The GBA Banking and Finance working group has undertaken two critical tasks for the GBA.
Firstly, following the successful publication and reception of the GBA Blockchain Maturity Model (BMM), the Banking and Finance Group, in concert with other working groups, will be developing the BMM Supplement, which will outline the distinct requirements against which blockchain solutions within the financial services can be additionally assessed. Topics will include:
Capital Markets Debt and Equity – Primary and Secondary Markets (Exchanges and OTC)
Central Banking, Fractional Reserve Accounting, Commercial Lending, National Banks
Pension Funds, Insurance Companies, and Foundations
Retail Banking (Accounts, Payments, Personal Lending)
Structured Products
Secondly, the group is developing a GBA Consulting Handbook describing the various sectors of the banking, financial, and capital markets industry, with the goal of providing training for those sectors and outlining the potential for blockchain solutions.
If you are interested in contributing or want to listen in for educational purposes, please log into the GBA website and join the Banking and Working Group. All of the call details are listed for the calls every Wednesday.
“There is no waste in nature. When a leaf falls from a tree, it feeds the forest. For billions of years, natural systems have regenerated themselves. Waste is a human invention.”
For years, the ‘take-make-waste’ linear economy has been heavily extractive, resource-intensive, and produces greenhouse gases (GHGs) contributing to the climate crisis. Companies extract materials from the earth, apply energy and labour to manufacture a product, and sell it to an end-user, who then discards it when it no longer serves its purpose. This linear approach relies on fossil fuels and does not environmentally manage resources such as land, water, and minerals for the long-term, emits GHGs that are causing a global climate crisis.”
Solution:The Circular & Regenerative Economy
Circular systems operate as closed loops and enable the continuous use and reuse of resources. The use of raw materials and energy from non-renewable sources is minimized and eliminated. Hence, a circular economy decouples economic growth from resource consumption. [3]
According to The Ellen MacArthur Foundation, the circular economy is based on three pillars: [4][5]
Design out waste and pollution: What if waste and pollution were not created in the first place?
All negative impacts of economic activities that harm human health and natural systems, such as greenhouse gas emissions, the release of hazardous substances, and the air, soil and water pollution, are detected and eliminated in a circular economy. [5]
Keep products and materials in use: What if we could build an economy that extends the life cycle of products?
A circular economy emphasizes solutions that preserve value. Thus, when a product reaches the end of its life, its materials are kept in the economy whenever possible. These materials are then used productively, again and again, creating added value. [7] This also means eco-design for durability, reuse, remanufacture and recycling to keep products, components and materials in the economic cycle.
Circular systems effectively use biobased materials by promoting many different uses circulating between the economy and natural systems. [4] [5] The circular economy involves sharing, leasing, reusing, repairing, refurbishing, and recycling existing materials and products for as long as possible. One example is the reuse of waste as valuable raw materials in production processes. [7]
Regenerate natural systems: What if we could protect the environment and improve it?
The circular economy is designed from the outset to restore and regenerate. It avoids using non-renewable resources and preserves or enhances renewable resources, for example, by returning valuable nutrients to the soil, promoting regeneration or by using renewable energy instead of relying on fossil fuels.
From a “take-produce-consume-dispose” pattern to a restorative and regenerative economy
The circular economy supports natural processes and leaves more room for nature to thrive. [1] The Ellen MacArthur Foundation has developed the “butterfly diagram” that aims to get to the essence of the circular economy.
By turning our economy from a linear to a circular economy, the focus shifts from extraction to regenerating natural systems. Instead of continually destroying nature, we build natural capital. We adopt agricultural practices that allow nature to rebuild soils, increase biodiversity, and return biological materials to the earth. Most of these materials are lost after use, and croplands are depleted of nutrients. [1]
To find a balance within the earth’s bio capacity, the Regenerative Economy is an economic system designed to regenerate its resources rather than deplete and consume them. [8] 5 principles guide it: [9]
Resource use must be as minimal as possible. Everything must be recoverable and valued.
Independence of material extraction is a tendency in the Regenerative Economy.
A regenerative economy is a local economy that promotes interaction between actors. This interaction improves an area’s resilience and ability to respond to shocks because the more dynamic an area is with local supply and valuation solutions, the more expertise is available.
A regenerative economy leads to cooperation rather than competition. Collaboration among actors fosters a horizontal collective intelligence where everyone is considered at their actual value. This dynamic enables better dissemination of information, and horizontal collective intelligence provides better adaptation to a complex and unstable environment.
The regenerative economy aims to promote life instead of destroying it through developing products or services that sequester carbon, regenerate soils and biodiversity, and improve air and water quality.
The Regenerative Economy also draws inspiration from nature-based solutions from living ecosystems. Restoring living soils in massive regeneration would reduce our emissions globally, sequester carbon, regenerate biodiversity, and improve yields. [9] Still, more than 100 billion tons of materials enter the world economy each year in our global economy, and only 8.6% is circular. [10] But why, when there are clear opportunities?
Why should we strive for a Circular & Regenerative Economy?
The circular economy focuses on improving sustainability and social responsibility in addition to economic growth.[11] It has many environmental and system-wide benefits. The World Resources Institute (WRI) has outlined five opportunities of a circular economy: [12]
Better use of finite resources.
Better use of natural resources such as air, forests, soil, metals, minerals, and water is essential to the circular economy [12]. In the last fifty years, global material consumption has tripled, from 26.7 billion tons in 1970 to 92.0 billion tons in 2017, and that’s not all: the International Resource Panel (IRP) predicts that material consumption will reach 170 to 184 billion tons by 2050, doubling in three decades. [10] Interestingly, natural resource extraction and processing are responsible for more than 90 per cent of global biodiversity loss and water stress impacts, as well as about half of global greenhouse gas emissions. [13]
Reduce emissions.
Although the discourse to address the climate crisis has been focusing on the shift to renewable energy, there has not been much discussion on the 45% of greenhouse gas emissions that occur in the production of cars, clothing, food and other products. [14] To meet climate goals, we also need to focus on GHG emissions. The Ellen MacArthur Foundation paper indicates that applying circular economy strategies could help reduce emissions by at least 40% by 2050, bringing emissions from these sectors 45% closer to their net zero emissions targets. [14]
Protect human health and biodiversity.
Electronic waste (e-waste) is mismanaged and either end up in the natural environment or is disposed of through open burning, landfills, or low-quality recycling. Appropriate use of natural resources (e.g., protecting soil and water) and better handling of products at the end of their life are necessary. Designing products that can be used longer will reduce this kind of waste. Furthermore, creating appropriate collection and processing systems protects workers and the environment from hazardous materials.
Boost economies.
Circular economy business models could minimize material inputs into and outflows from the economic system and play an essential role in leveraging private sector resources and capabilities to transition to a more sustainable economic development. [15] Accenture Strategy’s research presented in the Waste to Wealth book indicates that the circular economy could generate an additional $4.5 trillion in economic output by 2030. [16] Circular economy business models that take a different approach will help decouple economic growth and natural resource consumption while increasing competitiveness.
Create more and better jobs.
Six million jobs, viz., recycling, repair, rental, and re-manufacturing, can be created by shifting to a circular economy, substituting the traditional “extract, make, use, and dispose of” economic model. [17]
Therefore, the circular economy contributes to achieving global climate goals. [5] Businesses would benefit significantly by aligning their operations with the circular economy principles. These benefits include creating new profit opportunities, lower costs due to a reduced need for new materials, and closer relationships with customers. [5] The transition to a circular economy could bring benefits such as reducing environmental impact, improving the security of raw material supply chains, increasing competitiveness, promoting innovation, spurring economic growth, and creating jobs.
Achieving a Circular & Regenerative Economy
Transitioning from a linear to a circular economy requires systemic solutions. Business models, product and service design, legislation, accounting practices, urban planning, agricultural practices, material extraction, manufacturing, and more currently have undesirable characteristics from a circular perspective. However, we cannot change just one element of the existing system and expect the necessary transformation. Instead, we should learn to understand how complex systems work because understanding is the first step to creating better solutions. [5]
Critical connections between the Circular & Regenerative Economy and Blockchain
While policy instruments aim to promote good practices and legislation to ensure compliance, the global scale of our production, distribution, and consumption networks makes our complex waste management systems vulnerable to mismanagement and potential corruption. There is a lack of knowledge about what happens to the waste and the potential for them to end up in landfills or incinerators, probably releasing toxic substances into the environment. Designing appropriate mechanisms integrating waste management systems into a global circular economy and ensuring transparency and accountability in monitoring, reporting, and enforcement mechanisms are critical. [3]
Blockchain would be an efficient way to build a more transparent system connecting all the players in a product’s value chain and improving performance and communication along supply chains. By linking producers, distributors, and consumers, we can leverage blockchain and ensure accountability for the management of ‘waste’. Growing trust in the system will facilitate the transition to a circular economy, reduce waste, and lead to a more sustainable future. [3]
Blockchain technology can also contribute to the circular economy by helping to reduce transaction costs, ensuring the protection of human rights, reducing carbon footprint [11], and measuring impact.
Without knowing what a product is made of, it cannot be recycled; without knowing how it was used, the potential for reuse is also unknown. Critical to optimal reuse and recycling is that information about a product’s components and how it was used is shared among the various participants in the supply chain and, after the sale, with the owners. Information is essential for a circular economy. Because of its transparency and traceability, blockchain can be collectively verified, ideal for processes involving multiple organizations. [18]
Other blockchain features that could find application in the circular economy include smart contracts and tokenization. The latter could encourage participants to share data or take some other beneficial action in exchange for a blockchain-specific currency [18] or incentivize sustainable behaviour, while the first offers diverse opportunities for supply chain management.
However, there are many barriers to overcome. A challenge noted by some researchers is that a company that tries to get suppliers and competitors to share information could be viewed with suspicion. In addition, there is a reluctance to create wholly transparent supply chains, which could require companies to divulge sensitive information. [18] Nonetheless, this is a change that needs to happen.
Every opportunity Blockchain offers increases the value of organizations, their products and services. It is important to remember that the technology can go beyond the method of tracking products and making information and the supply chain more transparent. [19] Blockchain creates a whole new way of exchanging value and interconnecting each value exchange, and in the end, the Circular Economy is all about value – economic, environmental, and social.
To discuss circular and regenerative economies with the authors or know more about how blockchain can contribute to sustainable economic growth join us at the iconic Mayflower hotel, this May from 25th -27th. Details below:
[11] Upadhyay, A.; Mukhuty, S.; Kumar, V.; Kazancoglu, Y. 2021. Blockchain technology and the circular economy: Implications for sustainability and social responsibility. Journal of Cleaner Production, Volume 293. doi: https://doi.org/10.1016/j.jclepro.2021.126130.
[15] Galvão, G.; Homrich, A.; Geissdoerfer, M.; Evans, S.; Ferrer, P.; Carvalho, M. (2020). Towards a value stream perspective of circular business models. Resources, Conservation and Recycling, Volume 162. doi: https://doi.org/10.1016/j.resconrec.2020.105060
[19] Ellen MacArthur Foundation (2018). What Is a Blockchain & How Can it Help a Circular Economy? Jessi Baker Discusses | Summit 2018. Retrieved from: <https://www.youtube.com/watch?v=eyH2PFNpxXQ>
Written By
Priya Guliani, UK President GBA and Lead Sustainable Environmental Stewardship
The GBA Voting Working Group has drafted a submission to the US Election Assistance Commission (EAC) to extend the scope of the Voluntary Voting Systems Guideline (VVSG) to include Remote Ballot Delivery, Marking, and Return (RBDMR). The current VVSG does not support the certification of blockchain-based election systems because it does not allow for internet-connected voting.
The GBA Voting Working Groups has drafted the VVSG RBDMRS Supplement v04. The group requests that people that are knowledgeable and interested in the subject review the document and provide their feedback and comments below.
The Government Tickets for GBA’s Conference are now FREE!
I’ve got some good news. I wanted to let you know that all government employees, who are GBA members, can now get their TICKETS to the Blockchain & Sustainable Economic Growth conference, held at the Mayflower Hotel in Washington, DC, for free. This is a $1399 value! GBA Membership for government employees is also free.
Cryptocurrency, energy, governance, sustainability, and the environment are all on the table. Network with government officials from around the globe and learn from those who are actually deploying blockchain solutions.
Climate risks have been a growing concern not only for civil society and non-governmental organizations but also for governments and private institutions. This shift in focus has been influenced by the awareness and attention that the financial impact of climate risks and material financial risks has gained on the corporate agenda. And it is not by chance. The latest IPCC reports were clear: we need to act quickly and together on multiple fronts.
Now, 7 years after the Paris Agreement, organizations are still figuring out their strategies to achieve the primary goal of reaching a 1.5 °C warming limit and ensuring a global average temperature increase of no more than 2°C above pre-industrial levels. The journey has been challenging and governments and enterprises are not meeting expectations.
How should we reach Decarbonization & NetZero?
To address climate change, actions need to be developed in three steps: mitigation, adaptation, and compensation. To build climate resilience, governments and organizations need to find ways to achieve NetZero.
The first step is understanding the emissions of a determined organization or city through a Greenhouse Gasses (GHGs) Inventory that will quantify emissions and be the basis of future GHG reduction targets.
Mitigation actions focus on analyzing emissions sources and activities to identify which processes can be changed to reduce GHG emissions. With this analysis, organizations can set Science-Based Targets, which can and should be monitored to effectively guide the reduction of emissions. Energy efficiency solutions are a key enabler to reducing and avoiding further emissions, for example.
When organizations have already taken action to reduce GHG emissions, but operations, processes, and dynamics still emit GHGs, the next step is compensation. It is possible to offset emissions that are unavoidable through the carbon market, which has been gaining attention in recent years. The carbon market is where supply and demand for carbon meet: projects that generate carbon credits (such as renewable energy projects) are connected to organizations interested in buying the credits to compensate for their residual emissions. But, the purchase of carbon credits to offset emissions is not an alternative to undertaking the hard work of decarbonization.
With all the changes that come with the climate crisis, adaptation and resilience are no longer merely suggestions for the success of businesses or the well-being of citizens, but an urgent necessity. Companies and municipalities have to develop strategies to adapt to all climate risks, both physical and transitional, to increase resilience in their ecosystemic dynamics. The adaptation phase seeks to reduce the negative effects of the climate risks and explore opportunities. Therefore, practices such as scenario analysis, risk mapping, physical adaptation measures, financial impact assessments, territorial adaptation actions, and target monitoring are crucial. The climate lens needs to be incorporated into all dynamics of institutions’ risk management, governance, and all planning initiatives.
While there is a concern for change, transformation is necessary and, if well-governed, can generate positive impacts. All the efforts to build resilience to climate change can generate opportunities for businesses, such as access to new markets, resource efficiency and cost savings, the adoption and use of low-emission energy sources, the development of new products and services, and building resilience into supply chains. [2]
Initiatives have to focus on removing and balancing GHGs released into the atmosphere. For a company to reach NetZero, it has to encourage and materialize action throughout its network of stakeholders. It is crucial that the company is aware of its Scope 3 emissions from its supply and value chains, as they account for a large portion of the organization’s total emissions since the sources of Scope 3 emissions come from activities performed but not controlled by the organization in its supply chain, such as business travels and employee commuting, upstream and downstream transportation, purchased services, and materials, etc. According to CDP, Scope 3 emissions are more than 11 times higher compared to operational emissions. [15]
How does blockchain impact climate change?
“In climate policymaking, transparent measurement, reporting, and verification of climate action is important. It enables policymakers to understand where they need to incentivize greenhouse gas emission reductions while being confident that they comply with the requirements set in its standards.”
Massamba Thioye, a co-Chair of the Climate Chain Coalition, and Manager, Regulatory Framework Implementation sub-division, Mitigation division at UN Climate Change [3]
The key features of blockchain technology, such as an immutable transaction audit trail, cheap and borderless value transfer, and automated contract execution [4], offer multiple opportunities and potential applications to accelerate global and regional actions towards achieving the targets set by the Paris Agreement and the UN Sustainable Development Goals (SDGs):
Improvement of the transparency, accountability, and traceability of GHG emissions
Blockchain can serve as a transparency mechanism that allows companies and governments to provide more accurate, reliable, standardized, and readily available data on carbon emissions – which today can be incomplete and unreliable -, encouraging emissions reductions and monitoring of targets. [5] Accurate tracking and reporting of emissions reduction, which can be facilitated by blockchain technology [3], could be used by national governments as a tool to monitor the progress made in implementing the Nationally Determined Contributions (NDCs) under the Paris Agreement [3], and as a way to monitor how nations are taking action to reduce their impact on the climate. [6]
The decentralized blockchainapproach enables the tracking and reporting of the reductions of GHG emissions throughout the supply chain – including manufacturers, suppliers, distributors, and consumers [5] -, involving and enabling the participation of different stakeholders. Blockchain also provides a decentralized infrastructure that can enable new business models in climate finance and clean energy generation. [4]
Blockchain can be used through smart contracts to better calculate, track and report carbon footprint reduction throughout value chains. It can provide instant authentication, real-time data verification, and clear data logs. [5] Smart contracts also enable the design of globally accessible and automated incentive systems that can directly reward individuals, businesses, and governments for engaging in sustainable practices – such as regenerative agriculture, carbon offsets, and crop insurance, among others. In addition, smart contract tools can ultimately incentivize the change in global consumption habits. [7]
Climate finance, clean energy, and carbon market
Blockchain technology provides the ability to improve climate finance flows and investments that contribute to tackling climate change. Moreover, if carbon markets are scaled up, companies and industries will be able to transition to low-carbon technologies. [6] As for the carbon market, blockchain can be used to improve carbon asset transaction systems and carbon emission tradings. [3]
Blockchain technology could also facilitate clean energy trading by enabling the development of peer-to-peer platforms for renewable energy trading. [3] This could in turn accelerate the adoption of renewable energy sources. As these kinds of energies are decentralized, such as wind and solar, there is a need for new forms of energy markets, which can be created through blockchain technologies. [6]
“As countries, regions, cities, and businesses work to rapidly implement the Paris Climate Change Agreement, they need to make use of all innovative and cutting-edge technologies available. Blockchain could contribute to greater stakeholder involvement, transparency, and engagement and help bring trust and further innovative solutions in the fight against climate change, leading to enhanced climate actions.”
Alexandre Gellert Paris, Associate Programme Officer at UNFCCC [3]
In their contribution to the IPCC’s Sixth Assessment Report, Working Group III highlights that even though digitalization can reduce emissions and contribute to climate change mitigation, it can also have negative externalities. As a result of digitalization, the demand for goods and services would increase due to the use of digital devices, which in turn can generate more electronic waste, negative impacts on labor markets, enlarge the existing digital inequality etc. [8] [9] One of the main topics of discussion of negative impacts associated with blockchain technology is the consequent huge energy consumption associated with it, which can nevertheless be addressed through low-energy solutions. [6] [3] The use of digital technology will be an effective decarbonisation strategy only if appropriately governed. [8] [9]
There are initiatives and players in the blockchain industry that strive to connect the Paris Agreement and climate change on the blockchain, some wanting to ensure that any energy consumed by their activities is entirely carbon-free. One year ago, the Energy Web Foundation, Rocky Mountain Institute, and the Alliance for Innovative Regulations, launched the Crypto Climate Accord (CCA), intending to decarbonize the global crypto industry by prioritizing climate stewardship and supporting the entire crypto industry’s transition to net-zero greenhouse gas emissions by 2040. [10] Additionally, there is The Blockchain for Climate Foundation [11] and the Blockchain & Climate Institute (BCI). [12] The first has been focusing on building a pathway for countries to operationalize Article 6 of the Paris Agreement [11], while the second is a progressive think tank focusing on using emerging technologies for climate and sustainability. [12]
Furthermore, it is important to recognize the role that clean technology startups play in this process: By developing blockchain platforms that meet the needs of all stakeholders, including business, government, and citizens, they facilitate collective action to counter climate change. [5]
For illustration, ClimateTrade [13] connects companies willing to offset their carbon emissions to a large number of verified environmental projects. Another example is Nori, a marketplace for carbon removal that promotes regenerative agriculture projects that relate to soil carbon sequestration, and has a Carbon Removal Cryptocurrency, the NORI, that has the goal to provide a tradable market commodity while avoiding the double-counting and fraud present in some carbon markets. [14]
In short, for blockchain to thrive as a solution for climate action, digital infrastructure will need to be improved and access to the internet and smart devices expanded in an affordable way. International dialogue has to be expanded with the involvement of experts and scientists, who need to deepen their studies about the applicabilities, consequences, and solutions driven by blockchain – given the need for more technical research -, and policymakers, who will also have to adjust regulations. [6]
[6] UN News (2021). Sustainability solution or climate calamity? The dangers and promise of cryptocurrency technology. Retrieved from: <https://news.un.org/en/story/2021/06/1094362>
[9] IPCC (2022). Climate Change 2022: Working Group III contribution to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change. Mitigation of Climate Change: Chapter 16: Innovation, technology development and transfer. Retrieved from: <https://report.ipcc.ch/ar6wg3/pdf/IPCC_AR6_WGIII_FinalDraft_Chapter16.pdf>
Colorado Governor’s Office of Information Technology – Blockchain Architect
Colorado Governor’s Office of Information Technology – Digital Transformation Director
Department of Commerce – Director
Department of Commerce – International Trade Advisor
Department of Commerce – Sr. International Trade Specialist
Embassy of Argentina – Head of Investments
Embassy of Argentina – Secretary
Embassy of Argentina – Trade Analyst
Embassy of Canada – Minister-Counsellor
Embassy of Ecuador – Head of Political Affairs
Embassy of El Salvador – Ambassador
Embassy of El Salvador – Minister Counselor
Embassy of India – Economic Minister
Embassy of India – Principal Secretary Information Technology and Communications Department
Embassy of India – Third Secretary (Economic)
Embassy of Malta – Ambassador
Embassy of Philippines – First Secretary and Consul
Embassy of Philippines Trade & Investment Center – Trade & Investment Analyst
Embassy of Saudi Arabia – Director of Corporate Business Accounting Ministry of National Guard
Embassy of Singapore – Director, Data Analytics Ministry of Health
Embassy of Slovenia – Blockchain Technologies Coordinator Ministry of Economic Development and Technology
Embassy of The Czech Republic – Deputy Chief of Mission
Embassy of The Czech Republic – Political Counsellor
Embassy of The Kingdom of Bahrain – Ambassador
Embassy of The Kingdom of Bahrain – Chief of Staff
Embassy of The Kingdom of Belgium – Senior Economic Advisor
European Union Intellectual Property Office – Project Specialist
Federal Housing Finance Agency (FHFA) – Principal Financial Analyst
Federal Maritime Commission (FMC) – Director of Ocean Transportation Intermediaries
Florida Office of Financial Regulation – Financial Control Analyst
Information Technology, Electronics & Communication (ITE&C) Department, Government of Telangana, India – Director of Emerging Technologies & Officer on Special Duty (OSD)
Ketchum – Senior Media Relations Specialist
Maryland Department of Information Technology – Deputy Secretary
Massachusetts House of Representatives – Representative
National Oceanic and Atmospheric Administration (NOAA) – International Relations Specialist
NIH Office of the Director, Office of Research facilities – Electrical Engineer/Project Manager
Office of the Mayor Eric Adams of New York City – Innovation & Emerging Markets, Office of the Mayor of New York
PNC Bank –
Prince Georges Co Public Schools – Special Education Chair
U.S. Citizenship and Immigration Services (USCIS) – Division Chief – Systems Delivery Division
U.S. Defense Health Agency – Clinical Informatics Specialty Leader, Assistant Professor of Radiology, USUHS
U.S. Department of Veterans Affairs – VA Cloud Data Security
U.S. Federal Deposit Insurance Corporation – Senior Business Analyst
U.S. Government Services Admin. AI Center of Excellence – Director of Federal AI Implementations
U.S. Government Services Administration – Program Lead, Shared Services – Office of Shared Solutions and Program Improvement
U.S. House Committee on Agriculture – Professional Staff Member
U.S. House Energy & Commerce Committee – Professional Staff Member
U.S. House Energy & Commerce Committee – Professional Staff Member
U.S. House of Representatives (Anna Eshoo) – Legislative Director
U.S. House of Representatives (Bill Foster) – Legislative Aide
U.S. House of Representatives (Darren Soto) – Communications Director
U.S. House of Representatives (Darren Soto) – Deputy Legislative Director
U.S. House of Representatives (Darren Soto) – Legislative Correspondent/Future Forum Press Assistant
U.S. House of Representatives (Darren Soto) – Legislative Director
U.S. House of Representatives (Darren Soto) – Office Manager
U.S. House of Representatives (David Schweikert) – Legislative Assistant
U.S. House of Representatives (Lisa Blunt-Rochester) – Legislative Director
U.S. House of Representatives (Mark Pocan) – Legislative Director
U.S. House of Representatives (Raja Krishnamoorthi) – Chief of Staff
U.S. House of Representatives (Ro Khanna) – Chief of Staff
U.S. House of Representatives (Robin Kelly) – Legislative Director
U.S. House of Representatives (Ted Budd) – Senior Policy Advisor
U.S. House of Representatives (Tom Emmer) – Fintech Fellow
U.S. House of Representatives (Tom Emmer) – Policy Analyst
U.S. House of Representatives (Yvette Clarke) – Chief of Staff
U.S. National Credit Union Administration – Vice Chairman
U.S. National Science Foundation – Chief Acquisition Officer
U.S. National Science Foundation – Chief Architect
U.S. National Science Foundation – Deputy CFO and Division Director for Financial Mgt
U.S. Senate – Policy Advisor for Senator Sinema
U.S. Senate Banking Committee – Professional Staff Member
U.S. Social Security Administration – Clams Technical Expert
U.S. Veterans Affairs Enterprise Acquisition Systems Service – Director
U.S. Veterans Affairs National Artificial Intelligence Institute – Chief of Staff
U.S. Veterans Affairs National Artificial Intelligence Institute – Clinical Informaticist
U.S. Veterans Affairs National Artificial Intelligence Institute – Program Specialist
U.S. Veterans Affairs National Artificial Intelligence Institute – Senior Research/Policy Adviser
Miami-Dade County, Florida Cryptocurrency Commission – Commissioner
Miami-Dade County, Florida Cryptocurrency Commission – Chief of Staff
North Dakota House of Representatives – Representative
North Dakota House of Representatives – Representative
North Dakota House of Representatives – Representative
North Dakota State Government – Chief Information Officer
Office of the Mayor Eric Adams of New York City – Innovation & Emerging Markets, Office of the Mayor of New York
PA House of Representatives – Caucus Director, House Emerging Technologies Caucus
PA House of Representatives – State Representative, Chairman, House Emerging Technologies Caucus
Prince Georges County Public Schools – Special Education Chair
Utah County, UT – County Commissioner
Washington, DC Office of the Attorney General (OAG) – CISO
Embassy of the Republic of Korea – First Secretary Economic Section
Rhode Island House of Representatives – Representative
UK Department for International Trade – Vice-Consul, International Trade & Investment Officer
If you are a start-up or enterprise that’s interested in building a blockchain network, Hyperledger Fabric can be a great option. Fabric is a modular platform that allows you to build your own blockchain network, and it’s been used by companies like IBM and Airbus. In this blog post, we’ll walk you through how to set up your own Fabric network. We’ll also show you how to use Fabric for prototyping and development. So if you’re ready to start building your own blockchain network, keep reading!
Blockchain is gaining immense popularity and it is not just cryptos and cryptocurrency that forms the core of blockchain but it goes far beyond that. Major industries, including the finance, logistics and transport, supply chain, insurance, healthcare and others are taking steps to adopt the innovative blockchain solutions to bring in greater efficiency and transparency. The innumerable benefits of the blockchain technology have only made enterprises realize the huge potential the technology can have for their business and hence they are fast adopting it.
Before we walk you through the steps with the help of which you can build your own blockchain application with Hyperledger fabric, it is essential to understand some major components, know the basics of server management and also know more about the framework.
What is Hyperledger Fabric?
Hyperledger Fabric is an open-source blockchain framework for running the private, permissioned, blockchain network and runs on Unix-based operating systems. It was initially contributed by IBM and Digital Asset Holdings, LLC. Fabric serves as a base for building applications or solutions with a modular architecture. This private blockchain network is hosted by the Linux Foundation and members can join this blockchain network only on invitation and it cannot be joined by everyone. This permissioned blockchain network implies that the identity and role of each participant is known to other members of the network. Also, every transaction carried out in the blockchain network is verified, validated, authenticated and also monitored. It is possible to operate the Fabric Networks on-premises or also choose the blockchain as a maintenance platform to sustain the registry infrastructure.
Networks that are created between several parties are capable of exchanging sensitive data with each other. Hyperledger Fabric blockchain-related tasks are unusable if the entire blockchain is not integrated with multiple parties. However, it is challenging to identify, due to its flexibility and strength.
Features of Hyperledger Fabric
The Fabric blockchain framework was created with the purpose of creating trust between one or more actors, organizations, or corporate entities. Well-known traits constituting the crucial element of the Fabric network are as follows:
Privacy:
Each and every system on the network needs to be identified by the Fabric.Given that it is a permissioned blockchain network, prospective participants of a Hyperledger –fabric empowered network are required to sign up and group themselves through a Membership Service Provider (MSP). It is a permissioned network with permissioned membership. The most significant feature that the Hyperledger fabric possesses is the aspect of ensuring privacy for the data stored. It is this relevant feature that makes it such an appealing option for building blockchain applications for many businesses across industries. Moreover, the fabric requires no permission for any component of the blockchain and the requirement for the permission is the decision of the designer of the blockchain network.
Membership services
One of the key features of Hyperledger Fabric is its ability to enable membership services for organizations. This means that companies can join the network as either a full node or light client, depending on their needs and requirements. Membership services are also used to enforce access control to the network and its resources.
Channels:
Hyperledger open-source framework allows users the ability to divide the framework into different “channels”, thereby encouraging network members to establish a separate set of transactions that are not accessible and seen by the larger networks. Channels allow participants in a network to securely transact with each other without having to broadcast every transaction to all members of the network. This is useful in bringing down the amount of data which is required to be made public and to be seen by other participants and improves performance. Hence, it allows users and transaction holders to hide sensitive data from the larger network participants with no requirement for access or need for involvement.
Scalability:
Hyperledger fabric is highly known for the appealing feature of maintaining a scalable network for which the business enterprises often choose to use this network for building blockchain apps. This significant trait of the open-source framework helps businesses to rapidly scale the number of nodes taking part in the network as with any kind of implementation. Meanwhile, the system holds the capability to process larger chunks of data even with fewer dedicated resources, thereby allowing users to have the best of the benefits of the fabric. It is possible to build a blockchain network with only a limited set of nodes and it can be scalable on requirement.
Modularity:
Hyperledger fabric architecture lets users add individual elements and implement them at different times. It is observed that several of the components are discretionary and can be completely done away with or can be added later on without actually impacting the functionality.
Companies can use this function to set what the need is and what they don t need. A few important things for consideration for modular architecture or plug-and-play include how membership services are crucial for different identities, how consensus mechanism is developed, appropriate ledger storage, specialized access APIs, and integrating connecting code.
How Does Hyperledger Fabric Work?
The Hyperledger Fabric project is an open source framework designed to improve and develop cross-industry blockchain applications. Fabric is a modular platform allowing for the development of blockchain applications and solutions with a range of governance models and smart contract templates. The Hyperledger Fabric repository is hosted on GitHub.
One of the advantages of Hyperledger Fabric is its ability to support multiple blockchain networks, or in a single deployment. This allows different parts of an organization, or different organizations, to have their own private blockchains that can interoperate with each other. In addition, Hyperledger Fabric supports both permissioned and permissionless deployments, giving organizations the flexibility to choose the appropriate level of security for their needs.
Hyperledger Fabric has been used in a number of production deployments, including we.trade- an e-commerce platform built by nine European banks.The need for data integrity has never been greater than it is now. With the increasing number of regulations mandating that all participants be kept up-to date on certain fields, fabric’s ability to maintain this information becomes more important than ever before so these rules can effectively chase off any possible participant who may try and compete against them by not following suit with others within an industry or sector about which there was no previous agreement beforehand.
Carrying out effective private transactions or contracts with conventional blockchain networks can be a problem for major organizations. For this reason, Hyperledger Fabric was created as a modular, scalable, and safe foundation for installing industrial blockchain solutions.
An open-source, blockchain-branded engine is Hyperledger Fabric. Its key features are invaluable for a business to use blockchain for core applications. The use of a verifiable ID is a primary necessity for carrying out a private industrial network.
What Makes Hyperledger Fabric Apt For Enterprises?
Open-Source
Open-source blockchain framework Hyperledger Fabric is hosted on a Linux-based platform. In addition, there are active developers involved. It is developed to be readily available to the public. Anyone can access and change the team’s source code. It is open for complete community and developer access. Every part of the conceptual code is open to the public. Anyone may improve upon the program, and thanks a lot are offered for related participation.
Private & Confidential
A copy of the full ledger is received by every node in the public blockchain network. So, confidentiality becomes more prevalent as there’s a lot more of everyone’s business on the blockchain network. In addition, the identities and role of the participating members are unverified or unknown.
Given that it is public, anyone can join blockchain. In case of Hyperledger Fabric, the identity of all members is verified, along with the ledger may only be accessed by verified members. This attribute is most effective in sectors in which confidential data is called for, such as banking and insurance.
Provides option to Control Access
Hyperledger Fabric has a digital-to-physical blockchain network. It has specific access controls for specific users. It has its own order-message authorization process and provides additional administration security.
This is helpful if a portion of the members would like to limit accessibility and control the information. It helps only a limited number of participants involved in the transaction to see the data and information. Thus the feature of controlled access is helpful in situations where two competitors are on the same network.
The framework setup gathers and stores information. Here, one competitor may guard its data from being revealed to another competitor.
Chaincode Functionality
The Chaincode function allows you to implement smart contracts with your system’s business rules in a container technology-based hosting model. It uses Pluggable Components, making it easy to adapt to the complexities inherent throughout the economy. This is useful for certain types of transactions, such as changing ownership of an asset.
Real-World Value and Performance
The Hyperledger Fabric distributed ledger is a private network, so there is no need for individuals on the network to verify the transactions that take place there. This aids in speeding up the transactions and also improves overall performance.
How Can You Create Applications Using Hyperledger Fabric?
Hyperledger fabric is a blockchain framework implementation, designed to provide the foundation for developing applications or solutions with an architecture that’s modular in nature. There are several ways you can create your own application using this powerful network technology – here are just a few ways!
One approach is to use the command-line interface (CLI) to generate modules, chains, and organizations. Another option is to use a graphical user interface (GUI) such as Hyperledger Composer. Composer provides an easy way to create smart contracts and blockchain networks without having to use the CLI.
A third option is to use one of the pre-built applications that are available on the Hyperledger Fabric GitHub repository. These applications include sample code, scripts, and dockerfiles that make it easy to get started with Hyperledger Fabric.
Your imaginative choices for creating applications with the Hyperledger Fabric can take place through application of a template, outsourcing, or by creating it in-house. Here’s a brief overview of these three ways. .
Templates
The Hyperledger template is available for use with the Hyperledger blockchain, smart contracts, and apps. A host of professional programmers created it to make the use of blockchain easier and more widely available, so that enterprises would only need small financial and manpower resources to begin.
It may be possible to compare Hyperledger templates with website templates, or their services, in order to understand them better. WordPress enables users to develop any type of website in no more than 30 minutes without any programming experience, web design, or layout skills.
It is not simple to create applications for Hyperledger based on templates. In 5 to 10 years, the templates folder will contain solutions for everything ranging from simple electronic payment transactions to use as a system for voting.
Outsourcing
Operations conducted with the assistance of third-party contractors are referred to as outsourcing. In case of building blockchain applications, it can refer to the process of creating applications, deployments, and tests. You are most likely to find very qualified and highly experienced computer programmers who will be happy to handle the process with precision, and as a result, you need a good deal of money to hire them and won’t wish to engage in your own development.
There are a lot of companies who are developing Hyperledger blockchain applications, but very few competent people in them. Because blockchain is a new innovation, only limited developers worldwide are highly skilled at it.
What to look for when looking for a developer company:
After you’ve completed a list of projects, search for a team that has experience in the type of work that you need to do. Sometimes software products are created and tested for quality, functionality, and utility. Get in touch with the development companies of interest to you and the companies you have already worked with.
If you’re not sure how to structure the working schedule, communication, data exchange, or payment terms, you should either review the many local developers or hire a developer who already works in the specified field.
Hiring your own group of technical developers will allow you to create your own blockchain applications. This means you can fully control the development of this project; however, you’ll need to find coding resources and a programmer workspace.
To save time as well as money, it is sometimes better to hire experts in building blockchain applications who are readily available for your remote job. Whenever you choose this option, however, it is also important to set up the development process well so that one expert can oversee multiple tasks.
Zeeve for building blockchain applications using Hyperledger Fabric
Enterprises and startups can use Zeeve to build, deploy and manage nodes. Zeeve is a Blockchain as Service (BaaS) platform that helps enterprises and startups build, deploy & manage reliable decentralized apps. It has been designed to be cloud agnostic so it can easily interoperate with other networks running on different technologies such as Etheruem and so on. This way you don’t have restrictions when developing your DApps. Furthermore Zeeves offers powerful APIs for creating all sorts of use cases across industries – from banking & financial services ground up through retail stores!–allowing anyone interested in exploring what they’re capable of offering!
The platform offers a wide range of features that make it easy for businesses to get started with blockchain technology. With Zeeve, enterprises can take advantage of the security, transparency and efficiency offered by blockchain technology without having to worry about managing the infrastructure themselves. If you’re looking for an easy way to get started with blockchain, be sure to check out Zeeve. Sign up now!
On April 30, 2022, the Government Blockchain Association (GBA) published the Blockchain Maturity Model (BMM). This model was developed over the past two years to give acquisition professionals the tools they need to evaluate blockchain solutions when making purchasing decisions. It also provides a standard to distinguish legitimate blockchain solutions from hype-filled promises. Without this knowledge or framework, acquisition professionals will always choose traditional government contracting partners. The lesser-known, innovative solutions rarely get selected, stifling competition and progress.
The model describes eleven characteristics that should be considered in evaluating any blockchain solution. They are:
Distribution
Governance
Identity Management
Interoperability
Performance
Privacy
Reliability
Resilience (Fault Tolerance)
Security
Infrastructure Sustainability
Synchronization
Get BMM Training
The first qualified GBA assessor to lead a BMM team is Mr. Dino Cataldo DELL’ACCIO, Chief Information Officer (CIO) of the United Nations Joint Staff Pension Fund (UNJSPF). He has developed a blockchain solution for the United Nations and was one of the authors of the BMM. The BMM Team will begin formally training new BMM assessors at the GBA Blockchain & Sustainable Economic Growth Conference on May 25-27 in Washington, DC. Other events are posted on the BMM Events Calendar.
“Many vendors need ways to demonstrate that their solutions are reliable and can be trusted. They operate in environments lacking integrity and plagued by broken promises, hype, and corruption. The BMM is a way that vendors can differentiate their reliable solutions from those of snake oil salesmen.”
– Gerard Dache, CEO, GBA
BMM Assessments Being Schedule Now
The first organization that has registered for a BMM assessment is Axes, a blockchain-based information management platform that licenses actionable intelligence and applications to the global gaming & amusement industry.
Hyperledger, Corda, and Ethereum are all blockchain platforms which are used for the creation and tracking of cryptocurrencies. Let’s take a moment to contrast Hyperledger, Corda, and Ethereum to see how they work. While different frameworks showcase the advantages of technology based on distributed ledgers, they have radically different concepts of application and vision. In this article, we will attempt to demystify the pros and cons of the uses for each of the three applications. Hyperledger, Corda vs Ethereum is a comparison that details the expanse and capacity of distributed ledger technologies.
The case studies of both Fabric and Corda are developed for practical purposes, whereas Corda’s cases are used in the financial sector. For this reason, Corda develops its solutions to retirement age, whereas Fabric chooses targets many industries. Ethereum presents itself as completely independent of any certain field of application. However, in contrast to Fabric, it is not modularity that differentiates it but the provision of a generic platform for all types of transactions and applications.
Participation of peers
With traditional centralized data storage, only the owner controls the database, such as a ledger. As a consequence, the owner publishes which data is entered and which can post other entries. DLT renders this transfer of data radically different, with simultaneous “peers” holding a copy of the data and naturally permitted to make contributions. Distributed data storage involves nodes or peers that participate in it. The difficulty arises with regard to ensuring all nodes agree to a common fact, such as a ledger’s validity, so that changes made by one node can be transferred to all peer nodes in the network. One of the chief goals of consensus is to find a common reality for all nodes in the network.
Consent-based, decentralized consensus has two modes. One is permissionless, and the other is permissioned. If participation is permissionless, anyone is allowed to participate in the network. This is a feature unique to public blockchains like Ethereum. Alternatively, if permissioned protocols are present then the participants are chosen well beforehand and hence there is restricted access to the network. It is valid for Fabric and Corda ecosystem participation, permissioned or permissionless. The mediating medium, whether top-down participation or open, has a profound impact on the way for consensus is reached.
Use cases
The three distributed ledger technologies differ regarding the way they use the use case and vision. Corda derives the majority of its use cases from the financial services industry, whereas Hyperledger Fabric seeks to provide modular, extensible architecture in any industry. Ethereum, meanwhile, regards itself as distant from any particular application.
Consensus
Ethereum
In Ethereum, reaching a consensus for all participants with regard to the order of all transactions taking place is very important. All participants are required to be a part of it, regardless of whether they are a part of that transaction or not. Failure to establish a definitive transaction order could actually lead to double-spend and there can occur two parallel transactions, whereby the same coins are being transferred to different recipients.
A consensus-mechanism can protect the ledger against any kind of fraudulent activities and becomes all the more important to be employed given that there are mutually distrusting and anonymous parties involved. In your current version of ethereum, this is a mechanism established by mining based on the proof-of-work (PoW) scheme. Thus, you must agree on one common ledger and all employees have access to all entries previously recorded. As a result, PoW has a negative impact on the system’s capacity to process transactions. Even anonymous, the records that are stored on the ledger are still accessible to all participants, so applications that need a higher degree of privacy are hindered.
Despite Fabric and Corda’s reliance on Proof of Work, a top-down consensus process is implemented in both cases to promote flexible information processing. A user can participate only in records of their choosing and enhance their security protections by interacting in a permission-eligible domain.
Fabric
The entire workflow is driven by a fabric’s knowledge of consensus. This includes proposing a deposit to the network, signing it, and processing the transaction. To some extent, Ethereum has understood and prepared themselves for any given scenario, but the roles, tasks, and requirements in developing the consensus process are similar.
Within Fabric, nodes with different roles are marked. Coders are categorized as clients, peer, and orderer, whereas end-users are peer and order. Peers secure the ledger and receive alert messages from depositor-orderers about committing new transactions to the ledger. As an endorsement peer is a type they specifically have, their job entails approving of transactions by checking whether or not they fulfill the necessary and sufficient conditions (e.g. submission of required signatures). A channel of communication remains open for clients and peers by way of which messages pertaining to the transactions can be broadcasted. With respect to consensus in particular, the channel maintains consistency for all connected peers, broadcasting the same messages in the same logical order.
At this moment, there are deficiencies in the delivery of orders when many distrusted hierarchical orderers are hired. As a result, a consensus algorithm needs to be used to reach consensus despite difficulties, such as inconsistent order of messages, hence making redundant the circulation of the block chain tolerant. The algorithm employed by Fabric is pluggable, rendering it possible to have a variety of algorithms for various applications. For example, to insulate against certain kinds of abuse, algorithms based on the Byzantine fault-tolerant (BFT) paradigm may be used.
In this way, communication channels are limited to parties involved, which results in transactions being resolved without a need for consensus at address level, where transactions involving unrelated channels are recorded.
A fine-grained system of management and restricted access to transactions allows better performance, scalability and privacy.
Corda
Like Corda, involving the participants alone helps in reaching the consensus at transaction level. Subject to consensus is transaction validity and transaction uniqueness. Running the smart contract code that pertains to the transaction ensures the validity of a particular transaction and also by verifying all the needed signatures and making sure that there are no disputes between the parties regarding it.
Smart contracts
Smart contract code is just a computer program written in a specific programming language. It acts both as a software agent and delegate of the person who employed it with the intention that it fulfills certain obligations, exercises rights and takes control of assets within a distributed ledger in an automated way. As such, it takes on tasks and responsibilities in the distributed ledger world.
DLTs feature intelligent contracts in the sense of payment code that can be found in source codes in Go or Java for Fabric, in Solidity for Ethereum, and in Java or Kotlin for Corda. In Fabric, the term chaincode is used to refer to smart contracts.
In Corda, smart contracts consist of not only computer code but also incorporate legal prose. Therefore, smart contracts are legal prose that is written in such a way that they can be said and implemented within smart contract code. The reason is to give the code more legitimacy given that it is based in the associated legal prose. Both Fabric and Ethereum lack the ability to solve this problem.
Built-in currency
Created as part of the Ethereum system, ETH is a built-in cryptocurrency used for paying participant contributions to reach consensus around the total amount of new blocks to mine as well as to paying transaction fees. DApps can be built for Ethereum that let monetary transactions. Additionally, a digital token can be issued for particular use cases by creating a smart contract that complies with the predefined standard.
Both Fabric and Corda do not require a mining program to establish consensus. With Fabric, however, you can create a custom cryptocurrency or a digital asset through chaincode. With Corda, it’s not planned to create custom digital currencies or digital assets.
Summary: customized vs. generic platform
To summarize, analyzed DLTs span a spectrum. On one hand, there is Fabric and Ethereum. They are both highly flexible, yet contrasted. Ethereum’s powerful smart contract engine renders it a flexible platform for virtually any application. Ethereum, which offers an open mode of operation, does not allow the network to recognize scalability issues. Fabric helps solve scalability and security issues when it uses permissioned mode of operation specifically by means of its BFT algorithm and fine grained access control. Additionally, the modular design permits Fabric to be tailored to a wide variety of uses. An analog to a scalable toolkit can be drawn.
Corda has been purposefully built as a DLT platform for the financial services industry. Notably, it rests on the smart contract framework by supplementing it with customary legal documents.
Corda evidently focuses solely on financial services transactions, simplifying its architectural design in comparison to other fabrics. Because of this, it could offer a more out-of-the-box experience. However, it might also be possible that Fabric, because of its modularity, can operate like Corda’s feature set. Efforts are made by the community to integrate Corda into the Hyperledger project. Corda strives to be incorporated into the Hyperledger project.
Final thoughts
Hyperledger vs. Corda vs. Ethereum is a comparison with growth potential that is likely to proceed alongside the advancement of blockchain technology as well as new applications for emerging technologies. Zeeve is the leading Blockchain as a Service platform helping enterprises and Blockchain startups build, deploy and manage reliable decentralized apps and Blockchain networks. Zeeve is a low code automation platform that is cloud agnostic and supports multiple Blockchain protocols with advance analytics and monitoring of nodes and networks.It’s worth keeping an eye on the evolution of the blockchain industry as more and more new applications emerge. However, the initial digital ledger technologies are very different from one another. On their vision and application, they are still very different. However, it’s significant to remember that the three cryptograms differ greatly, on the subject of technique as well as use.
On May 26, 2022, Ambassador Milena Mayorga of El Salvador will address a gathering of 600 innovators, public-sector administrators, legislators, and executives in Washington, DC. She will be sharing the experiences of El Salvador regarding the adoption of Bitcoin as legal tender. Her country leads the world in the national adoption of cryptocurrency.
That evening Ambassador Mayorga will be meeting with government blockchain leaders from more than:
23 Nations
39 US Government Offices
18 State & Local Government Offices
The event is hosted by the US House Congressional Blockchain Caucus and the Government Blockchain Association (GBA). For more information about the event visit www.bit.ly/bseg22-schedule or send an email to events@GBAglobal.org
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.AcceptPrivacy Policy
