Blockchain ledger platforms have significant potential to establish transparency and indisputable records of activity and transactions. From the donor / investor point of view, they are able to see exactly where their funding ended up being used.
A blockchain is a distributed ledger database that is shared among the nodes of a computer network. While known for its role in cryptocurrency systems, the blockchain’s key characteristic is the maintenance of a secure and decentralized record of transactions. The innovative application of blockchain is that it guarantees the fidelity and security of a record of data and generates trust without the need for a trusted third party.
This transparency, clarity and irrefutability are of significant value to the impact investment sector – relating measurement and proof of impact.
The project will look at the application of Smart Contracts within a blockchain-enabled Impact Exchange Decentralised Exchange platform.
It is anticipated that the use of the Impact Exchange protocol will spread through Project Developers (service providers) and providers of capital as the funders gain irrefutable evidence of impact for the investment they make, and as the service providers are rewarded for delivery of impact.
The Project explores:
- New mechanisms of funding development and climate change investment:
New models for intermediation and support innovation of new structures
- Impact measurement and management:
Business case, develop practice, practical toolkits, innovation and scaling, connection with stakeholders
- Information gaps and market linkage:
The ability to provide accurate, granular information for use in outcome assessment.
- Pace of action and deal flow:
To increase incentives to service providers and lower costs as funders are able to finance specific projects directly.
