Cryptocurrency

Algorand aims to convert network transaction fees into carbon offsets

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

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

In accordance with Algorand Basis CEO Staci Warden, the transfer will enable the community to scale whereas nonetheless being carbon detrimental. Warden informed Cointelegraph that the good 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 each one tech firms have a accountability to assist construct a sustainable future, and their crew is glad that they’re able to present a blueprint on how this may be achieved.

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

“The business is transferring in the correct path by adopting proof-of-stake as the popular consensus mechanism. Whereas there are definitely legitimate criticisms in opposition to Bitcoin and proof of labor, the long run is brilliant.” 

Associated: Blockchain and oracles will help clear power transition, examine claims

Again in 2021, the Algorand crew made a pledge to be a carbon-negative blockchain. Via 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 fight the results of local weather change, insurance coverage agency Lemonade partnered with blockchain firms to type 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.