Algorand intends to become a carbon-negative blockchain
Algorand has partnered with ClimateTrade which helps companies offset their CO2 emissions and finance climate projects
Algorand announced in a press release yesterday that its blockchain is fully carbon-neutral, with an architecture designed to be as efficient and green as possible. The blockchain is now improving the efficiency of its sustainability efforts through a partnership with ClimateTrade.
Spanish fintech company ClimateTrade helps companies offset CO2 emissions and finance climate change projects to achieve their sustainability goals. It provides the carbon markets with transparency and traceability and is currently working on over 150 projects with more than 20 companies including Telefónica, Iberia, Cabify, and Melià Hotels.
ClimateTrade chose Algorand as its primary infrastructure layer last year due to the network’s flexible architecture, low transaction fees, and scalable transactional performance.
CEO of ClimateTrade, Francisco Benefito, commented, “Clean energy and addressing climate change are priorities for the United Nations, global organizations and governments alike. Algorand has a very low carbon footprint to begin with, and we are inspired by the leadership role the organization is taking to ensure the next generation of blockchain adoption is environmentally friendly.”
Algorand achieves this low carbon footprint through its pure proof-of-stake consensus mechanism, which requires far less computational power or electricity than the energy-intensive proof-of-work mechanism. In fact, initial analysis suggests that 2 million times less CO2 is emitted when digital assets are created or transacted on Algorand compared with other blockchains.
Algorand’s Founder, Silvio Micali, explained, “Algorand is experiencing accelerated adoption and network expansion. As this period of hyper growth continues, we find it crucial to operate at a carbon-negative level. Indeed sustainable growth is way better than growth. We understand that the mechanics of measuring the environmental impact of a global, decentralized and widely used blockchain are nuanced and complex. That’s why we are teaming up with ClimateTrade to continue and double-down on our eco-conscious efforts.”
With the help of ClimateTrade, Algorand will employ a sustainability oracle to help reach its carbon-negative goals. The oracle will ascertain Algorand’s carbon footprint for a set number of blocks and the equivalent amount of carbon credit will be locked into a green treasury as an Algorand Standard Asset (ASA) through the use of advanced smart contracts.
In addition to ClimateTrade, Algorand has also been adopted by sustainable organisations GlobalCarbon Holding and PlanetWatch, which was yesterday praised along with Algorand by CERN as part of Earth Day.