With wild price changes in cryptocurrencies, sometimes it can be helpful to get back to use cases: areas where distributed nodes and decentralization can help advance important social outcomes with credible partners. The UN is now working with the Mongolian state and cashmere farmers to highlight and deliver sustainable cashmere with blockchain.
In Mongolia, agriculture is of paramount importance. Before the transition in power through a peaceful revolution to a democratic government in 1992, agriculture was completely controlled by the state. Production dropped dramatically as the sector transitioned to be market-driven but since the mid-2000s there has been a recovery with government programs mixing with market-driven incentives.
As recently as 2011, about 30% of the population worked directly in the sector. The sector generates about 13% of Mongolia’s GDP, and about half of Mongolia’s population in 2016 were either directly or indirectly employed by it. The livestock sector of agriculture is one of the most critical, comprising nearly 83% of agricultural output, with cashmere being a top export product for an array of small-scale herders. Cashmere is Mongolia’s second largest export in terms of trading volume.
Cashmere, once considered a luxurious product for only the very wealthy, has recently been made more accessible with its inclusion in chains such as Uniqlo. The best cashmere in the world is considered to come from the coldest regions of Mongolia due to the climate pushing local goats to adapt in conditions optimal for the creation of comfortable, soft coats.
However, due to overgrazing, there are issues with environmental degradation that come with cashmere sustainability. Despite the fact that buying cashmere, a long-lasting product, can be very sustainable and ethical (cashmere cultivation doesn’t hurt the animal, it supports small-scale producers, and it is functional, soft, and biodegradable), the overall effect may not be if overproduction damages the environment.
This is where the UN and blockchain step in. By highlighting producers who are following sustainable practices, the UN, through its UNDP (United Nations Development Programme arm) hopes that consumers will reward sustainability in Mongolia by paying price premiums for products marked as economically, environmentally, and socially beneficial.
A pilot with technology provider Covergence.tech used Ethereum-based blockchain technology to interact with over 70 different herders and 8 cooperatives. Herders used a simple Android app to register their cashmere along with RFID tags, which then gets pinned on a map instantly.
This allowed targeted incentives for herders who were following sustainability practices and trainings and allowed for end-to-end supply chain tracking of where sustainable cashmere came from, and what herder was associated. For many of the farmers, the Android phones alone generated a lot of interest and enthusiasm.
471kg of cashmere was tracked through this system from nomadic small-scale growers to a processing factory in Ulaanbaatar and ultimately to end consumers willing to pay premiums for sustainable cashmere. This was a consensual process from both sides, with herders stepping up and willing to have their goods marked in return for training on better practices and the hope of opening markets to paying price premiums for truly sustainable and high-quality cashmere.
This case study has not only helped nomadic farmers realize the benefits of blockchain technology: it has also helped open eyes at the UN, which has been looking for a solution like this to unlock more value for every stakeholder involved. Today, the technology is focused on cashmere, but tomorrow it can be focused on any other good or service that needs to open markets.
With wild model changes in cryptocurrencies, usually it’d be functional to ranking aid to consume cases: areas the place disbursed nodes and decentralization can relief advance major social outcomes with credible companions. The UN is now working with the Mongolian speak and cashmere farmers to focus on and raise sustainable cashmere with blockchain.
In Mongolia, agriculture is of paramount importance. Before the transition in energy thru a peaceable revolution to a democratic authorities in 1992, agriculture was once fully managed by the speak. Production dropped dramatically because the sector transitioned to be market-pushed however since the mid-2000s there has been a restoration with authorities packages mixing with market-pushed incentives.
As no longer too long previously as 2011, about 30% of the population worked instantly in the sector. The field generates about 13% of Mongolia’s GDP, and about half of Mongolia’s population in 2016 had been either instantly or no longer instantly employed by it. The cattle sector of agriculture is one among basically the most extreme, comprising nearly 83% of agricultural output, with cashmere being a top export product for an array of exiguous-scale herders. Cashmere is Mongolia’s 2nd perfect export in phrases of procuring and selling quantity.
Cashmere, once regarded as an opulent product for perfect the very filthy rich, has no longer too long previously been made more accessible with its inclusion in chains equivalent to Uniqlo. The correct cashmere in the sector is idea of as to approach aid from the coldest regions of Mongolia attributable to the local climate pushing local goats to adapt in conditions optimum for the creation of contented, relaxed coats.
On the different hand, attributable to overgrazing, there are factors with environmental degradation that approach with cashmere sustainability. Although procuring cashmere, an enduring product, would possibly well maybe perhaps maybe be very sustainable and ethical (cashmere cultivation doesn’t difficulty the animal, it helps exiguous-scale producers, and it is purposeful, relaxed, and biodegradable), the final construct would possibly well maybe perhaps maybe no longer be if overproduction damages the atmosphere.
This is the place the UN and blockchain step in. By highlighting producers who are following sustainable practices, the UN, thru its UNDP (United Countries Style Programme arm) hopes that customers will reward sustainability in Mongolia by paying model premiums for merchandise marked as economically, environmentally, and socially functional.
A pilot with technology provider Covergence.tech feeble Ethereum-essentially based mostly blockchain technology to possess interaction with over 70 different herders and eight cooperatives. Herders feeble a straightforward Android app to register their cashmere along with RFID tags, which then will get pinned on a draw real now.
This allowed focused incentives for herders who had been following sustainability practices and trainings and allowed for dwell-to-dwell present chain tracking of the place sustainable cashmere came from, and what herder was once related. For loads of the farmers, the Android phones alone generated rather just a few passion and enthusiasm.
471kg of cashmere was once tracked thru this machine from nomadic exiguous-scale growers to a processing manufacturing facility in Ulaanbaatar and finally to total customers prepared to pay premiums for sustainable cashmere. This was once a consensual course of from each and every aspects, with herders stepping up and prepared to possess their goods marked in return for coaching on better practices and the hope of opening markets to paying model premiums for in fact sustainable and top quality cashmere.
This case peep has no longer perfect helped nomadic farmers realize the advantages of blockchain technology: it has moreover helped originate eyes at the UN, which has been shopping for a resolution admire this to unlock more cost for every stakeholder bright. At the calm time, the technology is pondering about cashmere, however the next day to come it’d be pondering about any different criminal or provider that desires to originate markets.
