Algorithms

Reporting and verification utilize algorithms. Algorithms are a set of instructions followed to solve a problem or accomplish a task (types of algorithms include standard, machine learning and AI). They are used to process data or information. For example georeferenced imagery can be analyzed using an algorithm that detects if a tree is present in that imagery. Another example is an algorithm can choose which data sources are the most appropriate for evaluating a regenerative action based upon how these data sources did previously. This is more efficient than a human could do, reducing the dMRV costs. Previous MRV organizations have developed their own algorithms. Some of these algorithms are open source and will become part of the dMRV system if there is no conflict with the creators in doing so. Oftentimes it is only the MRV organization that developed the algorithm that uses it. Allowing more entities to utilize the MRV algorithm, “algorithms-as-a-service” (AaaS) have arisen as a business model. Aaas allows entities of very small to large financial backing to benefit from them. For example, a small business might not have the resources to hire a data scientist to build and train a machine learning model or maintain the infrastructure needed to store the data that the model would be trained on. However, with AaaS, they can simply subscribe to a service and use the algorithms that have been created by someone else. Now through decentralization, algorithm providers can offer their services in a trust minimized and automated way. Along with that they can help financially support the providers of the data that was used to train that algorithm, which in turn gives data providers an incentive to provide high-quality and unique data that otherwise wouldn’t be available for training. Algorithmic transparency allows regenerative actions to demonstrate the ecosystem services they provide in a trustless, decentralized and immutable manner. Which in turn will attract more ReFi investors to support these actions. The more funding that gets channeled towards regenerative actions, the more the dMRV system is used and with each iteration it improves.