Algorand aims to convert network transaction fees into carbon offsets


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Algorand aims to convert network transaction fees into carbon offsets

Proof-of-stake blockchain protocol Algorand will implement a wise 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 price inside its blockchain community and mechanically 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 permit the community to scale whereas nonetheless being carbon detrimental. Warden instructed Cointelegraph that the good contract will be 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 corporations have a duty to assist construct a sustainable future, and their staff is pleased 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 appropriate course by adopting proof-of-stake as the popular consensus mechanism. Whereas there are actually 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 staff made a pledge to be a carbon-negative blockchain. By way of 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 corporations to kind a decentralized autonomous group (DAO) that goals to assist African farmers from local weather change results. The DAO, known as the Lemonade Crypto Local weather Coalition, gives local weather insurance coverage to farmers and permits them to be compensated in the event that they ever get affected by pure disasters.