Almost all of us relate blockchain technology with only bitcoin and other cryptocurrencies. A lot of people who have heard of the terminology really don’t know that blockchain technology can be used in a large variety of areas. In short, blockchain technology is a type of system that allows exchange of information in encrypted pathways. It’s used for tracking banking payments, creating public ledgers for compiling data on sales, cryptocurrencies and so on. This technology allows exchange of information with little to no chance of allowing a third party to switch, sell, access or do anything that the first party doesn’t allow to be done to the initial set of data. Now here comes the carbon market, as very well explained by the name on it’s own, it’s got something to do with carbon emissions. This market allows trading of carbon emissions to support and encourage companies into limiting their carbon footprint. In a weird way, this carbon market is a scheme that allows companies and other entities to technically buy the right to pollute and emit a certain amount of carbon dioxide from each other.
Blockchain technology is a type of system that allows exchange of information in encrypted pathways. It’s used for tracking banking payments, creating public ledgers for compiling data on sales, cryptocurrencies and so on. This technology allows exchange of information with little to no chance of allowing a third party to switch, sell, access or do anything that the first party doesn’t allow to be done to the initial set of data.
This system was created to work on the net-zero by 2050 pledge, and now it has put companies in a bit of a situation. Recreating the way your company works in order to decrease carbon footprint. One part of this system that is slowly being created by a lot of entities in order to sell and buy rights to “pollution” lacks credibility of accurate information. This is where blockchain technologies would come into play. As an auditable system of record, blockchain can create standardization and accountability, resulting in a cost-effective and sustainable method of streamlining operations and tracking, measuring, and managing environmental impact data. Besides the carbon market, another pawn in the play that has been created has been carbon offsetting, where companies and other entities focus on investing into an environmentally friendly project in order to “balance out” their own carbon emissions, for example like investing in green energy in other countries and so on. To be able to properly offset, companies must be able to calculate emissions based on actual measurements that start from the supply chain up to manufacturing and delivery. All this data will be captured by industrial internet of things connected devices, confirmation of pre-agreed terms within companies will be based on real-time measurements and a few other information sources. This will trigger a process of transactions based on data and number and it will not include human guesswork on what needs to be done in terms of offsetting and “giving back”.
