The Verde carbon credit tokens are built on top of the public Stellar blockchain and via a series of smart contracts follow the entire process of accounting for a company's carbon emission and offsetting that pollution.
For the uninitiated, carbon credits are a kind of "permit" that allows an organization or country to produce a certain amount of carbon each year. "Our digital environmental assets are created to help companies and institutional investors purchase and use carbon credits to mitigate their environmental impacts today, and even hedge their potential carbon liabilities risks in the future". The International Panel on Climate Change (IPCC) introduced their carbon credit proposal as a market-oriented mechanism to slow worldwide carbon emissions.
"We're creating a fungible digital asset, a token which part of the goal is to create a market where people can buy, sell, trade and then redeem it for the underlying credits", "By having a liquid market you open up a world of possibilities". IBM has never issued any tokens using a public blockchain before.
IBM will use Stellar for first crypto token on public blockchain
With global warming threatening the very existence of longevity of our ecosystem, any step towards the reduction in carbon footprint should be welcomed.
For a long time, Veridium Labs has been struggling to crack the question of how to trade carbon offset credits in an open market. "Our digital environmental assets are created to help companies and institutional investors purchase and use carbon credits to mitigate their environmental impacts today, and even hedge their potential carbon liabilities risks in the future".
IBM team believes that usage of the public blockchain network is a good opportunity for them to provide their assistance to Veridium in building an absolutely new sustainable marketplace. While Veridium hasn't revealed the names of its own potential customers, InfiniteEarth counts Big Four accounting firm PwC and software giants, SAP and Microsoft among its customers, all of which has their own ongoing blockchain projects, making them possibly suitable adopters. Founded in 1911 as a manufacturer of various types of machinery, it released its first commerical computer in 1964 and by the 1970s had a near-total monopoly on the market. Called the 'cryptographic anchor, ' it could be "embedded into products, or parts of products, and linked to the blockchain".
Last year, IBM joined forces with Stellar to use its native cryptocurrency, lumens (XLM), to clear and settle cross-border payments rapidly in a pilot project. Ripple is also far more centralised than Stellar.