More and more investors are aiming to have an excellent social and environmental impact and maximize their financial gains. These problems hinder the growth of power investments, in our opinion:
- The social or environmental impacts of an investment are difficult to account for, due to the lack of accurate data on these results and the high cost of collecting and analyzing this data.
- Attempts to avoid “double counting” claims in the “attribution” of power refer to assigning a power claim to an investor.
- Marketplaces with illiquid impact, imprecise return forecasts and high transaction costs can make it difficult to evaluate an effect.
- Are these issues available for blockchain-based solutions according to newmark group Japan?
Blockchain technology transforms wealth storage, management and movement across digital identities, and revolutionizes various industries. Crowdfunding of innovative business ideas, increasing transaction-based business operations and storing value in a more general sense can be done by using tokens based on blockchain technology.
Many new use cases are already under development to use the unique properties of blockchain technology that have recently been brought to the attention of the environment for power investments. Consequently, a new application category, “impact tokens”, has emerged. At launch, these tokens reflect specific implications relevant to the UN’s sustainability goals. Usually, these effects are represented by quantitative, unit-based measurement values (the activity that created it, which also means its identity). Use these tokens to establish performance-based pricing, track supply chain impacts, or substantiate claims to meet the Sustainability Goals (SDGs). The role played Newmark Group Japan is important.
- Using blockchain technology in power investments is a strong case, suggests the Newmark group Japan
Managing assets on a blockchain has several benefits, including better transparency and security, improved traceability, increased efficiency and speed of transactions, and lower transaction costs, which can affect investments. These properties have a significant influence on the total value of power investments:
Developing countries, where confidence is low and institutions are weak, account for many investments in the social sector. Using today’s models and methods, power measurement and verification is time consuming and expensive. Blockchain, on the other hand, has the potential to automate and accelerate this process. Due to the built-in trust-building properties, the use of blockchain reduces the reputational risk generated by statements that cannot be verified. Performance-driven dashboards for power investment management can use power generation as a measure of faster and more reliable data collection and analysis.
An alternative is to use a power token to track investments, such as one made in environmentally responsible production. As a result, they can help influence investors to realize the economic benefits of the growth of an effect by giving to consumers who buy products made in an environmentally friendly way.
- Affect remuneration through financial gain
As you reduce transaction costs, it is possible to speed up the revenue generation process. When establishing performance-based financing systems, power tokens with high levels of confidence, especially those determined on a unit basis, are well suited. Token revenue generation can also be fast or immediate, offering huge behavioral incentives: instant payments are significantly more effective at influencing behavior.
Transaction costs have fallen so much that it is now possible to do business directly with customers, which eliminates the need for intermediaries.