New technologies for social impact: providing access to basic services for all

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At the heart of the concept of Universal Basic Services (UBS) is the basic principle of providing basic needs and resources to ensure a basic quality of life for all citizens. While such projects have been around for decades, recent technological advancements are reshaping the landscape of delivering such services by integrating real-world assets.

This integration has the potential to overcome the traditional challenges faced by UBS programs and help governments and organizations achieve the global goals set to improve human lives. For example, according to a World Bank document, to achieve the Sustainable Development Goals (SDGs) and provide water, sanitation and hygiene services to underserved communities around the world, about $28.4 billion per year will be needed by 2030 (ranging from $13.8 billion to $46.7 billion).

Technology-enhanced solutions provide a way to increase transparency and efficiency in resource allocation, ensuring that funds meet their intended targets and have the greatest impact. In addition, with tools that combine digital and real-world assets, new funding models and investment opportunities will emerge, potentially increasing the resources available to address these challenges.

01 Transformative social services

The potential of real world assets (RWAs) in reinventing the traditional UBS model is tied to the sheer size of this emerging market. According to Markets and Markets, real-world assets will become a $16 trillion industry by 2030. In addition to improving access to financial services, these digital solutions can be applied to the way essential services are delivered. It can also be linked to the larger landscape by improving governance mechanisms to increase sustainability.

For example, access to medical equipment and services has been a concern, especially in rural areas. Traditional methods of resource allocation may not be the most effective. Real-world asset technology offers hospitals and healthcare facilities in these communities the opportunity to take partial ownership of expensive equipment, allowing multiple agencies to share costs. In addition, the shared network that provides services can be controlled through smart contracts, increasing efficiency and transparency.

Another possible application is the distribution of essential services such as electricity, water, and even food. Through a project at UBS, the concept of applying technology to real-world assets can improve transparency in tracking and supply chain management. In previous years, there have been similar initiatives, such as Guizhou Province's use of blockchain technology to track the distribution of poverty alleviation materials.

"This paradigm shift is not just a sign of the development of finance, but a step towards a future where universal essential services are facilitated through the efficiency, accessibility, and transparency that RWA in the blockchain system brings!" said Anthony Diaz, founder and CEO of SmartChain. Go! SmartChain's technology enables RWA interoperability with existing blockchain networks, providing individuals and institutions with an efficient, scalable way to transform tangible assets into digital assets.

"The convergence of these concepts marks a pivotal moment in reshaping the financial landscape for inclusion and sustainability," he added. The company is backed by technology supporters such as Animoca Brands, Sequoia Capital and Lightspeed, and aims to support a stronger and fairer financial ecosystem through new digital technologies.

02 Strengthen ESG investments

The potential of real-world assets to advance basic services for all goes beyond simplifying service delivery. In the big picture, it also aligns with the fundamental principles of environmental, social and governance (ESG) investing as well as the Sustainable Development Goals.

New technologies provide a powerful tool to ensure that governments, businesses and institutions adopt socially responsible practices. As a result, real-world assets can also be incorporated into ESG reporting frameworks, providing investors with verifiable data on the social and environmental impact of their investments.

Some examples of this include transparent and digital tracking of water rights or carbon credits, which can incentivize conservation efforts and encourage environmental stewardship. Another example is transparency and accountability in trade practices, which can encourage fair trade. It also empowers consumers to make more socially conscious, more acceptable choices.

This coincides with the recent shift in consumer perception of social responsibility. A recent McKinsey report found that 66% of respondents and 75% of millennial respondents consider sustainability when purchasing products or services. Customers prefer brands that align with their values and priorities.

Given the importance of environmental and sustainability issues, businesses must demonstrate their efforts, for example in reducing their carbon footprint. "Digitalization remains critical, and businesses must address the growing sustainability concerns of consumers if they are to secure their future," the report states. "

03 Technology is a force for social good

According to Ye et al.'s academic research, "the impact of fintech on poverty reduction is much stronger in low-income provinces than in high-income provinces. "The study identifies the advantages of applying new technologies to poverty alleviation cases. "Specifically, for every point increase in fintech adoption in high-income provinces, poverty decreases by 10 percent, while in low-income provinces, poverty decreases by 20 percent."

By promoting fractional ownership, streamlining supply chains, and enhancing community participation in decision-making, new technologies facilitate the delivery of essential services in a more sustainable way. This can include the ability to track resource usage, verify the origin of goods, and measure results against environmental, social and governance indicators, thereby empowering stakeholders and beneficiaries.

The transformative power of new technologies harnessing RWA goes far beyond access to capital and efficiency. Platforms such as SmartChain AI leverage advanced blockchain technology to unlock previously inaccessible or illiquid markets, promoting a transparent, connected, and prosperous global economy. At the same time, transparency leads to accountability, ensuring that investments in environmental, social and corporate governance, and essential services translate into tangible social impacts.

The author of this article, O Peiqi, is a member of the Fintech Committee of the Smart City Alliance and a contributor to Forbes China.