Blockchain for Good: Global Projects Supporting Sustainable Development

This article is from “Blockchains & Sustainable Development Report” by JacquesAndré Fines Schlumberger Ph.D.. The report is licensed under the CC BY-NC-ND 4.0 license.

Introduction

Blockchain technology has evolved significantly since Bitcoin’s inception in 2009, expanding its applications beyond finance to various sectors, including digital identity, environmental sustainability, and global development. This versatile technology aligns with the United Nations’ Sustainable Development Goals (SDGs), particularly in promoting education and poverty alleviation.

This article examines the distribution and impact of blockchain projects worldwide, highlighting their contributions to sustainable development. By exploring the intersection of blockchain with SDGs, we reveal how this technology supports resilient infrastructure, inclusive industrialization, and innovation, showcasing its transformative potential in addressing global challenges.

Number of Active Projects by June 30, 2022

“The distribution of projects among the fourteen categories of the directory shows that, not surprisingly, “Peer-to-Peer Electronic Cash systems and Programmable Money” is the category that contains the most projects. Indeed, Bitcoin, implemented in 2009, is first and foremost a peer-to-peer electronic money system, open to all, without prior authorization or censorship.

The themes of digital identity and property registry have 71 active blockchain initiatives, which also testifies to the growing interest in decentralized identity. Contrary to popular belief, blockchains do not automatically lead to high energy expenditure and 68 projects are directly involved in the fight against climate change and environmental preservation, as most of these projects are built on blockchains with low environmental impact.”

Geographic Distribution of Active Projects by June 30, 2022

“The geographic distribution of project headquarters shows a clear dominance by the United States. The next nine countries are Australia, Singapore, Canada, the Netherlands, France, Germany, Switzerland and the UK. It should be noted, however, that this map does not show the countries in which these blockchain initiatives are deployed.

It appears that blockchain initiatives have emerged all over the world, and that the rate of adoption of crypto-assets by the general public is growing fastest in Africa, Latin America and Southeast Asia.

In addition, it should also be noted that this map does not show the projects that are not headquartered in any country, due to the decentralized nature of the initiative, such as some Decentralized Autonomous Organizations (DAOs).”

SDGs Distribution Among Active Projects

“The Sustainable Development Goal (SDG) with the most occurrences is SDG 1 “no poverty”. The reason this goal comes first is that several subcategories of “Peer-to-Peer Electronic Money and Programmable Money” have a direct link with Sustainable Development Goal 1. These include “peer-to-peer transactions and payments”, “financial inclusion”, “participatory finance” and “basic income”. It is important to note that the number of occurrences of Sustainable Development Goal 1 is also due to the presence of projects that do not primarily aim to fight poverty, but which de facto contribute to that goal.

The Sustainable Development Goal second-most addressed by active projects is SDG 9: “Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation”. As its title indicates, this SDG covers a broad spectrum: sustainable and accessible infrastructure, socio-economically viable industrialization, access to financial services for all enterprises, modernization and sustainability of industrial sectors, innovation, research and development, support for developing countries, diversification and value addition, and finally, access to information and communication technologies.”

Evolution of Number of Projects Created Per Year

“The development of initiatives based on blockchains, whether or not they are related to the Sustainable Development Goals, seems to be linked to the development of second-generation blockchains, with Ethereum launching in 2015 and peaking at the beginning of 2018, coinciding with the fall in the price of bitcoin, whose valuation went from €16,000 to €6,000 in a few months.

In addition, the evolution of the number of projects resembles the five “hype cycles”,¹ proposed by the firm Gartner: “Launch of Technology, Peak of Exaggerated Expectations, Chasm of Disillusionment, Slope of Enlightenment, Plateau of Productivity”. This “hype cycle” reflects the evolution of interest in a new technology, not its adoption.”

Distribution by Organization Type

“Of the 692 active projects in the directory, 65% are led by startups. DAOs account for only 4% of active projects, while 10% are led by companies. Finally, NGOs and non-profit projects account for 8% of said projects. Three-quarters of the blockchain projects in pursuit of one or more of the Sustainable Development Goals are therefore carried by the private sector.”

Distribution of Projects by Blockchain Type

“Of the 692 projects listed in the directory, 266 are based on public blockchains and 57 claim to implement a private blockchain. It is interesting to note 366 projects claim to implement a blockchain without specifying which one or what type of blockchain is implemented. While it is likely that these projects are using a private blockchain whose governance is in the hands of authenticated and previously accredited partners, it is not possible to verify this information. This is a testament to the excitement surrounding certain blockchain projects that are in name only.

Among the active projects in the directory whose blockchain is public, Ethereum is the most used blockchain, followed by Bitcoin, then Cardano. The Ethereum blockchain, because of its precedence over the others, confirms its power of attraction to IT developers and developers working on blockchain projects with social and environmental impact. Moreover, Ethereum is the most versatile public blockchain: it is possible to code smart contracts, develop decentralized applications as well as build DAOs, while using Ether as a payment method.”²

Conclusion

Blockchain technology has demonstrated its potential to contribute significantly to sustainable development goals across various sectors. The global distribution and diversity of blockchain projects reflect the growing interest in leveraging this technology for social, economic, and environmental benefits. By integrating blockchain solutions with the United Nations' SDGs, we can address global challenges more effectively and promote a more inclusive and sustainable future. As the technology continues to evolve, it will be crucial to ensure that these projects remain aligned with the core principles of sustainability and equitable development, maximizing their positive impact on society.

References

¹ “Blockchain Expectations and Realities From 2017 To 2021 And Beyond”, Jorge Ordovás, August 30, 2021, https://business.blogthinkbig.com/blockchain-expectations-and-realities-from-2017-to-2021-and-beyond/

² “Blockchains & Sustainable Development Report”, JacquesAndré Fines Schlumberger Ph.D., Association de loi 1901 Blockchain for Good - France, blockchainforgood.fr, September 2022.