Hyperledger Foundation Hyperledger Indy, 11 Jun 2021

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From YouTube: Hyperledger Indy & Aries and the Spatial Web for... - Martin Enrique Wainstein, & David Thomson

Description

Hyperledger Indy & Aries and the Spatial Web for Nesting Carbon Accounting - Martin Enrique Wainstein, Yale Open Innovation Lab & David Thomson, Verses

The Yale Openlab, the Open Earth Foundation and the Verses teams will provide a demonstration of the Open Climate platform efforts, showcasing how distributed ledger technologies (DLT) frameworks, like Hyperledger Indy and Aries, alongside next-gen spatial web protocols can be leveraged to establish nested jurisdictional accounting of climate actions via digital assets. This presentation will continue into a panel discussion around the relevance and application of Hyperledger frameworks in the climate context, including opportunities identified from the Climate Action and Accounting SIG. With verifiable, trusted and context-aware carbon data assets as a core element, the demo will propose and discuss how to achieve interoperability of climate markets and allow cross-jurisdictional trading whilst avoiding double counting.

Session Details & Slides (if available)- https://sched.co/j3df
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A

So um we're gonna we're gonna start by uh sharing our screens real, quick, just to make sure that uh the system's working and that you know that you're on the right session, we're going to be speaking about hyper ledger, indie in aries and the spatial web for nested uh accounting tested climate accounting.

A

So if this is the presentation you're after then, you are in the right room and uh while we wait for people to come into the presentation I'll, um perhaps we start by doing a quick introduction of myself and david. My um my name is martin weinstein. I am the founder and executive director of the open earth foundation.

A

We are a non-profit uh dedicated to the intersection of emerging digital technology and open source and open digital infrastructure, but with a very ambitious goal of working and thinking through planetary scale, solutions to our most existential environmental challenges, climate being, of course, a very important vertical on that, but a little by little, also focusing on biodiversity.

A

um I'm also the uh the founder and director of the open innovation lab at yale university.

A

Both opening foundation and yellow open lab are members of the hyperledger um community uh and, if uh you don't know about it, uh there's the hyperledger climate action and accounting special interest group, which I also found it uh last year and now it's led by some extremely active and coordinated chairs. So I definitely engage that if you're interested in the intersection of hyper ledger and climate that you check out the special interest group um and with that I'll pass it on to david for his introduction.

B

Everyone, my name is david thompson: I'm the director of integration at versus versus dot io.

B

We have developed a core technology in the networking computer networking space called the hyperspatial transaction protocol, along with the hyperspatial modeling language that we've partnered with the ieee to standardize that we will be formally launching in july, and one of the key applications and use cases that we've been supporting and driving is uh working very closely with with martine collaborating around uh uh nested climate accounting. So very, very excited to be here and um thank you all so much.

A

Great so um I'll. Thank you david uh I'll. Kick it off by giving also some some introduction for the run of show today um I'll give a quick introduction to a project that we've been incubating. Both at yale and open earth foundation called open climate. um Highly ambitious uh vision to create an integrated climate accounting system, give some background knowledge on climate accounting for everyone to wrap their head around it.

A

um And then david will pass it on to david to talk a bit about the spatial web and some backgrounds on how bigs and verifiable credentials fall into that um and we'll talk a bit about a prototyping pilot that we did last year and even mentioned some of the exciting ongoing opportunities for this year, but really we're interested in creating a q, a as as as we're always looking for establishing communities of collaboration um and I'll start by showing a bit of the level of complexity.

A

When we started creating a framework for an integrated accounting system now framed as open climate and there's, obviously a lot of moving parts. But but the vision is to be able to have digital agreements and consensus in the flow of information between the state of the planet, earth system, state that can relate specifically to the carbon budget, how much co2 we can still put in the atmosphere before 1.5 degree.

A

Warming happens, what's the state of the world system registry. So how much are countries sub-national actors, non-state actors emitting, and how? What what pledge that they make to do? How to certify climate actions, uh whether that's emissions and in a context is often referred as mrv, modern reporting verification, huge uh important opportunity for the digitization of that and automation of that through iot data and smart contracts, and when one verifies emissions or mitigations or adaptation actions that gets assetized properly.

A

If under this protocol and that asset, let's say tokenized data information can also be moved and traded. So it moves into climate markets and all of that information needs to trickle into climate finance by 2030. We should be pouring four trillion dollars of capital to be able to decarbonize our economy. So it's very important that we do this in a way that it's going to work, because the stakes are so high that if we don't, we don't properly set up our digital systems to um to align with this, we won't meet our climate goals.

A

So what is nested climate accounting in in many ways is, of course, what it sounds. But uh when I was talking about these assets of data, whether it's an emission or a mitigation, it could be units, um it's it's very relevant to uh to think about the architecture of how non-state actors and, uh let's say, such as corporations um and subnational governments they're the way that they manage their carbon inventory could roll up to the national inventory.

A

This would simplify, but also help a connection between the non-state actors and civil actors to be part of the paris agreement at the international level. That's a big, that's a big part of what what happens is the paris agreement is between countries and the u.n, um but where do corporations and sub-national governments fit in so by creating jurisdictional boundaries?

A

This is one of the things that we've been wanting to explore, and this has been a wicked problem for many years. So what we present here is a bit of exploration last year and a lot of work ongoing to continue those efforts this year.

A

The second part about open climate is the search for technology that helps us create interoperable climate units, a common language on how we talk about climate um again, the climate unit could be either positive, carbon negative carbon, but there needs to be a methodology of how that was defined um and even a certification of quality that that could end up being, as we know, in accounting, either credits or debits, and when we talk about net zero, so say, if you know of a company that has a net zero goal.

A

Well, essentially, that is an accounting statement. Right credits and bad debits must balance themselves, um and this has been a lot of the work that we've been looking at, how to create that level of interoperability and trusted interactions to make these uh visions possible.

A

The third finally important architecture, piece of of the research is then, when we have interoperability when we have jurisdictional uh context to this, can this help integrate climate markets, uh because the assets that I mentioned can uh be moved around could be traded, um and this is, of course, a hugely booming area.

A

The voluntary carbon market world has grown a lot in the last couple years um so that emission reductions can happen in in-house within an organization but also uh could be sourced elsewhere, so um hopefully that that obviously there's a lot there to unpack, but it's to give you a vision of open climate um and if, if you probably need a primer, a bit of where this sits within the broader climate accounting world, I'll just explain that what we will talk about today is mostly around carbon accounting, which means emissions and mitigation, but that's not all of accounting adaptation measures, how organizations, individuals and countries prepare for a roma world how to account for pledges and to create accountability towards those pledges and then how much money we move around in the system.

A

Those are very important climate, relative accounting that don't relate to carbon um in the market. Space we have the voluntary carbon market if you've ever tried to offset your flight. uh That's normally. Where that that lies. You are totally doing it on a voluntary basis, but there are compliance mechanisms that some national actors have, such as renewable energy certificates for utilities, uh national level and international.

A

uh The most important international climate market is has been the kyoto protocol and uh the clean development mechanism within it. uh But how does markets fit into the paris agreement that also becomes very important? One of the things that we were looking at from a research standpoint is, is how do we draft the negotiations for climate markets in the context of paris?

A

How can technologies like hyper ledger, uh particularly the use of decentralized identifiers and verifiable credentials and trusted ledgers, can help in the mechanism of preventing double counting in uh climate markets, and that is still under negotiation.

A

So it's very important that from the technology open source technology world, we get to the united nations, the conference of the parties to inform um the capabilities that we that we have so one of the demos that we'll prototype that we will showcase at the end of this um and we'll point to a video that we'll talk through is is actually to look at the north america as a blueprint of how we could address some of these issues globally and, let's just say something as simple as a renewable energy project that produces, of course, clean megawatt hours that gets trade translated into a renewable energy certificate, an asset that says one megawatt hour of clean energy was produced and that's a sign to someone.

A

But you can have buyers in fact, there's regulation to require certain utilities that have to have a certain amount of wrecks. Now what happens within a north american context of markets how they are laid out when you've got buyers and sellers in different markets.

A

So what we'll showcase in terms of nested accounting is that by by creating robust acidization of a unit, let's say a renewable energy certificate and and also the associated carbon, attach it to a geofence region, let's say a sub-national region: um it could allow that if you move between one market to the other, uh then you would have to create uh what are called the corresponding adjustments at the inventory of each jurisdiction it and it could help between states within the u.s or regions within the north american market.

A

But it also the same architecture would work internationally. um So hopefully that's a good good background explanation of what we are exploring and the different applications, and so because I talked about jurisdictions and geofence regions. I'm gonna pass it along to david to give an introduction of the concept of the spatial web, uh I'll stop sharing and maybe david. You have more agency to do it on your own.

A

B

A

Feel free as we're doing that that if you have questions or thoughts go into the session, tab put q a and you can drop thoughts in there and we can uh address them as we go or or pick them up at the end.

B

Beautiful, uh thank you martine, uh so I'm just going to give a little bit of high level framing on the spatial web web 3.0. If, if you will and just provide a little bit of background context on these core standards that we're working with the ieee on and then we'll bring that back to how we can apply these standards, hopefully to address our planetary, civilizational level, challenge of climate change.

B

So there are three core uh standard specifications that we're working with the ieee on one is for hyperspatial domains, which is key to the jurisdictional nested, accounting and understanding of you know various different boundaries related to markets and and regions inside of particular territory. That's accounting, the hyperspatial transaction protocol and the hyper spatial modeling language that I'll speak about just for some high level framing so really quickly.

B

The point of what we're trying to accomplish with the spatial web. It's really in fact a hyper-spatial web and what we mean by that is it's connecting spatial semantic and societal data, contexts and mapping the relationships between them so that we get a coherent view of context for every interaction in the real world. It's really about creating a cybernetic feedback loop between the digital and the physical realities.

B

This is the very quickly the hyper spatial modeling language. This is also part of the ieee standards work, and this is not a canonical data format or model as much as it is a an activity, uh modeling language that allows you to color uh mathematically, colored data data streams for for ai, particularly to be able to infer from data streams context at a much higher degree of precision.

B

So we say some user, some actor by virtue of some authority within some hyper spatial domain has a right based on credentials which are uh in the form of, in our case, in implementing with hyperspatial uh sorry, hyperledger, indian aries to perform a claim on an activity and all of the transaction streams, which is an activity state change, are then stored in a graph structure which we refer to as a context graph.

B

These context, elements, and by virtue of storing every transaction, every activity state change with this very rich coloring language. We can be able to trust data across contexts and be able to transfer workflows and accounting methodologies across context much more efficiently.

B

So once the the data is in that graph format, we can now query with the hyperspatial transaction protocol in any dimension or across dimensions by ranges so temperature uh over time. Air particulate counts, soil conditions, um every asset gets gets registered and we're constantly enriching context around that asset by creating essentially uh smart contracts, but that are uh can extend to other dimensions. So you can have either a prescriptive or restrictive contract related to orchestrating real world interactions. You know and to define clean air. It means xyz.

B

As far as you know, you know the content of that error. That then, is uh reinforced by uh all the sensoria that are then signing uh uh verifiable credential transactions.

B

So, finally, all this goes into essentially a volumetric extension of a hyperdimensional extension, multi-dimensional extension, sorry of the virtual, the concept of a virtual domain. So now you can say for this plot of land. You know who can? Who can plant who can collect? Who can sequester? Who can um act?

B

So we've been working very closely with the open earth foundation and the yale open innovation lab to apply these technologies first and foremost, to this. This critical challenge that we have in front of us, and so we've done a number of prototypes of both verifiable credentials as well as something we call dynamic, adaptable schemas related to interoperability of all these data that are used for climate accounting, so there's a hour and a half long video.

B

If you run out of nyquil someday of the full demo that we did a short a few months ago as a result of a year plus of r d work. So I encourage anyone to check that out, um but we'll go through a little bit of that at a high level uh here today, as well. So in this prototype we're using graph database. These are just reference: implementations, hyperledger, indian areas for all the did, and credential issuances and um simple document storage, um we're using gid and verifiable credentials.

B

The ids really throughout for everything every asset gets a did every every um every uh you know basically, identity is, is a did in the system in the graph. It's just a sea of dids. In essence, in the context graph, but one of the things we're doing is we take schemas and we deconstruct them into a series of connected nodes in the graph so that you can link any data and any schema to every single interaction in the real world and transaction in the real world, and that basically ensures that you don't lose context.

B

uh As I was saying, every actor domain, an asset has a decentralized identifier, um and all of these are represented as verifiable credentials that then are used in proofs and spatial contracts related to. Is it okay, for example, to transfer this wreck from one area to another? We evaluate that as a hyperspatial transaction using the hyperspatial modeling language.

B

All. As I said before, all this all the schemas are linked and I'll go into that a little bit more in terms of the power of that. But really, this kind of cut speaks to the fact that we have many different registries with lots of different data schemas for representing the same type of information, and we need to be able to normalize those together in a in an extremely efficient manner, so that, when we're doing the paris global stock take uh starting in 2023, you know.

B

Ultimately, we want this to be a a real-time accounting uh where you know the the national inventories are rolled up in in real time from all the the sub domains that that that they that they reference rather than a long multi-multi-year process of of combining spreadsheets together, um all of the conditions of the contract get inherited, and this is where you allow allows you to express policy in a spatial manner.

B

um We're also working with the european commission to develop the drone standards for the eu, including all the monitoring, reporting and verification actions related to any drone. So um this is an example of where you can extend um hyperspatial contracts beyond just the accounting into the actual monitoring.

B

Service some of the functional aspects of of the demo that we delivered and the the relevancy go ahead.

A

Great, thank you uh david. I hope everyone's still sort of uh following along. I um I put the the url of the youtube uh where you could also watch uh later in depth in the demo. uh That was done in the context of another event, and we thought it was very important to be able to share it here in the hyperledger global forum. um So and then you can also see these slides as we as we go if you want to check them out later.

A

So uh the first sort of demo that happened a couple years ago or one year ago, is okay. When I talk about renewable energy certificates, assetizing that that certificate is very relevant.

B

So if you have.

A

For example, a solar farm- and you want to prove that an electric vehicle charger uh is charged through uh renewable energy. Otherwise, why would you have an ev? That's using coal based uh electricity? That is a challenging of itself, because the certification of renewal often comes in aliquots of one megawatt hour. So one wreck is one megawatt hour, but what you're going to be using is going to be at the kilowatt hour level.

A

So we have to fractionalize that certification- and you know, also need to be able to have a traceability of that where it came from when how it was purchased and in some sense the eb then has to have a wallet of all those, not just electrons. But history of data packages of where that come from, and so with that we worked very closely with the organization called clear trace. They specifically do that and use iot integration and create immutable data records based on that, so that it can establish rich attributes.

A

So almost every reading of a smart meter, smart meter at the uh renewable energy site, but also smart meter at the let's say, tesla supercharger- are also recorded and reconciled. So that would we can get to what's what's called in the renovation space a load following matching, um and uh if, if we think about that from the semantics, a lot of what david was chatting about here is a bit of how to create a very rich spatial context and leveraging the ids and verified credentials an amazingly, exciting uh space.

A

But the semantic part is very important so who? What? Where, when how becomes very important the contract between an electric vehicle that says I want to source renewable energy well has to be able to create a fully um semantically logical context for that. So this is a good example. In this case, the the power utility is avigrid in in connecticut uh produces a solar energy that was financed by xyz.

A

That has the device that a certain point in time produces electricity, that's verified, that is, it is indeed renewable, or that it was produced that it displaced carbon that gets associated to a certificate.

A

That also is approved by normally the registry, the regional registry that manages in electricity and then you've got your tesla charge station, which is a different domain. So this might be in a totally different space than this, and in fact that might be very relevant if you are, let's say in california, trying to buy electrons that were put into the system in north dakota. uh The offsetting capability of that might be lower than the ones that are regional um and and why? Because you really want to account the right as a consumer to do that.

A

So that's that's the example of of that semantics and then we go even into higher levels of complexity. So if we read that semantics from the left avenger, which is the utility by authorization of the asset manager and the sustainability director of the company, but also the ministry of environment, of north dakota transfers, this is this is in the case of a wind farm within one, um a wind farm, that's owned by this company having grit that is in within this spatial domain, north dakota.

A

So this is very much venn diagrams that are also nested um all within earth. And so these are the type of semantics applied to the type of credential users authorities, assets, um um so uh transfers mitigation outcomes to tesla motor from california who receives these these assets and are also approved by ministry of environment. Why? Let's follow.

B

A

Just real quick to understand why administrative environment comes important, so now we have an asset which is wind. It creates as an activity. Electricity gets converted into a renewable energy certificate. A mitigation outcome has to be verified by, for example, cleartrace or switch that says yes. This was indeed created that gets moved into a registry.

A

It's authorized, for example, by a ministry of environment of north dakota that that asset can leave the territory.

A

If, if, if a ministry of environment does not allow that in different jurisdictions, it could be different entities does not allow that, then that should not be able to move so a buyer should not be able to buy it, but if, but what does it mean that it allows it, because once you move that asset from one territory to another?

A

um What it needs to happen is that the inventory of north dakota has to lose that mitigation outcome and move it into the inventory of the recipient. So essentially it's not just a transaction between attend grid and tesla. It's a transaction between north dakota and california needs to be properly represented in their inventories from the united states standpoint, which is the broader box. Here, nothing happened right. All these assets still move within the u.s.

A

um uh Let's say management in the which, which often at the inventories managed by the environmental protection agency and again obviously alt, is within earth, and who is the authority dealing with climate accounting? Ideally, is you know triple c in paris agreement, so these are the type of situations that we set out to try to do highly complex. But then it's it's. The next 30 years are going to see a lot of this happening. So uh we got to explore what are the different components from a technological standpoint that can help us.

A

Do that um so again, you'll be able to see this uh in the video that I posted feel free as we move along to post uh post some q a's, um and um let me just show you a little bit of what this looked like.

A

um We we demoed in each jurisdiction a level of a carbon balance, uh white being a zero balance and blue a little bit of a positive balance, so net mitigation and red- um and so we started playing around with this, so that so that we really test that an asset which is like, let's say a power plant in georgia- affects the carbon rating of that state. um These are examples of how these conversions occur from one wreck to uh to a climate action asset.

A

um I hope that we have time david can talk a bit about the how you create homogenizable sort of assets um these get registered so that you'd be able to follow a bit of what I showed before. What price a certificate has uh then you've got the purchaser.

A

The purchaser has a wallet of credentials, and these get moved around and once it's retired, it means that it cannot be traded anymore, and so that should be also um a contract in and of itself, often when with tokenized carbon offsets in in the normal, so ethereum world these are burnt uh so that they can't be traded again. um So I'd really encourage. uh Oh, this is a different sort of uh youtube: video that I'll also put um put the content there um and there's some exciting points. Maybe david!

A

You can just unmute yourself and talk a little bit through it. I'm gonna read uh one of the q and a's and um and as you're walking through it then we'll be able to address the the q a. But let me see if this is probably a slide, that you can talk a little bit too.

B

Sure um yeah, the question uh from will abramson was how many areas agents are used and what do they represent? Can you go yes? um How are these gettys assigned and who controls the keys so um at the highest level um today, at the very least, every authority that is responsible for specific domains would have presumably have its own agent as well as ultimately, every actor that participates.

B

So, um if uh you know, if um you basically have um you need you need you know at the end of the day, I think what will eventually happen. We hope is that every single citizen in the world being a stakeholder in this, would ultimately get their own. um You know, uh identity with respect to how they are are participating in. You know various different ways that they roll up their activities, whether they're a part of a company or a city or otherwise they're, ultimately citizens.

B

So um today, it's really individual authorities in their own execution context would be the issuers of these credentials and signers of the transactions and um and yeah.

A

And- and it really depends it's not like a single point, so we one would expect that let's say the united states issues uh a climate credential to california. California can issue that credential to tesla um within, let's say.

B

A

They have to also issue the the asset, but that needs to be verified by others, um and this is this is the where this kind of interfaces with government technology- it's where it becomes really exciting, because you've got private actors issuing the ids and verifiable credentials and you've got government issuing those to um to companies. We probably have ideally some folks in the room from british columbia. They're.

A

Definitely the leaders in in the space, um um but it's it's a lot of that that relationship between not just one single issuer, but but the relationship uh and maybe david. If you want to talk a bit about dynamic at absolute tunes. Otherwise, we have some interesting sort of uh yeah.

B

Just to get through it I'll just say a couple uh things at a very high level. um I know there's some work also going on in the trust ip foundation. You know around schema management, and this is extremely important for climate accounting. In the instance here we have three different registries kind of the primary registries, and you know these are really representing the same types of projects. um Wind projects.

B

You know uh land-based mitigation um projects, but you know they have different field names and things like that and on, on the one hand, um they're just simple in some cases, field mapping, but on the other it creates inordinate amounts of uncertainty and risk, and data transfer and cleanliness issues, so we're working very hard on being able to anchor specific projects in their spatial and semantic context, and so over time we sort of start to develop neural neural pathways, almost with respect to how to trans translate between different data schemas, so that, as we onboard new projects to environmental projects, we can um leverage that.

B

So let me see if we have a couple.

A

I realize we just ran out of time. This is sorry we got carried away. There's some really important q a's here. So I would encourage people to write us, I'm going to put our emails here so that we can continue the conversation. If you are interested in learning more.

B

A

This and some of the exciting projects coming along. um Thank you james for facilitating. I hope that was enlightening. There's a lot to unpack there. So uh it's it's fine that there's a couple of things that we didn't go a little bit deeper into, but uh we'd be very, very excited to reach out to anyone with further questions, and david is david yeah.

B

I can you know if I don't know, if we're supposed to hard stop. I can try to answer a couple of the questions. um Yeah assets are represented as verifiable credentials. um Ultimately, every data stream can be converted as we imagine, every transaction can be converted into a verifiable, credential and reused to prove some context so um issuing renewable uh green electrons in one context, you know, becomes a credential that then can be used um when it's converted into a mitigation outcome and then eventually retired.

B

um So this looks pretty complicated. A lot of change. Yeah I mean um climate accounting is not a not a simple subject to begin with, um but it's so critically important and um the the key here of what we're trying to do is we're trying to meet the world where it is uh with respect to the state of the art in in climate accounting. But we're really trying to um you know, get it much closer.

B

As I mentioned to real time or or you know, speed of light, as close as we can, we can get and um we need you know we're one human family. We have one budget uh for our our carbon that we can emit, that we have to sequester and we don't really have a quickbooks uh to track all of this and um at a at a higher level when, when the initially, when the financial markets had all these reporting public reporting requirements, we thought that this was just outrageous.

B

How can these companies you know report on all their revenue? It's going to cause all kinds of extraordinary complications. It's so much change, and there was. But now we just accept this as as a required part of doing business, and I would say I would go so far as to suggest that ultimately, environmental accounting and financial accounting really need to start to merge.

B

We need to do accounting the way that nature accounts for things, which is really at a molecular level, and we need to have our policies that are really informed by are we actually doing good? Are these actions really being impactful, and if we don't have another 10 years really to go through?

B

um You know a bunch of hand waving, and you know people comparing apples to to oranges so to speak and.

A

uh To answer one of the questions- and I know we have two more minutes that are a little bit of extra time um implemented in practice, so the leveraging.

B

A

And credentials are already uh implemented in practice in different cases and again so, for example, british columbia that that's already in practice and our role is to collaborate as much as possible with with bc, to be able to take a lot of these lessons learned and try to think about how this would be rolled out.

A

Also, since you already kind of have some infrastructure on dids and vcs um and and then there's a lot of moving parts, actually great question of how many ares agents were deployed in that, I think we would have to go back and count them, but there was definitely more than more than more than one um and it's just a question of like structuring architecture in a way that you could have a lot, but it probably starts making no sense for a human, but it starts making more sense for ai um with that.

A

Unless there's anything else. Thank you so much for joining. uh Hopefully, it's helpful that we put the youtubes to learn more the um the debt that we just showed and our email for any follow-ups.