By Zachary Profeta, Portfolio Manager
The rise of blockchain and cryptocurrencies have given humanity new tools to address timeless challenges. Industries ranging from data storage to carbon credits are using blockchain technology in ways that couldn’t have been imagined just 10 years ago. Blockchain networks offer decentralized, transparent, and secure databases while also offering offer ways to reward community members for participating in the community and providing community governance. They do all of this while operating as energy efficient Proof-of-Stake networks with low costs of entry and systems that can scale seemingly infinitely.
In this article, we will examine three projects that Sarson Funds has identified as ESG leaders and explore how they align with the ESG investment framework.
Environmental: the “E” in ESG
Helium is a network designed to support the Internet of Things (IoT). With over 980,000 miners deployed in 189 countries and 77,000 cities worldwide, Helium offers a way for businesses to monitor and track their operations, from oil and gas monitoring to food supply chain management and soil health in agriculture. The network operates on a low-cost model. Running an agricultural tracker and monitor system on the Helium can cost as little as $1.05 a year – vastly cheaper than existing 4G network solutions. By leveraging the power of IoT and the blockchain, Helium is helping businesses to reduce waste, increase efficiency, and monitor their impact on the environment.
Social: the “S” in ESG
Arweave is a data storage platform that allows for a one-time payment to store data permanently. With its encrypted and immutable files, users can recall their information at any time. The platform has been used to archive information on the coronavirus, the Russia-Ukraine conflict, and even store NFTs, ensuring that important data and content is protected from deletion and censorship. With costs starting at $2 to store a GB of data forever, Arweave provides a cost-effective way to store and preserve important information permanently through an overly redundant distributed computer network of Arweave community members.
Governance: the “G” in ESG
Hedera is a distributed ledger technology platform that offers speed, security, and efficiency with a vison for its role as an ESG leader. Through its use of verifiable credentials and presentations, Hedera is positioned to support the tokenization of carbon credits. Its technology powers digital commodity exchanges like Capturiant who is entering the United States through a partnership with Texas-based SEC broker dealer Entoro.
By tracking and trading carbon credits in a transparent and efficient manner, businesses and individuals can participate in efforts to reduce emissions and receive recognition for their environmental impact. Hedera’s marketplace prototype uses a network of “Guardian nodes” to provide a level of accountability for the tracking and reporting of carbon credits, ensuring that the information reported is accurate and trustworthy.
At Sarson Funds we believe that aligning investments with ESG frameworks is a way for businesses and individuals to participate in efforts to improve the environment, promote social responsibility, and ensure good governance. With focuses on innovation, efficiency, and accountability, these networks are poised to make a positive impact on the world and the future of investing.
Please visit us a SarsonFunds.com/ESG to learn more about these and other ESG cryptocurrency projects.
The author, Zachary Profeta, personally holds Helium (HNT), Arweave (AR), and Hedera (HBAR) and serves as portfolio manager of a Limited Partnership that also invests in these tokens and other ESG oriented cryptocurrencies.
Not Financial Advice. Speak to your Financial Advisor about all investment decisions before investing.