Australian startup NaturesCoin is developing a new blockchain cryptocurrency that the company says can convert corporate social responsibility initiatives from an expense into a liquid asset that business leaders can report to the market.
NaturesCoin, which was established last November by Brisbane-based founders Ian Jones and Hamish Macdonald, is expected to launch the startup’s namesake cryptocurrency by the end of this year, CIO Australia’s Byron Connolly reported.
Blockchain keeps cropping up all over the place — sustainable development is just one area — but what the heck is it? Blockchain is a unique type of technology that allows for the secure transmission of digital information. Instead of trying to hide important information behind a virtual wall, each block of data gets verified in a public digital ledger that’s decentralized and distributed.
The technology might be best known for underpinning cryptocurrencies like Bitcoin. However, Jones told CIO Australia that NaturesCoin isn’t “a standard old Ethereum blockchain” with a cryptocurrency sitting on top. “This is a broad-based economy with all the layers of activity and data that flows within that,” he told the outlet.
Projects that meet standards within the UN Sustainable Development programs can be supported by the NaturesCoin economy, the startup’s site explains. Corporations and communities within this economy can then join together to launch programs of their choice.
“Sustainable yet income-generating assets from water to forestry and wildlife underpin the economy,” Connolly explained. “These assets are ‘tokenized’ by the blockchain — security tokens can be traded on regulated securities exchanges. Those security tokens then trigger the release of utility tokens, the currency of the consumer economy where people can buy and sell, for example, sustainable-branded goods or donate to causes.”
Jones said he expects the company to have data flowing out of projects in West Africa, possibly in the UK, Europe, and Australia. Initiatives listed on the startup’s site include developing hemp fiber as an alternative to plastic, bee population revitalization, agribusiness, eco-tourism, and sustainable forestry development.
“We see a world where sustainable values are the currency, not just a byproduct of limited financial donations,” the NaturesCoin site says.
Earlier this year, blockchain was listed as one of seven emerging technologies in the Business and the Fourth Wave of Environmentalism survey of more than 500 executives across diverse companies. The survey showed that this “fourth wave” innovation could help supercharge sustainability efforts.
From improving product traceability to combatting food fraud, blockchain seems to be gaining momentum for sustainability, even though it remains an opaque concept to many executives. In May, Ben & Jerry’s began piloting the Poseidon Foundation’s blockchain-based retail platform in London to connect consumers to their carbon footprints.
