Thank you for the question. From my conversations during
@cats_summit with people from across Africa, some common points were identified:
- there is a lack of access to reliable banking
- credit is extremely difficult to achieve, often requiring unachievable amounts of collateral
- there is a lack of trust between parties in transactions
- cross-border payments can be difficult or impossible
Blockchain can't solve all of these problems, but it can help some.
How I believe
5am.Earth can help:
1. Provide users (in this case small, shareholder farmers and other members of broken, trust less supply chains) with durable, self-sovereign identity that can stay with them even across jurisdictions
2. Provide a concept of credit, trust, or collateral in the form of provable, immutable, and verifiable records of activity from planting and harvesting to borrowing and repayment
3. Of course, providing the rails for both financial settlement and transfer but also secure escrow between trustless parties
Why I believe
5am.Earth is the first steps towards the right solution:
1. Existing relationships with the farmers already on the ground:
@Elkconnect_web3 and
@ZengateGlobal have already been building the relationships with thousands of these affected individuals, a critical first step towards adoption
2. The Foundation itself does not aim to be a one-stop solution to the entire supply chain: many previous/current blockchain solutions focus on a particular vertical. Usually this starts and ends at the tokenization of an output/crop (RWA). However, lacking the other pieces needed, the impact is blunted due to a lack of interoperability. Each solution creates their own standards and ends up trying to be vertically integrated (solving all of the world's problems) through their own processes. 5am aims to avoid this problem by positioning itself as the first and most critical level which is the shared standards body that secondary services can build on top of. They are not building a credit market, or logistics application, but rather the process that enables those services to be built.
3. An amazing, existing business development leader (
@YoramBenzvi) and relationships to help it grow and come to scale and realize self sustainability.
All of the choices we must make, as a community, of what to fund come with risk. Many projects will fail or fail to live up to their aspirations. We have amazing tech and we've already funded the research and development of much more amazing tech, but that tech will do nothing for us if we don't put it to use in the real world.
Let me walk through a simple example that exists in my mind:
1. A small farmer anchors their identity and their farm on-chain, through the existing satellite oracle that has already logged 18k txns on mainnet, representing 18k individuals.
2. The individual farmers make a few txs per year, anchoring their planting and harvesting data of their farm. These costs to publish are very low, allowing a service application to either cover the costs or bundle them into the cost of a small, affordable to the farmer subscription/pay-on-demand
3. Given these individual, on chain anchors the farmer can now show a history of performance of their farm, backed up by satellite data. This enables various markets like carbon credits and crop tokenization to be built and extended to these individuals that normally would have no trust from lenders or potential customers.
4. Loan, insurance, or token origination and other services can now similarly be built with the remittance of payments also tracked by blockchain so that there is a lasting history.
5. If the farmer wanted to sell the farm, there is now also a history of its productivity on the chain as well, reducing the trust between seller and potential buyer.
6. Consumer and regulator-facing applications can also be built allowing for chain of custody and certificate of origin development.