π What is Earth State?
Earth State describes the cyber-physical connections between the digital systems built on blockchain state machines, and the verifiable, changing states we can observe in society, our environment, economy and state of the climate.
This is a important new paradigm for Decentralised Finance (DeFi), because what happens in the real world is what matters for sustainability and planetary regeneration.
Sustainable & Regenerative DeFi responds to changes in the state of the world by autonomously triggering events β such as price changes, or payment transactions, which change the state of a blockchain.
A key differentiator, in comparison with most DeFi applications to-date, is that #ReFi crypto-economic mechanisms are deterministically driven by extrinsic real-world state changes.
— Dr Shaun Conway (@shaunbconway) July 14, 2021
An even more powerful idea, which leads from this, is that changes in the state of a blockchain can bring about changes in the state of the real world. Human behaviours are substantially influenced by blockchain state-changes, when:
- Ξ Chain state β Ξ World State: When people receive the financial incentive of being paid for results.
- Ξ Chain state β Ξ World State: When the current state of progress towards shared goals is both visible and accountable to all stakeholders.
- Ξ Chain state β Ξ World State: When trust is elevated by making claims verifiable, with independently verified data as evidence.
#ReFi can therefore better align peopleβs incentives to work together, invest our money into outcomes we collectively care about, pool available resources, and coordinate our actions to achieve the future-state outcomes in which we all have a stake.
The Internet of Impact provides the mechanisms, services, data and economic platform for building the next generation of sustainable & regenerative digital finance ecosystems.
