5ire’s Perfect Recipe: Sustainability x Blockchain x RWA (Real World Assets) x AI
The introduction of 5ire to the blockchain space is endorsing a real-world problem of combatting global sustainability issues, aligning with the UN’s 2030 agenda for sustainable development. At the core of 5ireChain (5ire’s native blockchain), we have implemented a SPoS (Sustainable Proof-of-Stake) consensus mechanism that incentivizes validators towards sustainability to receive higher rewards. 5ire’s goal is to combine blockchain with sustainability, whilst bringing governments’ and institutions’ operations and reporting, related to sustainability-focused real-world assets, on-chain.
Emergence of Sustainability in Blockchain
Several tailwind forces are currently pushing the blockchain industry towards adopting sustainability for consensus and for useful on-chain tools in the space.
The world of cryptocurrency has been negatively portrayed for its excessive energy usage within the bitcoin network. This has led to many projects to create blockchains with significantly reduced energy usage and carbon footprint. Another driver here is the need to create transparency and immutability within the sustainability space, in light of transgressions within the voluntary carbon markets where the stated quality and effectiveness of carbon projects have been vastly over-estimated, and blockchain technology provides an appropriate vehicle to do so.
Emergence of Real-World Assets in Blockchain
From the demand side, Real World Assets (RWA) arose due to DeFi yields having significantly reduced over the past two years, to a point where DeFi yields are almost on par with traditional finance (TradFi) yields. Given the increased risk factors associated with DeFi yields, DeFi investors have started moving their capital to TradFi, for a decreased risk exposure. This opened up a market to acquire TradFi assets on-chain by tokenizing these assets and then allowing investors to quickly pivot capital between DeFi and TradFi markets within the crypto ecosystem.
From the supply side, as blockchain education/awareness has increased, blockchain-curious TradFi entrepreneurs have started to see the potential of this technology within the TradFi sector. In addition, developers from the TradFi sector have started to explore Web3 development.
How 5ire is at the intersection of these two?
5ire is at the core of providing trusted and immutable sustainability data linked to Real World Assets. For example, as enterprises are increasingly required to disclose sustainability metrics, banks and alternative lenders issuing loans expect borrowers to meet certain requirements in carbon emissions, social diversity & inclusion, and corporate governance. Also, carbon credits will play an increasing role in reducing enterprises’ carbon emissions, as the quality of carbon credits becomes more trustworthy, via higher scrutiny in the market and the transparency of tracking on-chain. Lastly, public-listed companies’ stock prices are becoming increasingly (positively) correlated to companies’ ESG performances within the public equity markets, and shareholders and regulators are demanding more sustainability reporting from these companies.
As 5ire will be at the center of sustainability reporting, and operations for enterprises, governments, and institutions, our chain will be a great source of information for sustainability-focused assets (e.g. loans, carbon credits, stocks/shares, corporate bonds). Not only can 5ireChain be a source for asset pricing and verification of corporate activities, but investors and traders will be able to use the data to determine the sustainability risk associated with a given real-world asset.
How AI will play a role in 5ireChain’s future?
In the future, once 5ireChain is handling a very large, ample trove of quality sustainability data, the 5ire team could potentially use the data to train and develop an LLM product (5ireAI), which would then give 5ireChain participants suggestions for improvement based on their sustainability operations and metrics. This product could also be used as a prediction model for forecasting outcomes of entities’ sustainability metrics. For transparency, please note that no current development is in the pipeline for this specific product, and also is not in the current roadmap for 2024.
In conclusion, 5ire stands as the pivotal intersection where blockchain, real-world assets, sustainability, and the potential for AI converge. With our SPoS consensus mechanism and commitment to linking real-world sustainability data to the blockchain, we embody the future of sustainable innovation. As blockchain technology continues to merge with the tangible world of assets and sustainability, 5ire is positioned to be a central hub of information, providing transparency, accountability, and insights that drive positive change. Our vision is clear: to be the bridge that reshapes the landscape where blockchain meets real-world sustainability, unlocking a future where sustainability is integrated seamlessly into every facet of our digital world. Join us on this transformative journey towards a greener, more interconnected future where 5ire paves the way for meaningful impact.