“[…] This is where the UN and blockchain step in. By highlighting producers who are following sustainable practices, the UN, through its UNDP (United Nations Development Programme arm) hopes that consumers will reward sustainability in Mongolia by paying price premiums for products marked as economically, environmentally, and socially beneficial.
A pilot with technology provider Covergence.tech used Ethereum-based blockchain technology to interact with over 70 different herders and 8 cooperatives. Herders used a simple Android app to register their cashmere along with RFID tags, which then gets pinned on a map instantly.
This allowed targeted incentives for herders who were following sustainability practices and trainings and allowed for end-to-end supply chain tracking of where sustainable cashmere came from, and what herder was associated. For many of the farmers, the Android phones alone generated a lot of interest and enthusiasm.