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Algorand goals to transform community transaction charges into carbon offsets

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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 payment inside its blockchain community and robotically course of it to buy verified carbon credit at ClimateCommerce, a blockchain-based carbon offset market.

According to Algorand Foundation CEO Staci Warden, the transfer will permit the community to scale whereas nonetheless being carbon damaging. Warden instructed Cointelegraph that the good contract will make sure that their blockchain stays eco-friendly within the long-term and hopes that different companies do the identical. 

“We hope this encourages our partners and other blockchain protocols to lower their carbon footprint,” stated Warden. She defined that each one tech corporations have a duty to assist construct a sustainable future, and their crew is joyful 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 stated that:

“The industry is moving in the right direction by adopting proof-of-stake as the preferred consensus mechanism. While there are certainly valid criticisms against Bitcoin and proof of work, the future is bright.” 

Related: Blockchain and oracles will help clear vitality transition, research claims

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

Meanwhile, in an try to fight the consequences of local weather 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 Climate Coalition, supplies local weather insurance coverage to farmers and permits them to be compensated in the event that they ever get affected by pure disasters.