Blockchain
The continuous stream of data from
the IoT sensors is reported directly to a
blockchain platform. A blockchain works
by distributing its content, or ledger,
across multiple servers and storage facil-ities.
Multiple users within the blockchain
have exact copies of the ledger and they
participate in confirming transactions in-dependently.
Furthermore, all new trans-actions
are linked to the history of trans-actions,
creating long and strong chains
of actions. This decentralized approach
provides transparency and minimizes
corruption of the system. Additionally,
all transactions are encrypted for greater
security and privacy than available with
traditional banking.
The blockchain is an ideal technology
for groundwater trading platforms and
water management broadly. As each action
is taken with a water share, the details
of that action are encoded securely and
unalterably into the chain of information,
making it forgery-proof. Additionally,
digital contracts can be coded into the
blockchain to act as smart contracts,
meaning that individual users can exchange
shares directly when preconditions are
met without the need for a third-party
agency as an intermediary. Blockchain
technology most famously underpins
cryptocurrencies, but it is likely to be
valuable for a wider range of applications
22 SOURCE spring 2019
The groundwater share trading pilot program tests the integration of low-tech groundwater well sensors into
a blockchain-enabled platform to provide accurate measurement of groundwater use and to secure trades of
groundwater shares.
— such as groundwater management,
where water shares become traceable with
monetary value.
Building a Robust System for
Groundwater Management
The Solano Subbasin pilot program
is engaging with multiple stakehold-ers
— local water agencies, GSAs, irri-gation
districts, conservation districts,
nonprofits, farmers, policy experts and
technologists — to develop a prototype
dashboard for groundwater trading.
Local water users will be able to trade
shares directly within the trading frame-work
developed by a GSA, thereby mit-igating
adverse effects, including water
quality and water table degradation that
may impact drinking water quality or
groundwater-dependent ecosystems.
Over the next two years, the team
will assess the value of these technologies
to support and create assurances around
tamper-proof groundwater monitoring,
trading and banking, and assess the
ability to rapidly scale a system at a
subbasin level. A robust groundwater
trading system holds strong potential
for becoming a key management tool for
achieving groundwater sustainability
throughout California’s stressed aquifers.
Beyond SGMA compliance, there
are other possible applications for
this system. California also has new
regulations around surface water runoff
on irrigated lands. The unobtrusive
technology in this pilot could potentially
assist in calculating nitrate application
from irrigation water to help farmers
balance fertilizer application to fields.
Whether making use of IoT,
blockchain or other technologies, the
success of groundwater trading hinges
on being able to accurately measure
and report groundwater use and to
securely trade groundwater shares. This
innovative pilot program is looking
to better understand how the latest
technology can support better water
management. S
Danielle Dumont manages the
marketing of The Freshwater
Trust’s consulting and anal-ysis
services to bring mar-ket-
based restoration solutions
to those who can take measured actions to
affect freshwater.
Becky Rittenburg manages The Fresh-water
Trust's conservation projects
in California, where she works with
partners to link communities, work-ing
lands, and groundwater-depen-dent
ecosystems through SGMA-related efforts.
This article is based on an article first published in
The Water Report #180 (February 15, 2019).
BIG IDEAS
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