If your business is committed to take a stand in the fight against climate change by reducing or offsetting its Carbon Footprint and toxic emissions, consider searching for platforms backed-up by blockchain. Several blockchain projects like ClimateTrade can help you taking steps forward to move to a net zero model, engaging clients, providers, stakeholders while generating a real and positive impact in the planet.. This article will look at how blockchain technology works and how it can help offset carbon footprint.
How does Blockchain work?
Before understanding how and why these technologies can bring positive impact to the environment, we need to look at their operating principle.
The principle of blockchain technology
The blockchain is a decentralized and open-source database. It is made up of registers (blocks) connected to each other, thus forming a chain. Each register is made up of several transactions of a variable nature (asset exchange, vote, digital contract, etc.). Its operation is based on the principles of cryptography, decentralization, and consensus, thus ensuring almost total security (unalterable data).
What is this technology for?
The blockchain answers the following question: How to exchange peer-to-peer value in a secure way? If the Internet is considered a major technological innovation in our way of communicating, the latter does not allow us today to exchange an element of value without going through an independent third party. This is the problem that the blockchain solves. Its decentralized operation based on transaction verification by millions of computer computers makes it an almost incorruptible trusted value exchange platform.
What is its connection with cryptocurrencies?
Blockchain is a multidisciplinary technology, therefore, it can be applied in many sectors not only in the crypto world On the other hand, the principle of cryptocurrencies or crypto-assets is necessarily linked to the principle of blockchain. For a currency to survive, it must be able to circulate. Each cryptocurrency transaction is therefore notified in a register belonging to a blockchain. Each crypto-asset has its blockchain with its type of consensus algorithm.
The main objectives of using the blockchain for cryptocurrencies are to make financial flows independent (the blockchain does not belong to anyone) while securing transactions, as well as avoiding the use of a traditional trusted third party (the banks).
How blockchain technology can help offset the carbon footprint
Due to its open-source nature and its decentralized operation, blockchain technology brings almost total transparency to what could be the digital carbon market of tomorrow. It can be managed by its own users with pre-defined rules in a “white-paper”, namely a book of factual information containing all the rules.
The other positive aspect of such technology lies in the very operation of the blockchain. This would facilitate the negotiation as well as the monitoring of carbon credit of the offset project to the company that purchased them. Thus, no cheating or drift will be possible because all flows will be centralized and the data unalterable.
In practical terms, the transparency and traceability provided by the blockchain technology guarantees that the investment you are making in sustainable projects when offsetting your carbon footprint will reach its destination, therefore, will land in the pocket of the project developer who is working every day to promoting new sources of renewable energy, protecting forests and the biodiversity, cleaning the oceans, and helping the growth of local communities that depend on these projects.
Disclaimer: This article contains sponsored marketing content. It is intended for promotional purposes and should not be considered as an endorsement or recommendation by our website. Readers are encouraged to conduct their own research and exercise their own judgment before making any decisions based on the information provided in this article.
