Challenges Blocking The SDGs
SDGs are goals that would definitely improve the way we live but they could still be far from reality. In fact, we might still be talking about these goals in 2030 instead of having achieved them. There are several serious challenges that pose a threat to realizing SDGs by 2030.
One of these challenges is a reduction in worldwide funding while expenditure is increasing. Developing countries have a national health budget that is 50% funded by donor funding, so how will such countries be able to realize sustainability? The other major challenge facing SDGs is that some funds are not used entirely for their purpose, hence the need for greater transparency and accountability.
According to a report by the UNDP, Blockchains have the potential to disrupt all sectors and, therefore, this technology should not be seen as a threat to existing systems and governance, but instead, as an opportunity to accelerate collective progress towards achieving SDGs. The report further states that blockchain technology introduces transparency to corrupt systems and brings security to vulnerable processes. This technology does away with the inhibitors that not only threaten sustainability but also stop humanitarian and environmental initiatives from realizing their potential.
Blockchain bridges the gap
The Sustainable Digital Finance Alliance (SDFA), along with HSBC Center of Sustainable Finance, launched the report: BLOCKCHAIN Gateway for Sustainability Linked Bond. This report outlines how blockchain technology, AI and IOT, can reduce the requirements of administrative reports and even help to access the capital that is needed to meet the SDG’s annual funding deficit.
According to the chief intelligence officer of SFDA, Katherine Foster, banks represent $47 trillion in assets and yet only one-third of the global industry has currently signed up to the United Nations' Principles for Responsible Banking. Foster stated that green digital finance will be central to meeting the goals of the UN's Paris Agreement on Climate Change, as well as its Sustainable Development Goals.
The World Food Program, WFP, is a digital finance pioneer and has a flagship program called Building Blocks: Blockchain for Zero Hunger which is often highlighted at events. WFP uses digital cash vouchers powered by blockchain to ensure that food aid gets to where it is needed in Kenya, Somalia, and Jordan.
Project Coming On Board
One of the startups that have come on board to help the UN realize its SDGs goals is 2local. A blockchain platform, ready to launch a system to the world that will build communities through local sustainable businesses.
It has focused on the grassroots level because the effects of development rarely reach there and so poverty levels are high. The 2local structure tries to reduce poverty and reward people by providing them with compensation when they buy local and sustainable products from connected companies within its marketplace. This system is powered by blockchain technology and 2local’s own blockchain has a native coin which consumes very low amounts of energy. A marketplace and smart trading algorithm are in place to ensure that the coin is steadily rising in value. The aim is to contribute to the growth of a better world, using SDGs as a guideline, one community at a time.
The IEO, on 11th Feb, is to be conducted on P2PB2B.IO, a renowned exchange. The L2L wallet will be made available in the 2local Android and iOS app. The request function has a QR code in place that allows users to easily scan codes and amounts transferred to L2L tokens in another account. The second version of the payment app with the marketplace will be unveiled on Android and iOS at the onset of the IEO.