This Landscape Assessment evaluates the current state of blockchain-based technology applications and the role this new and foundational technology can play in enabling innovations with the potential to accelerate climate action (mitigation, adaptation, and resilience) and resulting positive outcomes for end users in emerging markets.
The insights and evidence revealed in this Assessment can inform the actions of CIFAR Alliance members and stakeholders - including impact investors, catalytic funders, innovators and start-ups, policymakers, and ecosystem enablers - in increasing resilience and creating economic opportunities for financially underserved populations in the climate transition. Download the full list of blockchain-based applications in this Landscape Assessment here.
Author: Nelly Ramírez Moncada, Co-Lead of the Blockchain for Resilience Co-Lab and the Secretariat of the CIFAR Alliance.
Reviewer: Tyler Ferdinand, Climate Specialist at BFA Global and Co-Lead of the Climate Smart Innovation Hub.
The CIFAR Alliance is dedicated to advancing tech-enabled climate finance solutions for vulnerable people and the planet. The Alliance aims to strengthen the ecosystem for inclusive finance innovation in climate action for the equitable betterment of all people, the planet, and prosperity. We aim to increase collective knowledge and expertise, catalyze partnerships, and enable brave innovators to grow, replicate, and scale for impact.
This research is an output of the CIFAR Alliance Blockchain for Resilience Working Group, which is comprised of a diverse range of organizations, including a financial technology company, an African financial sector development organization, an impact investor, an innovation firm, and an organization aiming at conserving nature and promote sustainable development globally, all working together to explore the potential of blockchain technology to enhance resilience and promote sustainable development.
We would like to recognize contributions from Laura Fuentes, Bricia Guzmán, Jahed Monand, David del Ser and Kenneth Kou, as well as these blockchain-based initiatives who shared their insights and time with the Working Group members, Dropchain, Return, Climate Collective, Tolam, Empowa, Hypha, The Gold Standard, Ethic Hub, CELO, Kotany Pay, ReFi DAO and Giveth.
Considerations and Disclaimers
Aligned with the CIFAR Alliance purpose and goals, the Blockchain for Resilience Working Group approaches our research from the following perspective: This research is an exploratory, first-phase approach to understanding blockchain, the technology and some of the use-cases in the climate space in emerging markets. The research lens is global, geared toward emerging markets, mainly when the use cases could be impactful and blockchain is a plausible option. It also considers a gender lens, particularly trying to understand what unique barriers women face in each use-case analysis. Have some evidence of positive impact on underserved communities and emerging markets context (ncluding activities that will catalyze a new body of evidence). Pursue development within relevant legal and regulatory environments. Consider how it may support local economies and businesses, and seek opportunities to include small and medium enterprises, including potential for scalability. Consider how data – precisely the personal information of each use case analyzed – will be shared, stored, and protected. Employ a Do No Harm approach to focus on use cases we believe are net-positive for the end users and the climate but can't warrant the credibility of the use cases featured in this assessment. In our research, we will be cognisant that when analyzing Blockchain technology, there are two ways to approach the climate dimension, by their energy/emissions and use-case as part of the climate-innovation space. We will mention other initiatives, such as the Framework on Accounting for Crypto Climate Impacts, Crypto Climate Accord, Cambridge Center for Alternative Finance, and others, and + UCL’s Centre for Blockchain Technologies. The summary of the number and types of projects assessed, with categorization/groupings and high-level discussion of the various approaches (tokens, DAOs, etc.) and interventions (carbon markets, insurance, landscape restoration, etc.) Illustrative examples/case studies only a sample of projects/innovators. Please note that the information contained in this report on blockchain initiatives, released in April 2023, may be subject to change due to the dynamic nature of the industry.
This report explores the potential of blockchain technology to promote sustainability and address climate change challenges in emerging markets. The European Union and the United States are taking steps to unlock the potential of blockchain for a data-powered green economy, and many ecosystem enablers are promoting collaboration, research, financing pilots, and accelerating initiatives in the blockchain and climate ecosystem.
After conducting consultations with key stakeholders and extensive desk research, 52 initiatives were identified that are operating in emerging markets with a focus on climate action. Carbon finance has the highest representation, accounting for 41.2% of the identified initiatives. However, these blockchain initiatives face significant gaps in adoption, regulation, infrastructure, and data quality that limit their potential impact.
The report provides a brief overview of nine initiatives that are using blockchain technology to promote sustainability and address climate change challenges in emerging markets, exploring specific use cases on how blockchain technology can incentivize sustainable land use, enhance investment and insurance for small-scale farmers, promote ocean conservation, and mitigate climate risk.
While lack of financing, navigating the regulatory landscape, and developing new products are the primary challenges these initiatives face, specific government or private sector policies and collaborations with notable partners have played a crucial role in their successful implementation. The report concludes with a call to action to invest in blockchain literacy, enhance user experience, stocktake regulatory barriers, create open data commons, and innovate initiatives that support interoperability to unlock the potential of blockchain for environmental and social initiatives.
1. Blockchain and climate
1a. Web3 in the broader context: How are we defining the technology we are studying, Blockchain, crypto, Web3?
The term Web3 was first used by Gavin Wood, Polkadot Founder and Co-founder of Ethereum, in 2014. In his words, “Web3 is really sort of an alternative vision of the web, where the services that we use are not hosted by a single service provider company, but rather they’re sort of purely algorithmic things that are, in some sense, hosted by everybody... The idea being that all participants sort of contribute a small slice of the ultimate service”. Other descriptions simply state: Web1 was read-only, Web2 is read-write, Web3 will be read-write-own. The Ethereum organization provided a definition indicating that “Web3 has become a catch-all term for the vision of a new, better internet”, describing it as decentralized, permissionless, with native payments through cryptocurrencies, and trustless.
The key technology behind Web3 is blockchain. An exciting development in the world of data storage and processing, blockchain has the potential to revolutionize how we store, share, and use data securely across systems and networks for various applications, ranging from digital currency to smart contracts. A public blockchain is an immutable, tamper-proof, shared ledger of state changes of a digital asset. This means that all records of transactions are visible to all users on the system but cannot be modified or tampered with once they are added to the blockchain.
A growing number of blockchain protocols, such as Solana, Polkadot, Avalanche, Cardano, and more recently, Ethereum 2.0, are now using proof of stake, over 99% more energy efficient than PoW models. In 2021, the World Economic Forum made a strong case for the potential of crypto and blockchain to lead us toward a much greener planet. According to the WEF, "while there are certainly challenges ahead, crypto and blockchain have the potential to lead us towards a much greener planet, with the discussion surrounding crypto and energy stimulating us to hasten our transition to clean energy sources while providing us with the tools to do so" (WEF, 2021).
The first and most common use of blockchain technology was to create a decentralized peer-to-peer electronic cash system, starting with Bitcoin. However, it rapidly evolved for many other use cases, such as general-purpose platforms that enable alternative crypto tokens, decentralized apps, enterprise and public data management systems, enhanced payment platforms, contract execution, supply chain management, and carbon tracking systems. (2022, Morningstar Sustainalytics).
1b. Overview of blockchain technology related to climate change
In recent years, blockchain technology has been gaining traction in many industries, and its potential for climate action has begun to be explored. As mentioned before, Blockchain-powered solutions can potentially revolutionize our approach to climate action – from emission tracking to renewable energy trading. The World Economic Forum has argued that the use of blockchain for climate action, “as more and more environmental data sets – such as weather patterns or internet of things (IoT) sensor readings – are fed onto blockchains, developers are beginning to produce a wide range of environmentally-conscious smart contract applications.” (WEF, 2021)
According to their analysis, there are three significant areas of opportunity. One of them lies in regenerative agriculture. Smart Contracts can interact with real-world data and make it possible to issue rewards so that people can protect the planet. The second area is to promote conscious consumption, using smart contracts to offset their carbon footprint, acquire carbon credits, and produce and trade solar electricity among peers through an exchange, using blockchain as a coordination mechanism. The third use is smart contract-based insurance products. Smart contracts can register “changing weather conditions, and farmers can take out a policy on their small crop of land, set predefined conditions (i.e. index-based insurance) for contract execution (such as a certain amount of rainfall), and then rely on oracles to monitor weather patterns. If oracle network reports a certain metric has been met, the farmer automatically gets a payout.”
To elaborate further, in terms of mitigation, blockchain can help reduce carbon emissions and mitigate climate change by enabling transparent tracking and verification of greenhouse gas emissions. This helps organizations and governments measure their carbon footprint accurately and take action to reduce it. For adaptation, blockchain can provide secure, decentralized storage of critical data and help facilitate faster, more efficient responses to climate-related disasters. This includes the tracking of relief efforts and the distribution of resources to affected communities. Regarding sustainable resource use, blockchain can help promote transparency and traceability in supply chains, enabling consumers to make informed choices about the products they purchase. This can incentivize companies to adopt more sustainable practices and reduce their environmental impact, such as by reducing waste and minimizing the use of non-renewable resources.
New capital from private and development sectors, such as Mercy Corps Ventures, Ripple, Flori Ventures, Breakthrough Energy Ventures, and Cerulean Ventures, is being targeted to invest in ventures and pilots using blockchain technology for climate impact. As a result of this research, it was found that most of the funds investing in the Web3 space focus on exploring a more comprehensive range of possibilities with this technology and are not focused on climate action.
This is likely to change in the future, with increasing attention being paid to the potential of blockchain to tackle climate change. The European Union has taken the lead in formally looking for ways to harness blockchain for climate action; for this purpose, in 2018, the European Blockchain Partnership was created to leverage “blockchain to create cross-border services for public administrations, businesses, citizens and their ecosystems to verify the information and make services trustworthy.” Since 2020, the European Blockchain Services Infrastructure (EBSI) has been deploying a peer-to-peer network of distributed nodes across Europe, supporting applications focused on selected use cases.
As part of this effort, they also agreed to “[promote] the development and adoption of blockchain technologies best suited to overcome the tragedy of the commons and incentivize actors to reduce their carbon footprint and consider the societal impact of their actions;” and “[develop] technical assistance and investment programs that support blockchain-based digital innovations that contribute to climate change mitigation and adaptation;” among others. Other countries, such as the United States, have taken similar steps to “unlock the incredible potential of a data-powered green economy.”
Simultaneously, many ecosystem enablers are trying to make sense of the space, promoting collaboration, research, financing pilots, and accelerating initiatives. For the purpose of this research, "ecosystem enabler" refers to organizations or groups that work to support the development and growth of a particular ecosystem, in this case, the blockchain and climate ecosystem. These ecosystem enablers play a vital role in the ecosystem by promoting collaboration, research, and financing initiatives and accelerating the development and adoption of new technologies and platforms.
Some of the most important players in this space are Open Earth Foundation, LOA Labs, Crypto Climate Accord, Blockchain for Social Impact, RefiDAO, Blockchain and Climate Institute, Gaia Lab, Regen Network, Global Blockchain Business Council, Protocol Labs, Climate Ledger Initiative, Hypha, EnergyWeb, and Lemonade Crypto Climate Coalition. Some of these are promoting interoperability of different protocols, providing funding, keeping a registry of the different platforms, identifying potential startups and accelerating them, and providing technological support.
1c. The network effect, blockchain, and climate impact areas
After conducting consultations with key stakeholders in the field and extensive desk research, we have identified 52 initiatives that are operating in emerging markets with a focus on climate action. These initiatives are categorized into eight different impact areas: Carbon Finance, Land Restoration, Ocean Conservation, Financial Inclusion, Climate Investment, Climate Insurance, and Agriculture. Carbon Finance has the highest representation, accounting for 41.2% of the identified initiatives.
The impact areas we refer to in this context are the various sectors or fields in which the identified initiatives operate and make a positive impact on climate action and emerging markets. For instance, initiatives operating in Carbon Finance focus on developing financial mechanisms that support the reduction of carbon emissions. Meanwhile, initiatives working in Land Restoration focus on restoring degraded land to improve soil health and reduce carbon emissions. This landscape analysis aims to provide insights into the different areas where blockchain technology is being leveraged to combat climate change and promote sustainability in emerging markets.
1d. Characterization of the state of this space
An initial assessment of the maturity levels of these initiatives was conducted using a ranking system in six levels: 1) Ideation phase (not yet launched); 2) Proof of Concept developed; 3) Launched Minimum Viable Product (MVP); 4) Early traction; 5) Second iteration and product fit; 6) Market fit and operational maturity.
After conducting interviews and consultations with sector experts and reviewing publicly available information, the analysis showed that the majority of the initiatives are currently in the MVP launching phase, followed by those with a proof of concept. Thirteen of the initiatives are either in the ideation phase or have early traction. This suggests that many initiatives are still in the early stages of development and have yet to achieve market fit and operational maturity.
1e. Blockchain Protocols in climate resilience
For the purpose of this report, the following is a list of blockchain protocols that focused on sustainability, impact tracking, and improving the efficiency and security of decentralized systems. The following list includes platforms that were highlighted during our desk research and consultations, with the understanding that there may be others. They are designed to be composable and interoperable, and many of them feature proof-of-stake mechanisms and carbon-offsetting initiatives to minimize their carbon footprint. These protocols aim to facilitate the development of decentralized applications and services that could include regenerative economy, social, and climate use cases. The list includes Solana, CELO, Cosmos, Menthol Protocol, Topl, Polkadot, Sustainable Bitcoin Protocol, and Algorand.
Algorand is a proof-of-stake blockchain cryptocurrency protocol. The platform's native cryptocurrency is called ALGO. Algorand's Layer-1 blockchain is capable of smart contracts and AVM, standard assets, atomic transfers, and rekeying. The platform is considered energy efficient, and it offsets its carbon footprint in partnership with ClimateTrade.
Sustainable Bitcoin Protocol
Sustainable Bitcoin Protocol (SBP) is a platform focused on promoting sustainability in the Bitcoin ecosystem. The platform's main goal is to encourage institutional and corporate adoption of Bitcoin through environmentally friendly practices. SBP is developing a market mechanism that rewards Bitcoin miners who use verified clean energy. Investors can opt to add "Proof of Sustainable Mining" to their BTC holdings through the platform. SBP aims to achieve its sustainability goals without affecting Bitcoin's fungibility.
Polkadot unites and secures a growing ecosystem of specialized blockchains called parachains. The platform enables cross-blockchain transfers of any type of data or asset, not just tokens. Apps and services on Polkadot can securely xcommunicate across chains, forming the basis for a interoperable decentralized web.
CELO's platform aims to build a regenerative economy through Blockchain. The use cases of their platform include saving (rewards and interest), paying (commerce), sending (remittances), earning (microwork), giving (humanitarian aid), and lending (lending protocol). CELO also supports a "creator economy" use case to support global creators with NFTs. The solutions hosted on their platform include Simplex DNA (data collection), Tokenized Carbon Credits (Toulcan, Flowcarbon), measurement, reporting and verification (MRV Collective), geospatial (Astral), and automated incentives for regenerative stewardship (Green World).
Cosmos is a blockchain-based ecosystem of interconnected apps and services aimed at enabling a decentralized future. One of its key features is a decentralized exchange for digital assets from across the Interchain, with low transaction fees and quick confirmation times. Cosmos also offers a security solution called Interchain Security, which involves securing various chains in exchange for additional staking rewards. It facilitates connections between different chains through its Route functionality, which establishes IBC connections with compatible chains and operates decentralized bridges with chains like Ethereum and Bitcoin. Additionally, Cosmos provides a secure custody solution for digital assets and multi-chain account management through its Hub service.
Menthol Protocol is a multi-chain decentralized sustainability protocol that will automatically offset carbon emissions user or dApp transactions with verified renewable energy and carbon credits from around the world. It supports dApps and allows dApp developers/users to be climate-positive in a decentralized and automated way. Menthol Protocol’s vision is to be the go-to multi-chain sustainability middleware for the Defi and NFT space.
Topl is a decentralized protocol designed to unlock the next wave of inclusive, sustainable innovation across supply chains and markets. The platform is built for impact tracking, tokenization, and transaction.
Solana is an open-source, public blockchain that supports open-source projects that generate public goods for the community. The platform allows other ecosystem participants to learn from and build on users' work. Solana ensures composability between ecosystem projects by maintaining a single global state as the network scales.
2. Blockchain for resilience in emerging markets contexts
2a. Why and what for in emerging markets
Blockchain technology can potentially address real-world problems faced by vulnerable populations in emerging markets. By understanding the pain points of different sectors and individuals, blockchain-based solutions can be developed to overcome these challenges. This has been reflected in the rapid adoption of cryptocurrency in emerging markets, as seen in the high proportion of the population owning crypto in countries such as the Philippines, Brazil, South Africa, and others. Such trends are highlighted by We Are Social 2020 and Chainalysis, which report the top countries in crypto ownership to be in emerging markets. Some argue, the decentralized nature of blockchain technology allows for greater autonomy and control for individuals and organizations, which is particularly appealing in regions with limited trust in centralized authorities.
2b. Why and what (use cases) for climate action?
After analyzing the 52 initiatives identified in the blockchain-climate space, it is evident that blockchain technology can be an effective tool in the climate adaptation and mitigation space. It enables the development of decentralized renewable energy systems and carbon markets. These initiatives have the potential to bring financial and environmental benefits to vulnerable communities in emerging markets while promoting sustainability and climate action on a global scale. By harnessing the potential of blockchain technology, it may be possible to address some of the world's most pressing environmental challenges, such as climate change, in a more efficient and impactful way.
Below is a list of specific use cases of this technology.
2c. Blockchain-based applications (e.g., tokens, DAOs, smart contracts, etc.)
Based on our analysis the most common blockchain-based applications in the climate and sustainability space, typically use a combination of tokens and smart contracts. For example, Carbon DAO, KlimaDAO, and GreenClimate Coin, use tokens and smart contracts to create a transparent and efficient system for tracking and verifying carbon offsets. These tokens represent a unit of value, such as a carbon credit, which can be traded on the blockchain platform. On the other hand, Smart contracts, such as those used by Basin and Climate DAO, can automatically enforce the terms of an agreement between parties, ensuring the validity of the carbon offset transfer. Through this approach, blockchain-based applications can incentivize eco-friendly behavior and promote sustainability, as exemplified by projects like Terra, which leverages blockchain to encourage reforestation and Carbon Risk Crop Insurance, which uses blockchain to help farmers protect their crops against climate risks.
2d. Barriers in the use of blockchain technology
The use of blockchain technology in the context of climate action is rapidly evolving, and new use cases are emerging all the time.
As part of this research, the main barriers that we have identified, and discussed with leaders in the space are a lack of awareness and understanding, limited access to technology, regulatory challenges, limited scalability, funding, and sustainability, and a lack of diversity and inclusivity.
Lack of awareness and understanding: Many people, especially in emerging markets, may not be aware of the potential benefits of blockchain-based solutions for climate action, making it difficult for initiatives to gain traction. According to a survey by the World Economic Forum, only 21% of respondents in emerging markets had heard of blockchain technology. As a result, initiatives may need to invest in education and outreach efforts to increase awareness and understanding of blockchain's potential for promoting climate resilience.
Limited access to technology: This can pose a challenge for some blockchain-based initiatives as they often require users to have access to devices like smartphones or computers. According to the International Telecommunication Union, nearly half of the world's population does not have access to the Internet, with even lower rates of access in many emerging markets. This digital divide can significantly limit the reach and effectiveness of blockchain-based initiatives. However, some projects, such as Kotani Pay, which runs on the CELO platform, have successfully addressed this challenge by developing innovative solutions such as enabling feature phones to access blockchain protocols. By adopting similar strategies and working with local organizations and governments to provide access to technology and training, blockchain-based initiatives can help to bridge the digital divide and ensure that everyone can benefit from this transformative technology.
Regulatory challenges: Based on a survey conducted as part of this research, leaders of Blockchain-based initiatives indicate facing regulatory challenges and uncertainty as one of the most important challenges (35.7% of respondents), which could impact their ability to operate.
Funding and sustainability: Because of the uncertainty in the market, blockchain-based initiatives may face challenges in securing funding and ensuring their long-term sustainability. According to a report by the World Economic Forum, many blockchain-based initiatives struggle to move beyond the pilot phase and secure long-term funding. Based on the survey we conducted, 21,4% of initiatives consider insufficient funding as a major barrier.
Lack of diversity and inclusivity: Initiatives may need to work to ensure that their solutions are accessible and inclusive to a diverse range of users, including women and indigenous communities. According to a report by the International Finance Corporation, women are underrepresented in the blockchain industry, accounting for only 4-6% of the workforce. In addition, initiatives may need to consider the needs and perspectives of indigenous communities, who may have unique knowledge and experiences related to climate resilience.
Interoperability: Interoperability refers to the ability of different blockchain networks to communicate and exchange information with each other seamlessly. Due to differences in blockchain protocols and network structures, some of them operate in silos, limiting their ability to work together and share data which leads to fragmentation and inefficiencies in the blockchain ecosystem. Developers are working on developing interoperability solutions such as cross-chain bridges and standardization of protocols that will enable blockchain platforms to communicate and interact with each other more effectively.
3. Illustrative impact use cases for emerging markets
The nine initiatives highlighted in this report were chosen based on desk research, consultations, and representation in the space. We aimed to select one initiative from each of the impact areas that we found to have more traction in emerging markets, including climate insurance, climate investment, ocean conservation, carbon finance, and land restoration. By showcasing these initiatives, we aim to illustrate how blockchain technology is being utilized to tackle climate change and promote sustainability in emerging markets.
These initiatives are illustrative of the potential of blockchain to address climate-related challenges in various sectors. By employing market-based mechanisms, scientific expertise, and decentralized platforms, these initiatives aim to incentivize sustainable land use, support small-scale farmers, promote ocean conservation, and mitigate climate risk.
Regen Network, The Open Forest Protocol, The Gold Standard, Greenstand
Nature Collectibles, Moonjelly DAO, Ethic Hub, Eco Labs
3a. Regen Network (Carbon Finance)
Regen Network is a blockchain-based platform that was founded in 2017 to promote regenerative agriculture and ecosystem restoration through the creation of a global ecological data commons. The platform incentivizes the collection, validation, and sharing of ecological data to facilitate the implementation of carbon sequestration projects, such as regenerative agriculture practices and reforestation.
It provides real-time tracking tools that allow for greater transparency and efficiency in the carbon offsets market. By partnering with local organizations and farmers, it focuses on promoting sustainable and regenerative land management practices in emerging markets, with a particular focus on improving the livelihoods of smallholder farmers. The platform enables the implementation of carbon sequestration projects and provides tools to track their impact, allowing project developers to quantify and certify their carbon credits, which can be sold on the carbon offset market.
Regen Network has two key components: the Regen Marketplace and the Regen Registry. The Regen Marketplace allows corporations to buy, trade, and retire digital carbon and ecological credits to meet their climate commitments. These nature-based solutions remove carbon, restore biodiversity, and reverse climate change. The Regen Ledger, which is part of the Regen Marketplace, mobilizes capital to fund on-the-ground ecological regeneration projects. The Regen Registry helps communities develop methodologies to verify ecological credits, including carbon and biodiversity.
To date, Regen Network has retired 588,488 carbon credits, with over $2 million in new credits issued in 2023, impacting over 15 million hectares of land across the globe. In addition to carbon credits, the platform can also be used to monitor and track water use in agriculture and other industries. It can monitor water consumption and quality in irrigation systems, and incentivize the adoption of water-efficient practices.
According to Crunchbase (January 2022), Regen Network has raised $14.5 million in funding, including a $5 million funding round in May 2021. Overall, Regen Network is an innovative platform that leverages blockchain technology to promote sustainable land management practices and facilitate the implementation of carbon sequestration projects, helping to address the urgent global challenge of climate change.
3b. The Gold Standard (Carbon Finance)
The Gold Standard is an initiative that aims to reduce greenhouse gas emissions and support sustainable development in emerging markets through the use of blockchain technology, market-based mechanisms, and scientific expertise. The initiative offers various services and support to help project developers and investors successfully participate in the carbon credits market. It is committed to quality and transparency, using a rigorous and scientific approach to verify and validate the emissions reductions achieved by its projects to ensure the carbon credits generated are of high quality.
The Gold Standard also focuses on digitizing carbon markets through its Open Collaboration working groups, which aim to help project developers understand Article 6 and its implications. The initiative is also exploring the tokenization of Gold Standard credits and has launched a consultation for its Digital Assets working group to plan for authorizing tokenization.
Furthermore, The Gold Standard is the implementation partner for IUCN's Nature Based Solutions standard, which includes blue carbon. It is looking at new ways to catalyze finance and certify impact toward marine activities through its Fund Requirements, which are applicable to funds like the Global Funds for Coral Reefs. The initiative is also piloting its Adaptation Requirements, which have been piloted within an urban environment in Pittsburgh, USA, and will soon be piloted at an ecotourism project in the Galapagos.
The Gold Standard has various initiatives and collaborations aimed at promoting sustainable development and reducing greenhouse gas emissions. The Open Collaboration working groups are focused on digitizing carbon markets, while the Digital Assets working group aims to authorize the tokenization of Gold Standard credits. The resources related to Article 6 help project developers better understand the requirements and implications of this regulation. The Gold Standard's partnership with IUCN's Nature Based Solutions standard is aimed at developing a collaborative certification scheme for nature-based solutions, including blue carbon. Lastly, the Fund Requirements seek to catalyze finance and certify impact towards marine activities and are currently being piloted. These resources reflect the Gold Standard's commitment to promoting sustainability through innovation, collaboration, and rigorous standards.
3c. Open Forest Protocol (previously known as the CarbonChain Protocol) - (Carbon Finance)
Open Forest Protocol (OFP) is scaling and financing regeneration through a comprehensive blockchain solution for forestation projects and the measurement, reporting, and verification (MRV) of nature-based carbon removal. OFP’s product uses mobile and web applications for field data uploads and a transparent, blockchain-based structure for the verification of environmental data. Their protocol creates a new market for small and medium-sized forestation projects to access carbon accreditation and generate valuable community co-benefits. The OPN token is used as the primary means of exchanging these credits and incentivizing conservation efforts. (Mercy Corps Ventures’ 2022 Impact Report)
A key feature of the OFP is its focus on community engagement. The platform is designed to be accessible and user-friendly, and it provides opportunities for communities to participate in conservation efforts and to benefit from the sale of carbon credits. This can help to build local support for conservation efforts and to ensure that the benefits of conservation are widely shared.
3d. Etherisc (Climate Insurance)
Etherisc is a blockchain-based platform that focuses on mitigating climate risk in emerging markets through a decentralized marketplace for buying and selling climate insurance. The platform leverages blockchain technology to enable farmers and other individuals who are exposed to weather-related risks to protect themselves against the impact of extreme weather events like droughts, floods, and storms.
The traditional insurance industry often struggles to provide coverage in emerging markets due to high costs associated with data collection and verification, as well as challenges in ensuring that claims are paid quickly and fairly. Etherisc's decentralized marketplace helps to increase access to insurance coverage in these markets by providing a transparent, fair, and efficient system for both insurance providers and clients. Mercy Corps Ventures conducted a pilot with Etherisc, that reached over 20,000 farmers in Kenya. The pilot was a combination of the use of mobile technology and human advisors to deliver personalized climate information and advice to farmers, with a focus on improving their ability to manage risks related to weather and climate variability. For this approach, user-centered design, effective communication, and partnerships were key.
The Etherisc platform has the potential to offer new and innovative insurance products that better serve the needs of people in emerging markets. For instance, the platform could enable farmers to receive insurance payments based on satellite data, providing a more accurate and up-to-date picture of crop yields. This could help to ensure that insurance payments are made quickly and fairly, and it could reduce the risk of fraud.
3e. Nature Collectibles: Non-fungible Token for Conservation (NFTCs) - (Climate Investment)
IUCN and Porini Foundation launched Nature Collectibles in 2022 at the APAC Conference in Kigali. Our goal is to generate recurrent and non-earmarked funding for PCAs that are interested in the Green List Standard. Nature Collectibles are unique and limited NFTCs that can be bought/ collected for the first time with 100%! going to the PCA but can then be resold on the secondary market (Investment), where 50% of the reselling price is going to the seller, 25% is going to the PCA, 15% is reserved for transaction fees and the remaining 10% are evenly split between IUCN (5%) and Porini (5%).
Nature Collectibles not only allow the buyer to be a part of the conservation action but also to learn about the species (education), to collect the 8 species in every collection (gamification), to showcase the tasks of a ranger (Conservation heroes) and to show about all activities, stories, and conservation issues of the PCA to a large audience. The estimated revenues until 2030 are 40 Million for PCAs and 5 Million for IUCN, see Pitch Deck in the annex for details. Nature Collectibles App is available for download for Apple, Samsung, and Huawei here; Next Step: Scale up in collaboration with T4N.
3f. Greenstand (Landscape restoration)
Greenstand is a non-profit organization that leverages blockchain technology and a mobile app called TreeTracker to track and incentivize reforestation efforts worldwide. They partner with local communities and organizations to implement reforestation projects that provide economic benefits and support biodiversity, while also offering carbon-offsetting services to businesses and individuals.
Through their platform, individuals and communities can receive financing for their projects based on satellite data that provides an accurate and up-to-date picture of their land-use practices. By promoting transparency and accountability, Greenstand aims to create a self-sustaining restoration platform that connects local communities with global citizens concerned about the environment and poverty alleviation.
Greenstand also enables individuals and communities to receive financing for their projects based on satellite data, which provides an accurate and up-to-date picture of their land-use practices. The platform promotes transparency and accountability by providing a financial incentive that could drive the growth of the reforestation and sustainable land use sector while creating economic opportunities for individuals and communities in the region.
3g. Moonjelly DAO (Ocean Conservation)
Moonjelly DAO is a decentralized autonomous organization focused on conservation that aims to connect conservation funders directly with conservation projects through blockchain technology. The centralization of conservation funding has resulted in insufficient direct connections between donors, scientists, and those working to protect and conserve nature. Moonjelly DAO aims to create a decentralized approach to conservation (DeCon) that incentivizes funders of all sizes, especially individuals, to take ownership in direct conservation action. The organization pools investments and donations in a treasury, with the members deciding how that money is allocated. Funding decisions by DAOs can be made fully transparent by recording decisions in the blockchain. The DAO model has the potential to complement and compete with traditional conservation organizations.
Another of the key use cases for Moonjelly is in the area of marine conservation. Using blockchain technology, the platform allows for the creation of immutable records of marine biodiversity and habitat data. This information can then be used by researchers, policymakers, and conservationists to better understand and protect marine ecosystems.
3h. ECO Labs (Climate Investment)
Eco Labs provides ecological assets to companies with sustainability goals by linking their investments to verified regenerative practices performed by smallholder farmers. An ecological asset is a verified claim that regenerative practices have occurred, leading to improvements in air, water, soil, biodiversity, equity, and carbon. With more than 84% of the world's 570 million farms being smallholdings, conventional carbon credit mechanisms exclude smallholder farmers due to high costs. Eco Labs aims to fund regeneration at any scale and build transparency and accountability into every stage of Eco Asset origination, where trust is put in the data and tech that collects it, not in the company.
ECO Labs also promotes collaboration between stakeholders. By connecting businesses, governments, and NGOs on a common platform, ECO Labs enables these stakeholders to work together to achieve common goals and overcome common challenges. This helps to ensure that environmental initiatives are implemented in a comprehensive and integrated manner, and it helps to achieve a greater impact than would be possible through individual efforts.
The ECO Labs platform also has the potential to provide a range of other benefits, such as improved data collection and analysis, increased access to financing for environmental initiatives, and greater public engagement in environmental issues.
3i. Ethic Hub (Climate Investment)
EthicHub connects small-scale farmers in emerging markets with investors around the world. EthicHub enables a more equitable and sustainable food system by empowering small-scale farmers and promoting impactful investment in them. Through EthicHub's platform, small-scale farmers can access affordable loans to finance their agricultural activities, improving their productivity and exporting their crops. The platform allows investors to directly fund these projects without intermediaries, using cryptocurrencies for the international transference of value. The loans are backed by a double collateral: the crops and EthicHub's own token, a liquid collateral that is staked by investors on behalf of the farmers. This collateral is stored on the blockchain, making the lending process transparent and secure. EthicHub is already operative in Mexico, Brazil, Honduras, Colombia, Peru, and Ecuador and is continuously looking to expand its scope to new markets and continents.
In addition to providing access to financing, EthicHub also helps farmers to access direct international markets (EEUU, Canada, China, UK, and Spain) increasing the farmers' profits by eliminating intermediaries. More than 300 tons of specialty coffee have been traded with an estimated 20% surplus benefit for the farmers.
In 2018, EthicHub launched its first pilot project in Chiapas, Mexico to provide loans to small-scale farmers for coffee production. Since then the platform has successfully funded more than 3 Million dollars in microloans to 600 families of smallholder farmers in Latam with less than 1% default rate, totally covered by its Crowd Collateral (Blended Finance).
Sources, Ethic Hub Brown Bag presentation with Blockchain for Resilience Working Group; Ethic Hub website:; "EthicHub's blockchain-based lending model connects farmers with finance" (Article on Devex):"EthicHub: The blockchain platform that connects investors with farmers" (Article on CryptoSlate).
4. Impact thesis in the blockchain for resilience space
Based on the analysis of these blockchain-based initiatives, the main impact thesis appears to be using blockchain technology to create decentralized solutions that promote environmental sustainability, social impact, and financial inclusion in emerging markets.
The initiatives analyzed in this report aim to improve the efficiency, transparency, and accountability of existing systems, such as carbon markets, forestry management, and agriculture, by leveraging blockchain's immutability, traceability, and smart contract functionalities. They also seek to empower small-scale farmers and communities by providing them with access to financial services, such as microloans, insurance, and crowdfunding, through decentralized platforms.
Overall, the initiatives aim to create regenerative economies that prioritize ecological integrity and social equity, while also promoting global climate action.
5. Inclusivity and gender lens
The gender gap in blockchain initiatives in emerging markets is a persistent and widely recognized issue. Women are often underrepresented in both the development and use of blockchain technology, resulting in missed opportunities for innovation and impact.
Access to education and training: Women in emerging markets are often limited in their access to education and training in science, technology, engineering, and mathematics (STEM) fields, which can impact their ability to enter the blockchain industry and participate in initiatives. A 2019 UNESCO report found that women represent only 29% of science R&D positions globally and are already 25% less likely than men to know how to leverage digital technology for basic uses.
Gender bias in the workplace: Women in emerging markets are often faced with gender bias and discrimination in the workplace, which can limit their opportunities for career advancement and participation in blockchain initiatives.
Lack of female representation: Women are underrepresented in leadership positions in the blockchain industry, which can limit the diversity of perspectives and ideas in the development of initiatives. A survey conducted by the consultancy firm PwC found that only 5% of executives in the blockchain industry are women.
Women as end-users: Women are often underrepresented as end-users of blockchain initiatives, which can result in initiatives that fail to meet their needs and address their challenges. A report by the World Economic Forum found that women only make up around 5% of cryptocurrency users worldwide.
Gender-sensitive data: When collecting data, it's important to ensure that data is gender-sensitive, meaning that it takes into account the different experiences, needs, and perspectives of women and men. This requires collecting data that is disaggregated by gender, as well as considering the different ways that women and men may experience resilience challenges.
To fully realize the potential of blockchain technology for climate action (or in any sector) it is imperative to address the gender gap in the use, development, and understanding of this technology, globally, but even more so in emerging markets. It could potentially bridge the gender gap in areas such as land and financial rights for women.
By using blockchain-based solutions, the ownership of land and property can be securely recorded, making it more difficult for land to be taken away from women or for them to be denied their rights. In addition, blockchain-based solutions can be used to create a more transparent and secure financial system, allowing women to access financial services more easily and enabling them to control their own finances. One example of this is the Bitland project in Ghana, which uses blockchain technology to securely register land titles and provide women with a way to assert their property rights. The project has been successful in empowering women and reducing disputes over land ownership.
For this to scale, it requires a commitment to understanding the different experiences and needs of women and men, a concerted effort to increase women's access to education and training in STEM fields, as well as promoting gender equality in the workplace. Moreover, it is important to encourage greater representation of women in leadership positions and as end-users of blockchain initiatives.
6. Conclusions: gaps and opportunities
The blockchain initiatives analyzed and surveyed for this report, primarily aim to test scalable and innovative technology with broad use cases while providing alternative livelihood options to underserved communities. However, lack of financing, product preparation, navigating the regulatory landscape, and developing new products are the primary challenges these initiatives encounter.
Impact/catalytic funding, venture capital, and Web 3 funding, including public asset-backed funding, quadratic funding, grants, and cryptocurrency donations, are the primary funding sources.
Successful implementation of blockchain for climate action is attributed to specific government or private sector policies/initiatives by 72% of survey respondents. Likewise, partnerships and collaborations with notable partners and collaborators have played a crucial role in executing these initiatives. Interestingly, 92% of the survey participants reported having 1 to 50 employees or collaborators contributing to their company or initiative, with 57% of all respondents making their product or initiative available globally.
Additionally, sharing some gaps, opportunities, and calls to action for interested stakeholders.
Adoption: Despite the potential benefits of blockchain initiatives in emerging markets, there are still significant gaps in terms of adoption and awareness. Many businesses, governments, and individuals in these markets are still unfamiliar with blockchain technology and its potential applications for environmental and social initiatives.
User experience: Many blockchain-based applications are still in their early stages and lack user-friendly interfaces, making it difficult for users to interact with the technology. For instance, managing private keys, navigating decentralized applications, and understanding transaction fees can be hard tasks for the average user.
Regulation: The lack of clear regulatory frameworks for blockchain initiatives can create uncertainty for stakeholders and hinder the growth and development of these initiatives.
Infrastructure: In many emerging markets, there are still significant gaps in the technological infrastructure necessary to support blockchain initiatives. This includes access to high-speed internet, data storage and processing capabilities, and the necessary expertise to develop and maintain blockchain-based platforms. In addition, the development of blockchain-based platforms requires specialized expertise in areas such as cryptography, programming, and network security, which may not be readily available in emerging markets.
Data quality: In order to be effective, blockchain initiatives need high-quality data to support their work. In emerging markets, the data collection and analysis infrastructure is often lacking, making it difficult to accurately track the progress of environmental initiatives and ensure that resources are being used effectively and efficiently.
Interoperability between protocols: Blockchain-based initiatives within the climate space rely on various protocols for data management, such as IoT, smart contracts, and data storage, which often operate in silos. This can create data gaps, inefficiencies, and difficulty in tracking and verifying emissions reduction activities. Interoperability enables data to flow seamlessly between protocols, allowing for a more comprehensive and accurate view of emissions reduction activities. The Energy Web Chain and Climate Chain Coalition are examples of projects addressing this challenge by promoting collaboration, standardization, and data sharing between protocols. The Energy Web Chain is being used to track renewable energy certificates, while the Climate Chain Coalition aims to facilitate interoperability between blockchain protocols and standardized methodologies for tracking emissions reductions.
Collaboration: Blockchain initiatives offer an opportunity for businesses, governments, and NGOs to collaborate and work together to achieve common environmental and social goals. This can help to ensure that initiatives are implemented in a comprehensive and integrated manner and achieve greater impact than would be possible through individual efforts.
Transparency: Blockchain technology enables the creation of secure and transparent records of environmental initiatives, helping to reduce the risk of corruption and mismanagement and build trust among stakeholders.
Access to financing: Through the use of blockchain-based platforms, businesses and organizations in emerging markets can access new sources of financing for environmental initiatives, including crowdfunding and impact investing.
Improved data collection and analysis: Using blockchain technology, stakeholders can collect and analyze data in real time, providing improved insights into the progress of environmental initiatives and helping to make data-driven decisions.
Public engagement: Blockchain initiatives also offer an opportunity to engage the public in environmental issues and encourage greater public involvement in the fight against climate change.
Calls to action:
Invest in blockchain literacy via capacity building in local governments, inclusion in university curricula in emerging markets, and integration of blockchain upskilling in venture launchers and accelerators.
Target audiences: Climate and development INGOs, innovation firms, startup ecosystems, academia.
Enhance the user experience by developing the climate-smart product innovation space via collaborative forums that engage climate, financial service, and blockchain product experts.
Target audiences: Product developers and managers, climate and financial service experts.
Stocktake regulatory barriers and opportunities in emerging markets and work with governments to incentivize blockchain industries.
Target audiences: NGOs and academia.
Create (or expand on) an open data commons that provides essential information for social impact blockchain initiatives, as well as early-stage blockchain startups that cannot afford to purchase data.
Target audiences: Development organizations; INGOs
Continue to innovate around initiatives that support interoperability and expand engagement to sectors beyond carbon markets and agriculture.
Target audiences: Existing blockchain experts and tech experts in other climate-vulnerable fields.
Annex I. Survey results
(Conducted in March-April 2023, responses from 14 global initiatives)
I. GENERAL OVERVIEW
The blockchain initiatives that were surveyed for this report highlighted that their primary focus is to test a scalable and innovative technology with broad use cases. In addition, these initiatives are also geared towards working with underserved communities and offering them alternative livelihood options.
They have also identified several challenges that they encounter, which include a lack of financing, product preparation and development, and navigating the regulatory landscape. Additionally, the need to develop new products poses a significant challenge for them.
When asked about their primary source of funding, the respondents mentioned impact/catalytic funding, venture capital, and Web 3 funding. This Web 3 funding includes public asset-backed funding, quadratic funding, grants, and cryptocurrency donations.
It's worth noting that 72% of the survey respondents attributed the successful implementation of blockchain for climate action in their respective regions to the presence of specific government or private sector policies/initiatives. Additionally, partnerships and collaborations have played a crucial role in the development and execution of these initiatives. Notable partners and collaborators include Mercy Corps Ventures' Crypto for Good Fund, Header SIF ecosystem partnership, EOS Blockchain, Toucan Protocol, Flowcarbon, Regen Network, blockchain developers, dMRV and ReFi, as well as TNFD, TCFD, NAC, Whitehouse, SEC ESG, Gitcoin Grants, Impact funds grants, and Google.org.
An interesting finding is that 92% of the survey participants reported having 1 to 50 employees or collaborators contributing to their company or initiative. Furthermore, 57% of all respondents have made their product or initiative available globally.
II. UNDERSTANDING THE TECHNOLOGY
During this section, we queried the participants about their organization's current use of blockchain technology. The responses showed that the majority depend on Ethereum, CELO, and Gnosis. Additionally, we delved further into the specific attributes of the blockchain technology they employ, such as decentralized ledgers, smart contracts, digital tokens, and DAOs.
As part of our inquiry, we also inquired about the presence of web3 communities in their organizations or initiatives, as well as the number of members they have. The findings revealed that 36% of the respondents reported having a web community with 1,000 or more members, followed by 22% who stated that they have over 15,000 members. The remaining percentage reported having between 1 and 1,000 members. Furthermore, we also inquired about the hosting platforms utilized for their web3 communities, with Discord, Telegram, and Twitter being among the most commonly mentioned.
III. UNDERSTANDING IMPACT
During this section, we sought to explore the benefits of utilizing blockchain technology that traditional methods could not achieve. The findings highlighted several advantages, including enhanced security, decentralization, transparency, increased efficiency, increased trust, immutable records, automated processes, and interoperability.
During this section, we inquired about the primary objective or impact area of their initiative, with the voluntary carbon market and ecosystem restoration being the most commonly cited responses. We also asked about the main climate-related challenge their initiative aims to address, with respondents highlighting issues such as lack of access to climate finance, climate change mitigation, and climate change adaptation.
It's worth noting that the majority of respondents stated that their initiatives have demonstrated some evidence of positive impact in underserved communities and emerging markets. Furthermore, these initiatives support local economies and businesses while seeking opportunities to include small and medium-sized enterprises, with potential for scalability.
Another critical aspect we explored was data measurement. To this end, we asked respondents if they use any specific framework to measure their impact, with 58% answering in the affirmative. These respondents reported using frameworks such as BasinStack, EDGE Index/Building Resilience, frameworks and impact sheets, Adaptive Agroforestry, and smallholder management, or their own frameworks. On the other hand, the remaining 42% stated that they do not use any framework and instead rely on Key Performance Indicators that are yet to be developed or are unfamiliar to them.
Regarding impact measurement, we also inquired if their funders require any measurable impact. The responses showed that 36% of the respondents affirmed that their funders do require measurable impact, 28% reported that their funders do not require it, and 36% stated that it does not apply to their situation.
As a final question, we asked the respondents to estimate the proportion of revenue from carbon sequestration that goes directly to the communities or territories. The most common response was uncertainty, as this varies based on project and location. The second most common answer was that more than 25% of the revenue from carbon sequestration goes directly to the communities or territories.
IV. PRODUCT AND TECHNOLOGY
In the "Products and Technology" section, we initiated the inquiry by asking about the significant impact of this technology and its expected trajectory. The respondents brought to attention the effects, including heightened compliance and transparency, augmented trust, and wider availability of alternative funding sources.
Subsequently, we inquired about the attributes of the technology most valued by its end-users, and they emphasized ease of use, decentralization, speed, and scalability.
Lastly, for this section, we inquired about the primary challenges or concerns of the respondents in adopting this technology within their respective company/organization. They emphasized regulatory and legal restrictions and insufficient funding as the major obstacles.
V. VISION AND GROWTH
As the final category, we investigated the topic of vision and growth. We began by inquiring about the primary drivers of long-term growth, to which investment financing and community building emerged as frequently mentioned factors.
Subsequently, we asked if the company was currently seeking investment funding, and you responded in the affirmative. Among the respondents, 50% stated that the company is seeking funding between 1.5 and 3 million euros, which will be predominantly allocated towards technological development and community expansion.
Annex II. Terminology
Blockchain: A decentralized, distributed digital ledger that allows for the secure and transparent recording of transactions. It is a chain of blocks that contains a record of all transactions made on the network, which are verified and validated by a network of nodes or validators.
Blockchain Protocol: A set of rules and standards that govern how transactions are verified and added to a blockchain. It outlines how nodes in a blockchain network communicate with each other and reach consensus on the state of the network.
Crypto: A term used to refer to cryptocurrencies, which are digital or virtual currencies that use cryptography for security. Cryptocurrencies are decentralized and operate independently of a central bank or government, relying on a network of validators or nodes to verify transactions and maintain the integrity of the network.
Cryptocurrency: A digital or virtual currency secured by cryptography, making it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation. (Investopedia, 2022)
DAOs: A decentralized autonomous organization (DAO) is an entity structure in which token holders participate in the management and decision-making of an entity. There is no central authority of a DAO; instead, power is distributed across stakeholders who collectively cast votes. All votes and activity through the DAO are posted on a blockchain, making all actions of users publicly viewable. (Investopedia, 2022)
Interoperability: The ability of different systems or networks to work together seamlessly, allowing data and assets to be transferred between them. In the context of blockchain, interoperability refers to the ability of different blockchains to communicate and exchange data or assets without intermediaries or additional fees.
Ledger 1: A digital record that keeps track of all transactions on a blockchain. Each block in the blockchain contains a cryptographic hash of the previous block, creating a chain of blocks that cannot be altered without invalidating all subsequent blocks.
Ledger 2: Another digital record that keeps track of transactions on a separate blockchain or network. It may be designed for a different purpose, have different rules, and use a different consensus mechanism than Ledger 1.
Non-fungible tokens (NFTs): Cryptographic assets on a blockchain with unique identification codes and metadata that distinguish them from each other. Unlike cryptocurrencies, they cannot be traded or exchanged at equivalency. (Investopedia, 2022)
Regenerative Agriculture: A farming approach that focuses on rebuilding soil health and biodiversity, promoting ecosystem services, and enhancing the resilience of agricultural systems. It involves practices such as crop rotation, cover cropping, conservation tillage, and the use of natural inputs, such as compost and animal manure, to improve soil health and fertility.
Regenerative Finance: A concept that aims to transform the financial system to be more sustainable and regenerative. It involves investing in projects and initiatives that have a positive impact on the environment, society, and the economy, and promoting financial systems that prioritize long-term sustainability over short-term profits.
Security Tokens: Represent rights of ownership, transfer of value, or promise of returns that are tokenized on a blockchain. It is intended to be treated as an investment instrument. (Investopedia, 2022)
Smart contracts: A self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein exist across a distributed, decentralized blockchain network. The code controls the execution, and transactions are trackable and irreversible. (Investopedia, 2022)
The Howey Test: The Howey Test is a legal test used in the United States to determine whether a transaction involving an investment in a particular asset constitutes an investment contract, which is a type of security that is subject to securities regulations. The Howey Test was established by the U.S. Supreme Court in 1946 in the case SEC v. W.J. Howey Co. Its based on the following criteria: 1) There must be an investment of money; 2) The investment must be in a common enterprise; 3) There must be an expectation of profits from the investment, 4) The profits must be derived from the efforts of a third party or promoter. If a transaction meets these criteria, it is considered an investment contract and is subject to securities regulations.
Utility Tokens: Also known as commodity tokens, these are digital assets that are used to access a product or service offered by a company or platform. Unlike security tokens, utility tokens do not represent an ownership stake or financial interest in an underlying asset or company, and their value is not tied to the performance of that asset or company. Instead, utility tokens are used to access a specific function or service within a platform or ecosystem, and their value is derived from the demand for that function or service.
Web3: The term Web3 refers to the next generation of the internet, which is being built on decentralized technologies such as blockchain. Web3 is often associated with the concept of the decentralized web, which aims to create a more open, transparent, and user-controlled internet.