What are Carbon Credits?
A carbon credit is equivalent to one metric ton of carbon dioxide. Every company or business produce some carbon credits as part of production and business operation. So in coming period, the amount of carbon dioxide would be at such a high quantity in the air that every company would have to buy the rights to be able to produce carbon. The companies which produce less carbon can sell those credits to those who have overused their limit.
This is the future of the business. With the deteriorating environment, new technological advancements breaking the mold of what is normal, and exploding pace of new businesses setting-up- blockchain technology companies investing in carbon credits blockchain will reap huge benefits.
The Mingling of Environment and Technology
The blockchain technologies are used in diverse industries. Not just one as often assumed. The industries where the technology is used are healthcare, fintech, genomics, shipping, and energy.
But have you heard about the use of blockchain technologies for the environment?
Yes! Various blockchain technology companies around the world are involved in helping build carbon credits around blockchain.
Who would have thought of this use of the blockchain?
IBM has already announced its collaboration with a financial technology company Veridium Labs Ltd. They are planning to tokenize the credits for the number of carbon molecules produced by business entities and to levy a charge on them. The token is supposed to be traded on the open-source exchange for blockchain which is run by one of the new and upcoming blockchain companies called Stellar.
Another negotiation is on the rounds between Ben and Jerry’s and a non-profit organization Poseidon Foundation which will let customers lessen their carbon footprint with an investment of profits earned on retail sales for the purchase of carbon credits. How Ben and Jerry is easing its impact is by donation of one penny on profits earned on every point-of-sale purchase to Stellar blockchain company. All of this is expected to become a reality in June 2019.
How can Crypto Tokens probably help in this Process?
Veridium Labs Ltd. has a sister company called InfiniteEARTH which distributes the carbon credits called ‘Verde’ tokens. InfiniteEARTH operates Indonesian rainforest spread across 250 square miles. It has received massively important REDD+ (Reducing Emissions from Deforestation and Forest Degradation) carbon edits. Blockchain ledger and blockchain technology companies would be used to keep track of carbon credit data which will help determine the carbon footprint of each company.
Since based on blockchain and data encryption, no data is subjected to change and an easy transaction will help reduce deforestation, pollution, and greenhouse gases emissions- if not to a complete level but at least to some extent.
All of this planning around crypto carbon credits is still a distant prospect. It’s not sure or foreseeable now whether the whole planet would like to come and support this initiative or not. For now, waiting for tomorrow is the only choice we have.