Algorand, a proof-of-stake blockchain, will use a smart contract to handle the network’s carbon offset. Algorand has announced that a new smart contract within its blockchain network would process a portion of each transaction fee to purchase verified carbon credits at ClimateTrade, a blockchain-based carbon offset marketplace.
The change will allow the network to scale while remaining carbon neutral, according to Staci Warden, CEO of the Algorand Foundation. Warden believes that smart contracts will make their blockchain environmentally sustainable in the long run, and he hopes that other companies will follow suit.
“We believe that partners and other blockchain protocols will learn to lower their carbon footprint,” Staci said. She went on to say that all tech firms have a responsibility to contribute to the building of a sustainable future, and she and her team are excited to be able to give a path for doing so.
Staci Warden also believes:
“The adoption of proof-of-stake as the favoured consensus method is a step in the right direction for the industry. While there are legitimate concerns about Bitcoin and proof of work, the future looks promising.”
The Algorand team pledged to be a carbon-negative blockchain in 2021. Because of its cooperation with ClimateTrade, Algorand was able to log its on-chain carbon footprint and place an equal quantity of carbon credits in a green treasury.
Meanwhile, in an effort to combat the effects of climate change, Lemonade joined with blockchain firms to develop a decentralised autonomous organisation (DAO) that intends to assist African farmers in mitigating the consequences of climate change. The Lemonade Crypto Climate Coalition DAO provides farmers with climate insurance and lets them be compensated if they are ever impacted by natural disasters.
Read more: Algorand to feature its green initiative on Times Square billboard on earth day
