When the Sustainable Growth Targets, or SDGs, have been conceived again in 2012, blockchain know-how was in its early days. Few may have foreseen the trajectory and the potential of blockchain for advancing these bold targets.

However as we speak, we see alternatives for blockchain know-how to recast standard approaches to sustainable growth — and speed up progress if deployed responsibly.

Macro traits of 2020

There are a selection of macro traits this yr on the earth of blockchain and sustainable growth that present context. This has been — and can proceed to be — an essential yr for laying the groundwork for main disruptors like digital foreign money and digital identification.

The trajectory of blockchain know-how, in some methods, chimes with that of its predecessors. Following buzz round bold goals corresponding to monetary inclusion and information possession, there was restricted work to outline what this implies and appears like. In truth, if dangers and advantages will not be rigorously evaluated, there may be potential for widening present gaps or the exploitation of susceptible populations.

Associated: Monetary inclusion, cryptocurrency and the creating world

It has been encouraging to see momentum towards defining and self-regulating round person safety, such because the Global Digital Finance Code and the Presidio Principles, however it’s essential that these conversations keep grounded within the realities of shopper safety, infrastructure capabilities, and the affect of politics and cultural notions to make sure that the know-how is ready to meaningfully contribute to sustainable growth goals.

Associated: Blockchain digital ID — Placing folks answerable for their information

Whereas some organizations such because the Human Rights Basis and American Crimson Cross have long-accepted cryptocurrency donations, now we have seen a rise within the variety of gamers taking a look at digital foreign money as an avenue for financing the SDGs. For example, the UNICEF Cryptocurrency Fund introduced its largest spherical of investments this yr, and plenty of platforms have been supporting a crypto model of Giving Tuesday for a while.

Associated: The way forward for philanthropy lies in blockchain know-how

As conversations round central financial institution digital currencies and stablecoins decide up, so are these on how digital foreign money could also be a instrument for direct assist supply, as we’ve seen with the World Meals Programme’s Constructing Blocks undertaking, which makes use of blockchain know-how to authenticate and register transactions.

There has additionally been a sustained give attention to digital identification as a key enabler of the SDGs. Whereas many of those efforts are in early levels — just like the recently-launched PayID that introduced collectively plenty of business leaders — it will definitely be an area to look at as a foundational factor for future progress.

A more in-depth look: Three areas of focus

  • Constructing resilient and clear provide chains.

The United Nations’ Sustainable Growth Objective 9 states:

“Construct resilient infrastructure, promote sustainable industrialization and foster innovation.”

As broadly reported, the COVID-19 pandemic has highlighted the challenges and vulnerabilities in international provide chains, rising requires transparency and traceability. In response, we’ve seen a number of initiatives investigating — or accelerating present investigations — into blockchain know-how to fulfill these wants.

Central to the whole lot from international commerce to assist supply, provide chains are an essential element of the sustainable growth equation. Blockchain know-how for provide chain use instances has mirrored this selection. For example, multi-national growth banks such because the Asian Growth Financial institution and Inter-American Growth Financial institution are investigating using blockchain for commerce single window tasks in South Asia and Latin America, respectively.

Associated: Empowering provide chain digital transformation with distributed ledgers

StaTwig, an India-based firm and graduate of the UNICEF Innovation Fund, has piloted using blockchain know-how to trace vaccine supply in an japanese state. Anheuser-Busch InBev, a multinational drink and brewing firm, piloted the know-how in Zambia to facilitate transparency in pricing round regionally sourced crops corresponding to cassava, for which farmers had been traditionally underpaid.

Nonetheless, challenges stay. Successfully rethinking international provide chains requires unprecedented cooperation amongst business gamers and cautious consideration of parts corresponding to interoperability and information integrity.

  • Creating stronger and extra accountable public establishments.

The United Nations’ Sustainable Growth Objective 16 states:

“Promote peaceable and inclusive societies for sustainable growth, present entry to justice for all and construct efficient, accountable and inclusive establishments in any respect ranges.”

Public procurement is likely one of the largest sources of presidency spending and, relatedly, the best supply of official corruption worldwide. The complexity, relative opacity and subjectivity concerned contribute to a considerable amount of wasted cash. To extend exterior oversight, the federal government of Colombia undertook a proof-of-concept for a blockchain-based procurement system. Whereas the know-how alone just isn’t sufficient, it may be a strong instrument when partnered with “monitorship” fashions, corresponding to these established by Transparency International or the Partnership for Transparency Fund.

Associated: Bribery will get blocked: Stamping out corruption with blockchain tech

As well as, tax administration may be an essential instrument or a barrier in terms of home targets for the SDGs. According to the World Financial institution, “30 of the 75 poorest nations gather lower than 15% of GDP in taxes” — a essential threshold for offering fundamental providers. The Prosperity Collaborative, a coalition of a number of public and private-sector actors, is inspecting how open-source applied sciences, together with blockchain, might have a task to play in public finance.

  • Spurring accountable sourcing and consumption.

The United Nations’ Sustainable Growth Objective 12 states:

“Guarantee sustainable consumption and manufacturing patterns.”

As local weather change and human rights are on the forefront of shoppers’ minds, accountable consumption has change into a essential space of focus for a lot of companies.

This yr, we’ve seen blockchain know-how on the middle of many of those conversations. For instance, the Mining and Metals Blockchain Initiative launched final yr and was introduced collectively by seven business heavyweights, together with De Beers and Eurasian Sources Group, to discover using blockchain know-how to trace carbon emissions and provide chain transparency. Across the identical time, the Accountable Sourcing Blockchain Community brought collectively automotive gamers together with Ford and Volkswagen to pilot using blockchain for the moral sourcing of minerals.

The views, ideas and opinions expressed listed below are the writer’s alone and don’t essentially mirror or characterize the views and opinions of Cointelegraph.

Sumedha Deshmukh is the platform curator on the Blockchain and Digital Property group on the World Financial Discussion board. She oversees the group’s engagement with a wide selection of private and non-private sector actors and manages a portfolio of tasks protecting regulation, DeFi and user-centric growth. With a background in economics and coverage, she beforehand held positions at Devex, a media firm targeted on international growth, and Deloitte.