Algorand, the blockchain infrastructure development firm behind the crypto industry’s first pure proof-of-stake foundational blockchain, has announced the launch of an automated carbon offsetting functionality based on a self-sustaining smart contract.
According to Algorand, this move is aligned with Algorand’s core vision, in which sustainability forms a central aspect of its ecosystems. In the past year since it announced its carbon neutrality initiative, Algorand has set out to expand its energy-efficient network with a reliable proof-of-stake consensus mechanism that has allowed it to deliver speed, security, and instant finality for transactions over its blockchain.
Algorand’s latest forays into carbon neutrality is a result of its recent partnership with ClimateTrade, a CO2 emissions transparency and traceability monitoring body. With this partnership, Algorand has designed functionalities for verifiable carbon credits on its blockchain, with a smart contract deployed to leverage a portion of the network’s transaction fees to purchase required carbon credits based on the network’s scale. This system has also been adopted by global organizations such as PlanetWatch and GlobalCarbon Holding. Algorand has also disclosed that it is partnering with other climate-focused organizations such as Climate Ride, Premios Verde, Envision Racing, and SailGP.
“Climate change is among the most pressing issues the world faces today. Efficiency and a minimal energy consumption footprint simply must be table stakes for all enduring future technology. Algorand, a blockchain leader in this space, is seeing tremendous adoption from eco-conscious brands, creators, and developers, and we’re proud to take another step forward in our commitment to sustainability with the introduction of smart contracts permanently enforcing our carbon offsetting pledge,” shares Naveed Ihsanullah, Vice President of Engineering Research at Algorand.
Scientific criticism leveled against proof-of-work blockchains such as Ethereum and Bitcoin has led to the development of proof-of-stake consensus algorithms. Ethereum, on this matter, is also shifting to a proof-of-stake consensus, with layer 2 blockchains soon to follow and align with the Ethereum Virtual Machine standard. Designed and founded by Silvio Micalio, Algorand’s consensus algorithm is the industry’s first pure proof-of-stake (PoS) blockchain in that it was created and launched with PoS at its core.
According to Algorand, its blockchain produces several magnitudes less of carbon emissions, while initial analysis of its block history has shown that it can reduce up to 120 million times of carbon emissions, compared with previous algorithm designs such as proof-of-work consensus mechanisms, in particular the Bitcoin blockchain.
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Source: https://cryptodaily.co.uk/2022/04/algorand-launches-smart-contract-automation-for-carbon-offsetting