How Blockchain Can Be a Catalyst For Groundwater Trading In California?

There’s currently a massive problem of overdrafted aquifers in the state of California, which is leading to gradually sinking of the region.

With each day, this becomes an extremely pertinent problem, since all that sinking cumulatively leads to roads cracking, canals failing and a general waste of very fertile area. Whenever there is a drought, the farmers look to secure as much water as they can draw up, to protect their crops.

There is no regard for this overdrafting’s long term consequences and major repercussions during any future droughts. There is not an endless supply of water underneath those lands, so we need to find a way to conserve it.

Well it seems like the state has taken notice, and is launching new state rules to address this issue. The new rules would make it possible to sell groundwater to neighbors, who can make better use of it. It would also encourage farmers to switch to a less water-intensive crop, and encourage groundwater conservation.

Alex Johnson, fund director for the Freshwater Trust, a conservation non-profit, has partnered with IBM and a company called SweetSense, to deploy basic, solar-powered sensors, which originally helped in monitoring creaky groundwater pumps in East Africa. The sensors will be used to track how much water is flowing in real-time.

This data that is significant and is being recorded in real time, will be sent via pint-sized satellites known as cubesats, developed by a startup called Swarm. This data can be used by the farmers to trade their water on a blockchain platform. This is where blockchain comes in.

Once ground water trading becomes a full fledged market in California, which it is expected to become, blockchain can be a very handy platform where this entire trade can take place. So far, there hasn’t been much progress toward setting up those markets.

There are however some challenges regarding regulations, because of this trade’s novel and unique nature, but that can be easily overcome if the state’s administration decides on how to implement statuettes. Blockchain technology can truly help the groundwater trade blossom in California.