BUSINESS MODEL INNOVATION

A1. Social mantra one-liner

This mantra signifies a commitment to a sustainable future by leveraging blockchain technology to ensure transparent and effective tree-planting initiatives.

A2. Product/service presentation

And about our service, we demoed an app named “VerdeChain” to provide a better understanding of its functions

 Firstly, users need to download the VerdeChain app to their smartphones. After that, there will be a screen about the planting site, showing the information about the date, time, location as well as planting tasks of the day.

 

And if everything is correct, please press the button “NHẤN ĐỂ THỰC HIỆN” to get started Next, u need to check the location on the map to see whether it’s correct or not, if yes, please press button “CHỤP ẢNH” to take the photos

 

And on step 5, users’ duties are to take photos of the current situation of their trees and give us some clear description about the problems that their trees are facing. After filling all the descriptions, please press button “HOÀN THÀNH” to complete this step

If you see this announcement after pressing button “HOÀN THÀNH” on the previous step, you successfully upload your trees’ information to VerdeChain

VerdeChain will be responsible for the next step. We will upload the data provided by the planters onto the VerdeChain network which is a VerdeChain-based platform in which planting data will be minted into dynamic NFTs

 

 And these NFTs are then stored or delivered to the sponsors and VerdeChain will use NFTs data to make ESG report for sponsors

 

Responds

1.     Client needs/wants
2.     Detailed reporting and monitoring

–       Clients usually want to seek detailed info & regular updates on the status of trees they have sponsored. Therefore, This app helps clients monitor the progress and health of their trees, ensuring transparency and ongoing engagement

2.     Social impacts 
3.     Environmental sustainability

–    Our primary mission of tree planting directly contributes to environmental sustainability. Planting trees helps combat climate change, enhances biodiversity and improve air quality, creating a healthier and more sustainable environment

 

Feedback

Although we have not applied this app yet, we have received a lot of positive comments and feedback about the function of this app from environmental-concerning people

 

B1: Business model overview

So, the question here is, how VerdeChain will actually be executed. We focus on the three most important elements of a successful and sustainable solution: Viable, Desirable and Feasible. 

 

For desirable reasons, there’s a rising demand for ESG information to prove a company’s impact over a long time horizon, according to International of Accountants research. This is evidenced by four factors

 

For viable reasons our Revenue Streams come  from Commission fees from sponsors for connecting them with planters and providing project data are the primary revenue source. VerdeChain could explore additional revenue models like carbon credit trading or data analytics services.

 

For a feasible reason, we focus on technology and partnership. Blockchain technology is already available. For us, Building relationships with planters and establishing a network of trusted partners is crucial and in the future. VerdeChain needs to demonstrate our ability to vet planters and ensure the quality of afforestation projects.

 

B2: Economic value for customers

When it comes to economic value propositions of the business model, there are 3 factors clearly defined as follows:

1.     Trust

–       In order to ensure trust between sponsors and planters in afforestation programs, VerdeChain employed NFTs to create an immutable record of tree planting activities. Sponsors can easily keep track of the project and the growth of trees planted in the appointed area. This assurance can significantly increase trust, leading to sponsor engagement and willingness to invest, enhance the project’s funding and sustainability

1.   Transparency:

–       This platform allows sponsors to monitor the usage of their financing and guaranteeing that money invested is ultimately going to where they are supposed to

1.     Trackability:

–       The blockchain technology used in this app enables the tracking of all transactions and activities associated with afforestation projects, ensuring that all parties engaged are responsible for their actions

1.   Sustainability

–       With the aim of fighting against climate change and protecting the Earth, VerdeChain’s afforestation projects bring all people together to actualize our missions 

 

 –       BlockChain has been currently taken into consideration in multiple industries worldwide, especially in Asia. Foreign tech-savvy investors and experts are continuously coming to Vietnam to seek projects using BlockChain to discuss more opportunities for their technology expansion. Therefore, our VerdeChain can gain market differentiation when applying BlockChain into our tree planting service, which is also considered as our competitive advantage. 

 

B3: Target social impacts

What VerdeChain does is also aligned with several  United Nations Sustainable Development Goals (SDGs). From Goal 13 – Climate Action with the ultimate goal of promoting afforestation and combating climate change, to Goal 15 – Life on Land: as VerdeChain is making a huge effort in tackling desertification and land degradation. VerdeChain also contributes to the Goal 17 – Partnerships for the Goals: when VerdeChain’’s platform brings together Planters and Sponsors, creating a community working together to promote afforestation.

 

B4:Feasibility

VerdeChain collaborates with BlockTree – a platform connecting planters and sponsors applying Blockchain and NFT technology in Asia. This partnership provides us with operational and technical support to build our business app. Additionally, we seek academic guidance from VerdeChain’s Coach, lecturers at Foreign Trade University 

 

Our Team members participating in the establishment of VerdeChain has diverse competencies and these competencies are definitely perfect pieces for VerdeChain, specifically:

 

• All of us have comprehensive knowledge about environmental issue and afforestation which means that we can communicate with many partners to increase our effectiveness and receive recognition
• Because this project primarily relate to technology application, our team members have ability to read and analyze data in order to get the accurate outcomes

 

About resources, we will take advantage of support from BlockTree and also collaborate with more potential investors having expertise in technology to increase and enhance the effective operation of our VerdeChain in operations as well as the data accuracies provided to the app users.

 

B5: Profitability

About our profitability, let’s come to revenue model first

In this model

• Sponsors pay money for both planters and our VerdeChain
• Specifically, planters receive donations for afforestation and VerdeChain receive money from commission fee.
• Money is paid directly to planters and VerdeChain and fees will depend on size of the campaign, sponsors requirement for ESG report sponsors

 

About the cost structure

There are 4 primary costs included in VerdeChain’s cost structure, which are:

• Development cost
• Operational cost
• Data management cost
• Administrative cost

 

B6: ESG integration

About ESG: 

VerdeChain’s focus on tree planting promotes biodiversity and healthy ecosystems. This not only reduces deforestation but also combats climate change by increasing CO2 absorption

Socially, VerdeChain creates jobs in local communities and motivates them to participate in tree planting, improving their well-being. By showcasing the environmental and social benefits of afforestation, VerdeChain educates the public and raises awareness about the importance of sustainable forestry practices.

 

In terms of governance, VerdeChain prioritizes ethical practices by eliminating greenwashing through data transparency. By providing Green NFTs, VerdeChain allows companies to showcase its environmental impact. We focus on Asia, a region ripe for blockchain-based afforestation, demonstrating our understanding of the social and environmental landscape. 

 

C1: Crowdfunding/crowdsourcing campaign

 

At the moment, VerdeChain crowdfunding campaign will be focused on 

 

Organizations with ESG Demand: Our platform offers a transparent, immutable ledger for tracking ESG activities, enabling credible reporting and showcasing their commitment to sustainability.

 

Educational Institutions and Social Impact Organizations: We empower universities, schools, and NGOs to engage students and communities in impactful ESG projects. VerdeChain provides a platform for tracking volunteer hours, carbon offset initiatives, and other social impact activities.

 

Below is the image from our pitching session for Pennsylvania University at Foreign Trade University. At this pitching, we have proven the potential of our model as Dr. Lam Nguyen. Pennsylvania has said that he was very impressed with our business model and will definitely sponsor to make positive impacts through foresting activities and will involve his students, as well as his partners in the next campaign, too.

 

At the present time, VerdeChain contributes completely all the donations to afforestation programs and has no profit-produced activities. We are planning to make these initiatives to gain financial support in the future: 

 

• Providing consulting services to clients in the afforestation industry
• Taking a commission on transactions between sponsors and planters
• Preparing ESG report for company with rising demand of proving their ESG contribution

 

C2: Learning Curve

From our presentation for Pennsylvania University, we realized that at the moment, the demand for students or employees to become planters and become a part of the afforestation process is very high. However, they are not able to find any trustworthy party to work in and provide proof for their activities, so that they can report to relevant stakeholders afterwards.Moreover, our field trip to province in Mekong Delta has shown that people at the local region are always willing to take part in afforestation (as our planters), as long as they can see the vision of the planting project and they can receive sufficient financial support. The most important things to bear in mind is the alignment of incentives betweens, sponsors, planters and VerdeChain.


That’s the end of our presentation. Thank you for listening.