Web3. Artificial Intelligence (AI). Sustainability. New technology can address old problems in unique ways that were not possible before. As a (slight) tech nerd, I am always inspired to see innovative companies and individuals using new technologies like blockchain and AI for good.

It’s not obvious at first glance how Web3 and AI can help the environment. In fact, the common narrative is that they hurt it: Bitcoin critics are quick to mention the use of network power that arises from proof-of-work mining, and AI is known to be one of the heaviest undertakings in computing with a lot of power. huge data centers dedicated just to refining a model. While these are semi-valid criticisms, they miss the big picture. These technologies play critical roles in how organizations operate more efficiently and can shift human behavior toward more sustainable patterns.

Web3 and the impact of sustainability

Blockchain is well known for its use in supply chains, and you can do it in ways that help sustainability. As an example, the world’s largest meatpacking group, JBS, recently developed a blockchain platform to track its livestock supply chain to combat deforestation. (Deforestation is done to provide more grazing space for animals, with the consequent negative effect on biodiversity and air quality.)

Walmart uses IBM’s blockchain-based Food Trust to track its products at every step of the supply chain, both to minimize operating costs and to work toward sustainability goals by reducing energy loss and waste. That same tool is also used by Nestlé, Tyson Foods, Carrefour and Raw Seafoods, among others.

The application of blockchain to the problems faced by supply chain managers has some advantages with respect to sustainability:

• Efficiency: Businesses can now complete financial transactions without third parties, reduce the time between order and payment processing, and further integrate the logistics pipeline. All of this means less wasted material and energy.
• Transparency: In today’s complex supply chains, it has become difficult for customers and end users to verify the provenance and environmental footprint of a product. By ensuring records cannot be changed, blockchain makes supply chains more transparent, helping to accurately report sustainability practices. Sustainability begins with responsibility.

carbon chips

Multiple startups are focused on creating “carbon tokens,” or blockchain-based tokens, which represent a stake in a sustainability project or digitized carbon credits that organizations can purchase to offset their emissions. One prominent example is Flowcarbon, a startup backed by venture capital firm Andreessen Horowitz that is working on a carbon credit crypto token designed to make carbon credits more liquid, easy for consumers to understand, and with transparent prices.

Other projects like Toucan, JustCarbon, and Moss.Earth have similar models. Companies with large holdings in carbon negative assets like Bitcoin buy these tokens to offset their environmental impact. For example, River Digital Asset Management recently launched “the world’s first carbon-neutral crypto asset fund.”

Of course, these companies face some major problems. They are still tied to the DeFi ecosystem and can easily be used for speculation and greenwashing. Backlash against the idea of ​​carbon offsets versus actually reducing carbon emissions is growing, as evidenced by a UN report released at the recent Cop27 climate conference. Startups that toss “blockchain” and “sustainability” into their pitches also tend to receive more VC funding in times of economic growth, but it’s important that these initiatives measurably move the needle.

Where the AI ​​comes in

AI is already a mature technology used across industries to automate processes, identify patterns, and outsource decisions. Yes, there are exciting new branches, such as generative AI, which creates original adaptations of text, images, or sound that it received as training data, but at its core, machine learning (ML) and AI models are already being used in all verticals in ways focused on sustainability. Here are some highlights from the past few years:

Single.Earth combines Web3 and AI to combat deforestation

Estonia-based Single.Earth takes a unique approach to sustainability: It generates “merit” tokens that owners can earn every time they store 100 kg (about 220 pounds) of carbon in their forests. You can then buy merit tokens for speculation and as a direct investment to tackle deforestation. In principle, the system is intended to offer investments that are directly linked to actual ecosystems and, at the same time, incentivize landowners, who can use the healthy ecosystem as a source of income, to care for their land. Single.Earth incorporates satellite data, geospatial engineering, machine learning, and drones to monitor these forests and make sure the owners are upholding their duties. So far, Single.Earth has less than 11 million hectares of land to its credit and 55 team members.

Web3, AI converge in the name of sustainability

As we continue to think about responsible AI development, we must ensure clean data sources to train our models. AI will not reach its full potential by training on data sets littered with AI-generated, falsified, or manipulated inputs. Blockchain’s immutability and transparency helps address this issue and provides an unprecedented level of “data integrity” and confirmation of data provenance. Especially on sensitive data like that generated on sustainability, we don’t want black box models or centralized data pools training our core AI systems.

In essence, both Web3 and AI further enable data and its capacity for positive change. As both develop, we will see more touchpoints between them, such as transferring AI-processed data to chains, applying AI to existing chain data, or performing AI directly on blockchain network nodes at the edge. These basic combinations of technology will see more and more applications in sustainability.

Which companies are the largest providers of AI and hyperautomation? Click here for the Acceleration Economy AI/Hyperautomation Top 10 Shortlist, curated by our expert team of professional analysts.

Looking for real-world information on hyperautomation? Subscribe to the Hyperautomation channel: