Algorand aims to convert network transaction fees into carbon offsets

Proof-of-stake blockchain protocol Algorand will implement a wise contract that may automate the offsetting of the community’s carbon emissions.

In a current announcement, Algorand revealed {that a} new sensible contract would take a portion of every transaction payment inside its blockchain community and robotically course of it to buy verified carbon credit at ClimateTrade, a blockchain-based carbon offset market.

In line with Algorand Basis CEO Staci Warden, the transfer will enable the community to scale whereas nonetheless being carbon destructive. Warden advised Cointelegraph that the sensible contract will make sure that their blockchain stays eco-friendly within the long-term and hopes that different corporations do the identical. 

“We hope this encourages our companions and different blockchain protocols to decrease their carbon footprint,” mentioned Warden. She defined that every one tech firms have a duty to assist construct a sustainable future, and their group is joyful that they’re able to present a blueprint on how this may be achieved.

The CEO additionally praised the blockchain trade’s efforts to be more eco-friendly. Warden mentioned that:

“The trade is transferring in the suitable path by adopting proof-of-stake as the popular consensus mechanism. Whereas there are definitely legitimate criticisms towards Bitcoin and proof of labor, the longer term is shiny.” 

Associated: Blockchain and oracles can help clean energy transition, study claims

Again in 2021, the Algorand group made a pledge to be a carbon-negative blockchain. By its partnership with ClimateTrade, Algorand was in a position to log its on-chain carbon footprint and put an equal quantity of carbon credit in a inexperienced treasury. 

In the meantime, in an try and combat the effects of climate change, insurance coverage agency Lemonade partnered with blockchain firms to kind a decentralized autonomous group (DAO) that goals to assist African farmers from local weather change results. The DAO, referred to as the Lemonade Crypto Local weather Coalition, offers local weather insurance coverage to farmers and permits them to be compensated in the event that they ever get affected by pure disasters.