Published on 24 November 2018 |
by Michael Barnard
24 November 2018 of Michael Barnard
Along with our normal daily coverage for clean technology news, CleanTechnica it also produces in-depth reports on various aspects of clean energy and clean transport. One of the emerging technologies we cover is not directly a clean technological innovation is blockchain, which promises to be a catalyst for innovation in the green economy in the near future. Blockchain is probably best known to the public as "having something to do with cryptocurrency and Bitcoin, right?", Which is partially correct, but the technology itself has a wide range of applications, some of which will be crucial in the fields of distributed renewable energy , network management and energy storage, and smart contracts, among others.
The full report Blockchain: an enabling innovator for clean technology, which was published in July, is a deep immersion in the blockchain and its potential, and we will publish further extracts from the report in the coming weeks. (Read the last episode here.)
Nori, a company that has recently emerged from stealth, is creating the Nori token. It is a cryptocurrency token that represents a ton of CO2 removed from the atmosphere and seized in one of the many possible ways. This is not a cap-and-trade or carbon-tax system, but a market mechanism that enhances the removal of tons of CO2. Like carbon offset programs for flyers and pilots, it allows people and businesses to offset their CO2 emissions with the guaranteed removal of CO2 from the atmosphere.
Presidents have both experience in this space. Christophe Jospe has worked with dr. Klaus Lackner at Arizona State University for carbon capture solutions in the air. At the beginning of 2017 Paul Gambill created a first iteration of this specific carbon market for regenerative agriculture during a hackathon and launched a community group focused on carbon removal.
They have a methodology and approach to validate seizure based on rigorous academic, technical and experiential knowledge, and Lackner is a formal consultant for Nori.
Full disclosure: I was involved with Jospe in his early days in determining how he would establish his entrepreneurial path prior to the pin blockchain and continue to communicate with Jospe and Gambill. I have no financial participation in Nori of any kind.
The following questions and answers have been slightly modified.
What is the status of Nori today? How close are you to a white paper and a minimal product?
Nori has 8 full-time members of the team and aims to launch a working prototype by the end of 2018. At this time we are focusing on creating an operational blockchain that allows buyers to purchase carbon removal certificates from suppliers with NORI tokens that we will create. The other side of this is working with potential suppliers (eg farmers) and our data aggregator partners to ensure there is an adequate inventory on the market at launch.
Details on our go-to-market strategy are in our white paper. The document was shared with the participants of Reversapalooza on 26 and 27 April 2018 and will be made public later.
What is the governance model you have put in place to ensure that your offer is not abused or abused?
The key question on carbon removal is how to make sure that CO2 is removed and stays where it was put. Each different methodology must have its own rules and parameters that define how CO2 is measured. We are following the standards of open source software to have public conversations about how they are defined in our Github.
Regarding cryptocurrencies, we are adopting two approaches:
- Ensure that we are able to get NORI tokens for as many different owners as possible.
- By closing the founder's tokens on a 4-year-old dressing plan with a one-year fall, similar to how many start-ups deal with the bags.
What is the incentive model you have put in place to balance the value through the blockchain set of participants?
Our incentive model is simple. Entities that can remove carbon dioxide from the atmosphere and sell carbon removal certificates are paid for with NORI tokens. Verifiers will be paid by both carbon removal certificate suppliers and CRC buyers through our market.
How are you protecting from significant reductions in the value of cryptocurrency as seen in Q1 2018?
Our strategy for this is to make the market operational as quickly as possible, so that the value of the NORI token becomes more closely linked to the value of carbon removal in the real world than closely related to the value of bitcoin. We are working to build both sides of our two-sided market in order to guarantee the availability and demand existing at the time of launch.
Is the test of the game a consensus approach to the final state or an intermediate step like the test of work, and if so, what are the consensus approaches that you expect to dominate?
We are very excited about the test of the pole that reaches the block of Ethereum. We trust the community to implement it well and, if it needs improvement, adapt to the flight. We are particularly excited about PoS because of its potential for reducing the overall environmental impact and energy use that is needed to manage the blockchain job test.
Which key metrics or key performance indicators that are considered critical to your offer and business model?
The metrics on which we judge our success are clear and coming from our market:
- Number of tons of CO2 paid to be removed
- Unique number of CRC buyers and change over time
- Unique number of CRC providers and change over time
- Frequency of buyers who return for additional purchases
- Frequency of suppliers returning to sell additional CRCs.
For now, we focus primarily on increasing the number of potential suppliers.
As a mover in advance, what advice would you give people to consider the idea of entering the blockchain cleantech space in the next year?
Talk to your customers and network participants in advance and often to enter their feedback in product design as soon as possible.
Stay tuned for more excerpts from Blockchain: an enabling innovator for clean technologyor view the summary and request a complete report at https://products.cleantechnica.com/reports/