capital Investment
Access to Finance
Global Digital Commons
Distributed ledgers of natural capital asset
registry
Tokens representing
natural assets
Validated and transparent direct
investment
Community natural capital
coins traded for local value
Natural capital asset exchanges on global scale
Thanks for your attention!
www.distributedtech.org
LinkedIn: Distributed Tech
Institute for
Distributed Technologies
The Blockchain Application Landscape
Open
Closed
