The World Economic Forum (WEF) has recently released a report that charts a path to improve Web3 sustainability data standards. The report titled, “Building a Sustainable Path for Web3: Towards Data Standards for Blockchain and Other Distributed Technologies”, is part of the WEF’s ongoing efforts to promote sustainable blockchain and distributed ledger technologies (DLT).
The report highlights the need for more standardized, reliable, and trustworthy data to contribute towards sustainable development. The WEF states that without such data, it is impossible to create a sustainable Web3 ecosystem, and that the lack of transparent and reliable data hinders investor confidence, which can lead to market instability.
According to the report, there are five key factors that must be addressed to improve the sustainability of Web3 data standards. These are:
1. Data Availability and Accessibility: The report states that Web3 data should be readily available and accessible to all stakeholders, including businesses, investors, and regulators.
2. Data Quality and Reliability: The report stresses the importance of data quality and reliability, stating that data should be transparent, accurate, and timely. The WEF suggests that the use of smart contracts can help ensure data reliability by automating data reporting and validation.
3. Data Privacy: The WEF highlights the importance of data privacy in Web3, and recommends that data privacy standards be incorporated into the development of Web3 protocols.
4. Data Interoperability: The report stresses the importance of data interoperability, stating that different systems should be able to communicate with each other to ensure that data can be shared and analyzed across different platforms and systems.
5. Data Governance: The WEF recommends the development of standardized data governance frameworks for Web3 to ensure that data is managed in a responsible and sustainable manner.
The WEF report also identifies several areas where blockchain and DLT can have a positive impact on sustainable development. These include:
1. Supply Chain Management: Blockchain can help ensure transparency and traceability throughout the supply chain, which can contribute to sustainable development by reducing waste, improving efficiency, and promoting ethical practices.
2. Decentralized Energy Management: DLT can enable the development of decentralized energy grids, which can promote the use of renewable energy and reduce reliance on fossil fuels.
3. Financial Inclusion: Blockchain can make financial services more accessible to underserved communities, which can promote financial inclusion and reduce poverty.
4. Sustainable Land Management: Blockchain can be used to record land ownership and promote sustainable land use practices, which can help reduce deforestation and other environmentally destructive practices.
The WEF report concludes that the development of sustainable Web3 data standards is crucial to the long-term success of blockchain and DLT. The report recommends that stakeholders across the Web3 ecosystem work together to develop and implement these standards, with a focus on addressing the five key factors identified in the report.
Overall, the WEF report is an important contribution to the ongoing discussions surrounding sustainable blockchain and DLT. By highlighting the key factors that need to be addressed, and identifying areas where blockchain and DLT can have a positive impact on sustainable development, the report provides a framework for building a more sustainable Web3 ecosystem. It is now up to stakeholders across the Web3 ecosystem to work together to develop and implement these standards to ensure the long-term success of blockchain and DLT.
A new Insight Report by the Crypto Impact and Sustainability Accelerator (CISA) has emphasized the role that blockchain technology could play in a sustainable power system, and how the crypto industry can continue to reduce its emissions. Written by the World Economic Forum’s Evin Cheikosman and Catherine Mulligan, the report also draws on insights from leading consulting firms and academic experts. The report outlines efforts to determine blockchain energy consumption, a tricky and controversial topic, and the need for the industry to develop comprehensive blockchain emissions guidelines. Principles of transparency and verifiability central to the ethos of Web3 are a natural fit for emissions reporting, and Web3 projects have the potential to make sustainability claims more rigorous, timely and accurate. However, the industry must do a better job balancing its vision of a verifiably sustainable future with its sometimes shakier net zero claims of the present. As it works to leapfrog traditional reporting, Web3 can also embrace the rigor that existing standards have to offer. By purchasing renewable energy, blockchains can provide additional revenue streams for wind and solar projects. This can accelerate the adoption of renewable energy globally.
