Decentralised Autonomous Organization: Integral Platform for Climate Initiatives
Devcon 3 · 26 Nov 2017 · 15:37
Anton Galenovich and Sergei Lonshakov present DAO IPCI, a decentralized autonomous organization that operates the Integral Platform for Climate Initiatives. The Devcon 3 talk covers an ecosystem built on smart contracts for carbon market instruments, including carbon credits and offsets, with registration, accounting and transaction data recorded on the blockchain.
Speakers
Topics
From Devcon 3, hosted by Ethereum Foundation.
Transcript
okay we're going to continue the previous topic about the environmental risk damages and climate change but from a bit different approach and I thanks to my colleagues that were speaking before us we can you know bypass the first slides but the difference of the approach is that we consider the environmental damages including climate change as a as in fact a damage which is caused by human economic activity in a
general sense so more specifically every deal transaction or contract has its collateral damage and when you buy a gas or air ticket your air travel it is there is a collateral damage to the environment to human health related to it and in fact in the nearest years it has already become a business custom to assess the damage related to any sort of economic activity transaction deals in terms of carbon dioxide equivalent it is
a very convenient thing to you know to evaluate environmental damage because it it reflects not only requirement change damage but also a combustion of fossil fuels out air pollution energy efficiency and that's why it's not only important but very convenient thing to quantify the environmental damage for example a few years ago there was a notorious study evaluating the damage related to indoor cannabis production in in the United States and the damage is as you can see the energy expenditures equal to five
billion dollars one percent of electricity consumed in the US and one kilogram of indoor cannabis production equals to four point six tonnes of co2 and the recommendation was to you know to legalize marijuana because outdoor production would eliminate the need for indoor production so that's the the basic scheme that we're talking about there are three principle participants of the of the model the seller the buyer
of goods and services and there is enough you know mitigation outs of mitigation outcome provider and the mitigation should be equal or greater than the collateral damage produced by the deal between buyer the seller and once these three participants agree on the amount of damage and on the price for mitigation outcome then in the ideal world you know they the problem would be settled and solved but in real world it's far more complicated because there's all there should be someone who evaluates assess what the collateral
damages and there always is a person or an entity who wants to be in charge and tell the buyer the seller and offset provider what should be set over shouldn't be settled what how they the damage should be assess and everything there there is a regulator who wants to be in charge and that's why you know the although this market for mitigation for example of climate change damages is is tremendous and it's you know at maturity it will be at least ten trillion dollars and but it is fragmented into pieces and numerous
barriers prevent from you know fungibility of the instruments there are dozens of climate mitigation programs and and new programs appear and units and instruments carbon units and I guess that one of the example was a previous presentation that a new very interesting program and the new carbon unit is proposed but basically they all operate with one in the same unit one in the same acid one ton of carbon dioxide emissions were one ton of carbon dioxide reduction absorption they are not
integrated and the regulator's really you know choose and select who can assess the who can assess the damage who can participate and the on the market and our initial target wasn't still is to to provide an opportunity to overcome the barriers external barriers between those dozens of markets and systems and registries and to internal barriers which do not let anyone who would want to participate really participate in it so that's why we've created a platform
that allows anyone or any existing or new mitigation program to launch its program blockchain and - you know cooperate integrate to the extent they want they might be fully independent or they want or they would want to merge the markets or they would want to have a you know unified talking a unit but any of those dozens of markets carbon programs or instruments carbon compliance units may enter this this blockchain and anyone can actually right now go and launch his
own mitigation problem so what we have achieved for the moment we have you know issued transferred the units from a conventional registry to the blockchain and performed pilot transactions and we have also performed a issues of environmental units of carbon credits by passing a conventional registry directed to blockchain which is not easy because in a real world well you still have to you know to have a very reliable auditor in our case it was KPMG to verify sure
that those reductions are real and comply with the rules so actually right now you can enter the the decentralized application to trade or to retire to to offset the carbon footprint or launch your own problem in fact as you know cryptocurrencies also have quite a significant carbon footprint and for example the Bitcoin network related the carbon emissions are equal to those of emissions of Cyprus and aetherium
Network are smaller emissions are smaller but still they equal to the no emissions of Moldova so it's pretty easy to imagine that there is a there might be a talking proposed to offset the exact amount of emissions related to one VidCon or to one easier we have a very vast you know development plans and developing the smart contracts and and everything but for the moment we might say that the the proposal of a high
quality assured environmental units is already provided at the platform now that we are working on the on the demand as I've described you know the problem is related with regulator registries opposition to a new technology that would basically deprive the regulators of much of their authority and would probably kill the traditional registries so that doesn't go easy and a very one very important thing is to you know in the strategic perspective to eliminate the need for really physical auditor verifiers participating in this process
and substituting it by Internet of Things algorithms plus a validation by the network and from this point I probably like Sergey to take over today my name is surgeon Shaka fine research team leader at arrow up and our hit scepter in eyepiece I project my part of presentation will be about how we can prepare Mars for Def Con 15 is you know Mars two days and not the good ways for humans it's a very cold place
and atmosphere is not friendly for our brass and if we resolve issue with logistics with space 6 or other space program next question will be can we make Mars a little bit comfortable for the confusing and it's will be surprise for you but Paris climate agreement can help us because if you try find some abstract or executive summary about Paris climate agreement you will find main tasks of Paris climate agreement main task is keeping a global temperature rise below 2 degrees Celsius and its mean the Paris climate agreement
is the first planetary terraforming experiment based on economical game my main work is research capability of using human to machine systems and last three years we working on robot economics concept we want to build first planetary spine chain with direct economical communication between humans and Nations but Paris agreement today is not human to machine system it's a human to human system with strong reputation requirements and this requirements for
me is ridiculous because we cannot do in planetary experiment with this requirement but if we shift Paris climate agreement on 0 Network Paris climate agreement can be human to machine system and look at the screen I will try to explain how it can be work we have manufacturers around the world who want to be involved in Paris climate agreement at the same time we build smart cities around the world and this smart cities have many types of different sensors which can
collect data about carbon footprint around manufacturers smart cities can send a no reports to serum network we can install additional package on a serial network validators additional package with carbon credit emission algorithm and after that is zero Network and issue carbon credits green humans can buy this credit and our collected funds can be spread between green economy manufacturers smart cities who
collect data and serial network validators who involved in this process and if it will be work we just can't change the reforming task from Paris climate agreement to prepare Mars to DEFCON filled with the same scheme is the same software so today we have a smart contract package for carbon credit market tested with real participants we build the sterilizer application for human to human communication and my team error team now try to build first carbon footprint sensors network visually
serial network validators base it on our air distributive in the next year we will show first algorithm for carbon credit issues based on a serial network and we want to build your service for reducing your carbon footprint only with carbon credit based on a serial network here you can find more information about project and if you interesting in error distributes if you can find more information error dot life website so keep on the way to DEFCON on Mars and we will try to prepare and do it much more comfortable thank you
[Applause] [Music]