If you follow news from the world of finance, you've probably heard of "blockchain". But perhaps you've never tried to understand the concept of this word that is revolutionizing the way we know technology and transforming the world.
Read on to understand what blockchain is, how it works and why it can be an ally in boosting sustainability across the planet.
What is blockchain?
Let's make it easier to understand the concept with a practical example: the blockchain is a large chain of data that is spread all over the world and everyone can access it.
In this way, the information it stores is not centralized in one computer, but distributed across several computers that are connected to it.
Within the blockchain you can track the sending and receiving of various pieces of information on the internet, from a work of art to the cryptocurrencies themselves. This information has code fragments and is connected to each other, giving it the name "block" (blocks of information) and "chain" (chain).
How does blockchain work?
Although the blockchain is accessible to all users who are part of it, it has high-level security through cryptography.
When information is stored within a data block, it remains there forever, and it is impossible to delete or change certain information once it has been entered into the system.
But why can't the information be changed? The information is sequenced within a block of data that has a "hash" or "proof of work" - a kind of digital signature that links together to form a chain of data.
Each digital signature is unique to each block, and each block has its own signature plus the signature of the previous block, doubling the encryption and increasing the security of the information contained in the blocks.
The chain that connects each block is linked by the hash and this is where the name blockchain comes from.
What is the relationship between blockchain and sustainability?
Initially, blockchain was designed to create a security system for Bitcoin and other cryptocurrencies. But it is also being explored in several other areas beyond the monetary system.
As well as being extremely safe, this important technology can drive and catalyze sustainable initiatives for our companies, our country and our planet.
As it is decentralized and allows for the real and digital transfer of information, it adds value by turning what was intangible into tangible. In this way, it can generate liquidity and fractionate assets, which will democratize sustainable investments and really accelerate the sustainable changes that governments and organizations want and need.
Because it is more transparent and more accessible, blockchain is becoming a gateway to financing for companies seeking to become more sustainable and meet ESG objectives.
In addition, it manages to reduce capital costs, due to the absence of intermediaries within the platform, increasing the attractiveness of both companies and customers and investors who are looking for organizations that take sustainable and transparent measures.
But it's not just companies that can benefit from blockchain. Trees themselves can benefit from this technology.
Abundance Brasil, in partnership with reforestation company VerdeAzul, has started a project to boost reforestation in Brazil.
Each tree planted is worth 1 Abundance Token. The Abundance Token is equivalent to 1 ton of CO2 sequestered by that tree and guarantees that it will be preserved. If a company buys, for example, 100,000 Abundance Tokens, they will correspond to exactly 100,000 trees planted in their respective geographical locations, which will serve as proof of planting in audits that certify the company as ESG.
If your company is interested in positioning itself with good environmental practices and also wants to be certified as a benchmark company in ESG, it acquires Abundance Tokens that will offset its carbon emissions. The money invested will then go to the reforestation company VerdeAzul, which will boost its planting capacity, generating abundance in local ecosystems.
The Abundance Token is an excellent financial asset because it follows the appreciation of carbon credits and, in addition, because sustainable assets tend to rise in value over time when traded on the secondary market. In other words, as well as doing good for the planet and developing ESG within your company, you'll also be making an excellent investment.
Would you like to buy an Abundance Token and invest in the sustainability of your company, your country and the planet? Then click on this link or contact our team at firstname.lastname@example.org or WhatsApp. Come and be abundant with us!