IBM collaborates with Veridium  to combine crypto with environmental credit trading 9334
News
Sharat Chandra
May 15, 2018 at 7:34 PM

Veridium Labs is an environmental fin-tech company that has created the world's first social and ecological impact offset token on the Stellar Blockchain. It has joined hands with IBM to design a blockchain network for keeping track of entities who deal in buying and selling of carbon credits.

Investopedia explains carbon credit as "A carbon credit is a permit or certificate allowing the holder to emit carbon dioxide or other greenhouse gases. The credit limits the emission to a mass equal to one ton of carbon dioxide. The issuance of carbon credits aims to reduce the emission of greenhouse gases into the atmosphere." The International Panel on Climate Change (IPCC) introduced their carbon credit proposal as a market-oriented mechanism to slow worldwide carbon emissions.

"Blockchain based digital assets, or tokens, enable innovative ways to buy and use the underlying carbon offset since they can move and settle swiftly across networks," IBM said of the project. "Integrating the entire process of carbon accounting and offsetting into a digital token on a public, permissioned blockchain network can help make measuring environmental impact, transferring ownership rights, and redeeming the underlying carbon offset more efficient."

With global warming threatening the very existence of longevity of our ecosystem, any step towards the reduction in carbon footprint should be welcomed. It's heartening to see technology companies taking the lead in leveraging technology for combating climate challenges.

 

Image via Veridium Labs Facebook Page