IBM and Veridium Team Up For a New Blockchain Project Which Aims to Offset Carbon Emissions
IBM has carved out an innovative approach to offset the effect of carbon dioxide release and make an environmental impact. For this purpose, Veridium and IBM have come together in a bid to tokenize carbon offset credits using Stellar blockchain. The tokens will be launched later this year. Carbon offset credit is quite a familiar mechanism, which is an effective way to cut down carbon emission, which is a key factor that causes global warming.
Now, the questions arises as to how a carbon credit can be used to offset the effect carbon dioxide emissions? When the carbon credits are purchased or traded, the investments received are employed to reduce emissions in various ways, for an instance, such investments are used to strengthen the renewable energy resources or carbon sequestration.
Carbon Sequestration is a process by which carbon dioxide is removed from the atmosphere, which is held in a solid or liquid form. But things get a bit tricky as trading high-quality carbon credit is quite tedious and complex. The possible reason behind such complexity in trading with carbon credits is that they are over-the-counter transactions, which eventually slows down the whole process. Thus, specifically, for this reason, the tokenization of carbon offset credit is introduced.
According to the officials of Veridium, such tokenization will have various advantages, besides making the whole trading process simpler. The token protocol introduced is apt enough to automatically calculate the amount of carbon credit that is to be purchased by a company to offset the calculated carbon footprint of a given product.
IBMs’ head of blockchain solutions and financial services came up with a statement, according to which, IBM sees a potential opportunity, in Veridium’s token to combine its network with the Stellar’s publicly available blockchain and bring forward more innovative ideas as to how such assets can be turned into tokens that can be aligned with other kinds of transactions.