Through the use of a permissioned blockchain, the use of fossil fuels could be tracked at the same time carbon credits are traded.
"What we're building into a token is an accounting methodology to automatically calculate the carbon footprint as well as with the design of the token creating an instrument we anticipate can be exchange traded," Klee said. "We hope that opens up a world of opportunities not only for companies to buy these and immediately use the carbon credits, but so that a company can perhaps anticipate what their upcoming environmental impact activities will be this year and purchase tokens as a hedge."
Now, blockchain can turn carbon credits into tokens for trading
Companies are developing a crypto token that represents carbon credits to be traded on a blockchain ledger, creating a more efficient and transparent method for exchanging the valuable certificates tied to reducing greenhouse gas emissions.
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