The debate continues to rage on the best practices and strategies necessary to collectively reduce carbon emissions. Blockchain technology can help.
While cryptocurrencies grow in popularity, so does the debate about their energy consumption.
Research has claimed that miners' energy consumption habits could lead to levels of carbon emissions that could interfere with the mitigation of national climate change
Other figures such as Jonathan Koomey of Stanford emphasize that there is not enough research and available data to be certain of the amount of energy it consumes.
Despite the debate on energy consumption and emissions, many see blockchain as a way of opening traditionally centralized carbon markets to a wider variety of actors – possibly accelerating the transition to a low-carbon world economy. carbon.
Combating pollution with Blockchain
to climate change and carbon production focuses on creating legislative agreements and compliance mechanisms to reduce emissions and lend sustainability and efficiency projects.
The United Nations announced the Coalition for Climate Change (CCC) in January, designed to study and study how blockchain can help combat climate change.
CCC Members Will Examine Ledger Technologies and Implement Pilot Projects to Test Use Cases
Otherwise, a great deal of debates and discussions within the UN have revolved around the & rsquo; Paris Agreement, which has been the subject of heavy criticism in recent months.
Some startups, like the Blockchain for Climate Foundation (BFC) in Canada, are trying to use the blockchain to build an instrument that can achieve one of the major goals set out in the agreement.
The article 6.2 proposes the idea of a & # 39; unit impact carbon transfer value, called the Outcome Transfered Mitigation Outcomes (IMTO). The end result would be the creation of a system that links the carbon accounts of each nation together.
BFC founder Joseph Pallant states that his team's goal is "to support and accelerate this goal" using Ethereum to track IMTOs through smart contracts.  He says there would be enough data within each token so that everyone is clear about the "provenance and eligibility of each ton of emission reductions." BFC has also developed a draft of "Unique Fungible Tokens" which allows the authenticity of carbon credits to be validated.
Moving to a Low Carbon Economy
A handful of companies, such as Veridium, have explored the idea of tokenize carbon offset credits. The company collaborated with IBM to further this effort with the stellar blockchain.
Buying traditional carbon credits is often a lengthy process, but Veridium Foundation executive director Jim Procanik thinks the blockchain is the "perfect fund" for a more liquid market.
Another company called Poseidon also uses Stellar to reduce barriers to entry in the carbon credit market.
Poseidon recently collaborated with Ben & Jerry's to cut carbon credits into microtransactions, so ice cream connoisseurs in London can offset their carbon emissions in real time. The project has so far protected over 4,000 trees.
What do you think should be the role of blockchain in the fight against climate change? Let us know in the comments below!
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