The Algorand smart contract platform plans to create a carbon-negative network by implementing a “sustainability oracle” in partnership with ClimateTrade, in a move that could make blockchain adoption greener.
The partnership, which was announced on Thursday, allows Algorand to notarize its on-chain carbon footprint, and then lock the equivalent amount of carbon credits into a so-called green treasure.
Silvio Micali, founder of Algorand, said his company is focused on sustainability in an era of increasing adoption of the smart contract protocol.
“As this period of hyper growth continues, we find it crucial to operate at a negative carbon level. Indeed, sustainable growth is much better than growth, ”he said, adding:
“We understand that the mechanisms for measuring the environmental impact of a global, decentralized and widely used blockchain are nuanced and complex.”
Climatetrade is a Spanish financial technology company that secured over $ 1 million in start-up investments last year. The company is creating a CO2 market that allows companies to track their emissions in pursuit of sustainable development goals. The company has already entered into partnerships with large companies including Iberia, Melia Hotels, Cabify and others.
This is not the first time that Algorand and Climatetrade have worked together. As TBEN reported in December 2020, ClimateTrade is building its CO2 offsetting technology on top of Algorand through platform flexibility and low transaction fees.
Algorand and other proof of stake protocols attempt to showcase the greener side of blockchain technology. The emergence of Bitcoin (BTC) as a viable monetary system is not cheap from a carbon emissions perspective. It is estimated that the Proof of Work Network mining produces 45.34 megatonnes of carbon dioxide per year.