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Harnessing Blockchain Technology for Fair and Efficient Water Distribution

Updated: Oct 18, 2023

By Jaya Bijoor

According to the United Nations World Water Development Report, it is predicted that by 2050, approximately five billion individuals could live in regions where water is scarce. About

844 million people, equivalent to one in nine of the global population, need clean water near their homes. Moreover, some individuals experience an unreliable water supply due to certain factors such as agriculture, industry, or the disproportionate consumption of water by wealthier sections of society. With the additional challenge of climate change, water availability is expected to become even more uncertain.

Therefore, carefully managing water resources and prioritizing their distribution for household use is paramount, ensuring everyone can access this precious resource. Blockchain technology can be used in water resource management and distribution to track water rights and usage, enabling efficient and fair allocation and distribution of water resources.

Different water management areas can benefit from implementing blockchain technology, such as managing water rights, monitoring water quality, installing smart water meters, and facilitating water trading. Data on water usage can be collected and recorded on a blockchain network using sensors, allowing better allocation of water resources.

Distributing Water Rights: Water rights include the legal permissions to utilize water from a specific source. Water rights are allocated to regions based on past usage, which can

result in an inequitable allocation. A transparent and secure digital blockchain-based ledger can manage water rights and resource usage. This ensures the fair distribution of water resources among communities.

Assessing Water Quality: Water quality is crucial for human survival and environmental preservation. Real-time water quality monitoring using blockchain technology can record

water quality at different supply chain stages. Possible contamination sources can be identified, spurring quick action to solve any issues.

Recording Water Usage: Smart water metering relies on sensors and IoT devices to monitor real-time water usage. IoT stands for the Internet of Things. IoT connects various everyday objects, such as cars or appliances, to the Internet, allowing them to be controlled, monitored, and interact with each other without human intervention. Blockchain technology can monitor and record water usage data from smart meters, improving water resource management for utility companies and consumers. Blockchain-based ledgers can reduce water wastage and promptly identify leaks or related problems.

Monitoring Water Allocations: Water trading involves buying and selling water rights among stakeholders. Blockchain technology can create a secure and transparent platform for water trading, allowing buyers and sellers to exchange water rights in a tamperproof way. This improves the fairness and efficiency of the allocation of water resources. There are several benefits to using blockchain technology to manage water resources. First, it establishes a transparent and secure system that records water usage data, allowing for better monitoring and efficient distribution of water resources. Second, blockchain technology creates a digital ledger that documents ownership and usage. In conclusion, blockchain technology streamlines water trading by offering a trustworthy and transparent platform for buyers and sellers to exchange water rights.



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