How Web3 Technologies Can Help Advance Sustainability in 2023

Web3 technologies such as blockchain, artificial intelligence (AI), and the Internet of Things (IoT) have the potential to significantly improve sustainability and environmental conservation in the coming years. As both advancing technology and advancing sustainability are close to my heart, I’m eager to promote data privacy and security, increase transparency, and enable greater community engagement to help elevate sustainability in 2023.

Some ready ways I can image web3 technologies contributing to greater sustainability in the near future include:

Carbon Credits and Offsetting

Web3 technologies, such as smart contracts, can enable the creation and trading of carbon credits, which can incent individuals and organizations to reduce their carbon footprint.  This can help encourage more sustainable practices and reduce the impact of climate change. “Web3 is exciting for climate action,” writes Nour Ghantous for Energy Monitor. “At the forefront of this new era is regenerative finance—nicknamed ‘ReFi’ in Web3 communities—a new economic approach that combines the paradigm of Web3 technology with the urgent need for climate action.”

Plus, AI and IoT can be used to monitor and track carbon emissions in real-time, allowing for the creation of carbon offsetting systems. These systems could be used to offset the carbon emissions of individuals or organizations by investing in renewable energy projects or other sustainability initiatives.

Circular Economy

Circular economies seek to recirculate products and materials—helping to regenerate natural resources and greatly reducing waste and pollution.  Web3 technologies can also facilitate the creation of a circular economy by enabling the tracking and tracing of resources and materials throughout their lifecycle.  This helps reduce waste and promotes the reuse and recycling of resources.

“Waste generation is a significant challenge to solve in driving sustainability in the tech sector, so companies need to urgently address this important topic. Demand for technology is high and business leaders face pressures to continue updating their operations by introducing the latest hardware. However, if there is limited consideration for the circular lifecycle of equipment, this can have a negative impact on the environment,” note Praveen Shankar and Greg Sumner for ComputerWeekly.com. “Creating this circular economy and driving its importance across organizations and markets is also integral to reducing emissions.”

Community Engagement

“Sustainable Development Begins with Community Engagement,” claims Bridges to Prosperity, and SDNA Tech believes that by enabling trustless systems, opportunities for loyalty rewards, and monetizing communities, web3 technologies inherently build stronger customer relations, improve supply chains, and facilitate better data management.

I agree that web3 technologies can enable greater community engagement in sustainability initiatives. Beyond the examples above, blockchain-based platforms can allow individuals and communities to crowdfund and support sustainable projects, which not only strengthens their communities but advances sustainability.

Energy Efficiency and Decentralization

AI and the IoT can also be used to improve energy efficiency by enabling the optimization of energy use. Here, sensors and other IoT devices could be used to monitor energy usage in real-time and automatically adjust it to optimize efficiency—leading to significant energy savings and a reduction in carbon emissions.  

“Web3 has the potential to radically change energy as we know it, by starting with individual sectors first but ultimately transforming the entire energy market,” promotes an upcoming Polkadot crowdcast on Decentralized Solutions for the Energy Sector. Web3 technologies like blockchain can enable the creation of decentralized energy systems that allow individuals and communities to generate, store, and sell their own energy. This can help reduce reliance on fossil fuels and promote the use of renewable energy sources.

Smart Contracts

Smart contracts—self-executing contracts with the terms of the agreement written into code—can surely be used to automate sustainable practices.  For example, smart contracts can be used to automate payments for renewable energy generation, incentivizing companies to transition to using more sustainable energy sources.

“Smart contracts allow us to design globally accessible and fully automated incentive systems that can directly reward individuals, companies and governments for taking part in sustainable practices—such as regenerative agriculture, carbon offsets, crop insurance and more,” writes Adelyn Zhou for the World Economic Forum.  “At its core, the fight against climate change is going to require a massive shift in global consumption habits, and smart contracts are an incredible tool for incentivizing participation in global green initiatives.”

Supply Chain Traceability and Transparency

Blockchain can help create a more transparent and traceable supply chain. Such traceability can help to reduce waste and improve the sustainability of products and materials. For example, a company could use blockchain to track the source and movement of raw materials, ensuring that they are being sourced sustainably and ethically.  This enables consumers to make more informed choices about the products they buy, and encourages companies to adopt more sustainable practices.

“Blockchain will prove to be the ultimate answer to supply chain transparency,” explains Rhonda Dibachi for Forbes. For example, “Requiring that suppliers accept APIs is one way of gaining visibility in a world where no digital architecture currently exists for it. But there is no consensus on what a supply chain visibility-enabling software platform should look like.  To get beyond the self-contained bubble of the connected factory to the next step—a connected supply chain—you have to invite your suppliers in, and the blockchain offers a mechanism for the trust that will be required. That’s why blockchain will be the ultimate solution—for all sorts of business that requires trust.”

Sustainable Agriculture

IoT and AI can be used to improve the sustainability of agriculture by enabling precision farming. Such farming involves using sensors and other IoT devices to monitor and optimize various factors—such as irrigation and fertilization—in order to reduce waste and increase growth efficiency. This can lead to higher crop yields and a more sustainable food system.

Blockchains can also enable regenerative agriculture programs, for example, where "efforts to incentivize communities around the world to reduce their carbon footprints through more sustainable land-use practices, usually a combination of planting trees and conservation,” continues Adelyn Zhou for the World Economic Forum. “Smart contracts that can interact with real-world data make it possible to automatically issue rewards to people who steward these important tracts of land.”

Waste Management

One final point, web3 technologies can be used to improve waste management systems by enabling greater tracking and accountability. Similar to supply-chain traceability, a company could use blockchain to track the movement and disposal of waste, ensuring that it is being disposed of sustainably and in compliance with regulations.

For all these potential applications, I believe advancing technology—especially web3 technologies like blockchain and AI—are key to advancing sustainability. I am eager to discuss blockchains, data democratization, data security, sustainability, or web3 technologies if you’d like to message me on LinkedIn.