The Promise of Trustless Environmental Monitoring

Despite
myriad
benefits
to
proactively
address
the
consequences
of
climate
change,
society
remains
focused
on
expensive
remediation
as
opposed
to
adaptation
and
prevention.
This
is
in
part
due
to
the
absence
of
accurate
and
transparent
data
to
inform
mitigation
strategies.

Existing
monitoring
systems
suffer
from
significant
limitations
including
inconsistent
data
collection,
manipulation,
fraud,
and
delayed
reporting,
making
it
extremely
difficult
to
create
the
necessary
regulatory
policy
or
proactively
allocate
resources.
This
hamstrings
our
collective
ability
to
adapt
to
the
worst
effects
of
climate
change.

This
op-ed
is
part
of
CoinDesk’s
new



DePIN
Vertical,
covering
the
emerging
industry
of
decentralized
physical
infrastructure.

Blockchain
could
be
the
answer
to
the
reliable,
consistent
environmental
monitoring
we
need
for
climate
planning.
We
at

Montauk
Climate
Corporation
(MCC)
–
a
venture
studio
launched
in
2023
by
veteran
climate
operators
and
investors
–
have
developed
a
thesis
to
address
this
data
deficit
by
building
a
trustless
environmental
data
aggregation
system
built
on
the
pillars
of
cybernetics
and
DePIN.
This
technology
is
at
the
core
of
one
of
our
recent
investments,

Raad.

Decentralized
physical
infrastructure
networks
(DePIN)
connected
to
real-time
data
collection
through
a
distributed
and
decentralized
Internet
of
Things
(IoT)
network
eliminates
the
potential
for
data
tampering,
enforces
data
control
and
encourages
widespread
participation.
The
IoT
network
allows
for
rapid
response
to
sudden
environmental
changes,
while
the
blockchain-based
foundation
allows
for
a
streamlined
incentive
structure,
facilitating
one
of
the
first
non-esoteric
use
cases
for
blockchain
technologies.
The
blockchain
application
also
enables
multi-stakeholder
sources
of
truth,
and
creates
a
data
commons
and
consensus
for
the
physical
world
through
multi-source
data
oracles.

Blockchain
technology
provides
a
tamper-proof
and
transparent
ledger
for
data
storage,
and
smart
contracts
validate
incoming
data
against
predefined
criteria,
further
establishing
a
“data
commons”
for
validation,
consensus,
and
integrity.

This
framework
offers
a
path
towards
enhanced
data
integrity,
continuous
monitoring,
and
global
coverage,
while
simultaneously
creating
a
community
around
environmental
and
meteorological
data.
With
DePIN,
we
can
incentivize
the
rapid
development
of
a
decentralized
sensor
network
that
distributes
ownership
and
control
of
physical
infrastructure
among
various
stakeholders.

The
system
also
incorporates
self-regulating
feedback
loops
within
the
monitoring
system,
enabling
dynamic
adjustments
to
incentives
based
on
collected
data.
These
cybernetic
feedback
loops
allow
the
system
to
self-regulate
through
smart
contracts
and
a
DAO
framework,
and
optimizes
its
data
collection
strategies,
making
it
self-governing.
Additionally,
this
creates
a
dynamic
adaptive
control
solution
that
aligns
incentives
to
deploy
more
sensors,
increasing
speed
of
adoption
and
systemic
growth.

One
of
the
key
use
cases
for
this
technology
is
methane
monitoring.
Methane
emissions
are
an
emerging
concern
under
the
United
States’
environmental
regulatory
scheme.
While
shorter-lived
than
carbon
dioxide,
methane
has
significantly
higher
global
warming
potential
in
the
short
term.
Accurate
monitoring
and
reporting
are
essential
for
developing
effective
mitigation
strategies
and
enforcing
accountability
for
emitters.

While
logic
behind
the
system
is
sound,
challenges
for
adoption
still
remain.
There
have
been
attempts
to
deploy
DePIN
networks
across
other
use
cases
including
WiFi
and
5G
networks,
vehicle
information
and
mapping
with
various
degrees
of
success.
Token
models,
especially
in
the
United
States
and
in
particular
during
an
election
year,
are
subject
to
regime-dependent
regulatory
and
compliance
risk.
We
will
need
to
develop
tamper-evident,
zero-knowledge
proofs
and
remote
verification
techniques
to
ensure
the
physical
security
and
calibration
of
diversely
deployed
IoT
devices.

Additionally,
actors
attempting
to
extract
value
from
these
incentive
platforms
will
defraud
the
network
with
incorrect
data
when
there
is
meaningful
financial
incentive.
There
is
precedent
in
the
early
days
of
Helium
and

STEPN.
Therefore,
designing
appropriate
incentive
structures
for
network
participation
and
governance,
and
crafting
voting
models
to
establish
penalties
for
fraud
are
crucial
for
the
long-term
sustainability
of
our
systems,
especially
ones
that
rely
on
emerging
economic
models.
It
would
also
require
the
establishment
of
proper
reputation-based
scoring
systems
that
reward
reliable
data
providers
to
further
incentivize
participation
and
trust
in
the
network.

The
evolution
of
bottom-up,
self-organizing
communities
combined
with
a
DePIN-based
business
model
presents
a
promising
approach
to
creating
trustless,
transparent,
and
adaptive
systems.
As
we
face
the
growing
challenges
of
a
changing
climate,
solutions
harnessing
the
power
of
emerging
technologies
and
systems
designed
for
self-governance
and
organic
growth
will
become
more
critical
than
ever
to
prepare
for
the
ramifications
of
a
changing
climate.

Note:
The
views
expressed
in
this
column
are
those
of
the
author
and
do
not
necessarily
reflect
those
of
CoinDesk,
Inc.
or
its
owners
and
affiliates.