The criticism of cryptocurrencies’ energy consumption and its related carbon footprint is a major challenge for all players in the crypto space and is being addressed at both a corporate and regulatory level by mandates such as the European Union’s Sustainable Finance Disclosure Regulation (SFDR), which came into force in January 2022. Bitcoin and other digital currencies are generated and verified by decentralized global networks of computers solving math problems of increasing complexity. Crypto mining requires massive amounts of computing energy, producing staggering environmental impacts. All told, Bitcoin emits over 57 million tons of CO2 annually according to Forex Suggest, a South Africa-based site that provides education on trading and financial markets. The environmental costs of using cryptocurrency could be drastically reduced by combining crypto mining with carbon offsets.
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In line with these developments, Evergreen Carbon Credits (ECC) has developed a unique purchasing and verification system of certified carbon credits utilizing blockchain technology and Non-Fungible Tokens (NFTs). The individual or business can select the amount of carbon credits they intend to purchase using the online calculator and an NFT certificate of the purchased amount of carbon credits is delivered to their digital wallet. Another key component of the ECC system is they accept cryptocurrency for payment. “We have integrated a seamless, digital transaction as a means to reduce additional energy consumption,” said Mark Davis, ECC’s CTO, “crypto miners and investors have the ability to offset their carbon footprint without converting their newly mined currencies into fiat, (US Dollars).”
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In addition to crypto miners offsetting their carbon footprint, ECC’s NFT carbon credits are a valuable resource for traders and cryptocurrency exchanges to become carbon neutral. According to Statista, one Ethereum transaction consumes the same amount of energy as 200,000 Visa transactions. With the ease of use and cryptocurrency friendly NFT carbon credits, the growth in crypto transaction energy consumption can be mitigated. ECC offers a proactive approach to becoming carbon neutral utilizing blockchain technology.
With government agencies adding more regulations to crypto mining, monitoring, reporting and verification, (MRV) is an essential part of many of these sustainable markets. Integrating public blockchain and NFTs into a mining operation creates transparency. Because the transaction is recorded on the blockchain and an NFT is generated, no carbon credits can be duplicated and resold on the open market after they are retired. All high-quality certified carbon credits listed for sale are issued by a reputable organization and are third-party authenticated.
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