Carbon credits are measurable, verifiable emission reductions from certified climate action projects. These projects reduce, remove or avoid greenhouse gas (GHG) emissions. But they also bring a whole host of other positive benefits, for example, they empower communities, protect ecosystems, restore forests or reduce reliance on fossil fuels. Projects must adhere to a rigorous set of criteria to pass verification by third-party agencies and a review by a panel of experts at a leading carbon offset standard like Verra or Gold Standard.
The current system for buying and selling carbon credits is immensely inefficient. As a result of this project and companies that are off setters of carbon emissions are not receiving the right price within a reasonable time. In the current system there are too many intermediates that all want a piece of the pie. Blockchain is a technology that can resolve all these issues.
The Karbun solution
Karbun has developed an easy to integrate, distributed climate accounting and payment platform where not only enterprises but individuals can buy and sell their carbon credits. It has made transactions transparent and reliable whilst calculating the amount of emissions and emissions rights possessed by different enterprises. This facilitates clear tracking of greenhouse emissions and prompt clearance and settlement of carbon credit transactions with easily available corresponding exchanges or best-in-class carbon tenement/similar holders of greenhouse project initiatives to strengthen worldwide Carbon markets. This is a crucial part as this eliminates an enormous amount of administration for both the businesses as well as the government.
Parties contributing to greenhouse gas emissions have been directed to go Carbon-neutral but there hasn’t been a set blueprint for guiding them and providing them with a formative game plan. Karbun is providing the platform to contribute effectively towards “greenhouse-endeavours” without levied third party costs. The easy to integrate, distributed climate accounting and payment protocol applies blockchain technology allied with data analytic measurements for making transactions transparent and reliable whilst calculating the amount of emissions and emission rights procured by different enterprises. This facilitates clear tracking of greenhouse emissions by entities and prompt clearance and settlement of carbon credit transactions with easily available corresponding exchanges to strengthen worldwide carbon markets.
Blockchain has emerged as an asset in targeting the fallacies of emission tracking and controlling frameworks, ensuring stricter adherence to Carbon neutral endeavours in order to fulfil the net goal of achieving global carbon negative outcomes. Blockchain has been exalted to resolve the issues associated with development of Carbon Markets by way of decentralised-scalable solutions that promptly support new carbon markets via adjoining nodes that can be introduced into the network with ease.
One of the biggest upsides is that it will overcome the limitations of geographical coverage associated with global implementations of Emission Control Protocols. Another heralded benefit is via the streamlining of all carbon pricing initiatives worldwide in a single cohesive unit for better accounting, auditing and monitoring of emissions between entities in disconnected carbon trading initiatives across the globe. The interlinking of multiple carbon initiatives, on a single cohesive platform, will facilitate enhanced market liquidity and size. Economically speaking, having a united, automated and decentralised system embedded with immutable, tamperproof and smart contracts can reduce fixed costs and risk of corruption, especially once spread across a large common network. This helps to reduce barriers to entry, allowing coverage to be extended to smaller enterprises and lesser-developed regions backed by enhanced transparency. The pseudonymity of Blockchain also allows transaction data to be readily available in inclusive detail without compromising privacy or confidentiality of the trading parties.
Karbun’s digital ecosystem records all kinds of asset transactions in an immutable format. However, unlike traditional databases, the transactions and their details are recorded in multiple places simultaneously, meaning that distributed ledgers have no central data store or administration functionality.
The main principle of operation of a distributed ledger is usually to process, validate and authenticate transactions or other types of data exchanges. Once consensus is achieved, each record is time-stamped, signed by a cryptographic signature and stored in the ledger.
Due to the consensus process for security validation being a major contributing factor to inefficient-energy usage in current trending Blockchain platforms, Karbun has offered to establish the next-generation of Blockchain architecture by overcoming the conventional consensus drawbacks with first of a kind peer-to-peer consensus orientation that only involves parties to the transaction for validation, as opposed to the entire network. This shared ledger of Carbon ‘s transactions remove the need for involvement of all parties on the network to constantly check if each record is in alignment after repeated interactions with one another. This empowers the parties on the platform to avoid requisition of the whole blockchain history in order to function, ultimately allowing user liberation to fully operate the entrusted nodes on devices, cutting down processing power and storage while offering better scaling options in terms of payments, especially involving real-time streaming of large content or processing of many transactions. This design facilitates swift exchange of funds between greenhouse-gas emitters and carbon tenement holders existing on the Karbun’s Platform.
We will cover further details of Platform operations in coming articles for a clearer illustration of Karbun’s functionalities.
