green credit – Algorand (ALGO) had announced in April 2021 its partnership with ClimateTrade, which is a blockchain-based carbon offset market. This collaboration aimed in particular to certify on-chain, the carbon footprint of Algorand. The latter has just taken a new step to achieve its ambitions of becoming the blockchain that works with a negative carbon footprint.
Algorand and carbon credit: a green smart contract for the good of the planet
Algorand recently announced the deployment of a smart contract that will take part of the transaction fees, and automatically process them to buy carbon credits verified on ClimateTrade.
Algorand Foundation CEO Staci Warden hopes this new feature will allow the project to grow, while remaining carbon neutral. This initiative could also, according to Staci Warden, encourage Algorand partners and other blockchains “to reduce their carbon footprint”.
The CEO of the Algorand Foundation further touted the benefits of proof of stake – that the ALGO blockchain uses – in terms of ecological impact:
“The industry is moving in the right direction by embracing proof-of-stake as the preferred consensus mechanism. While there are certainly some valid criticisms against bitcoin and proof of work, the future is bright”
Blockchains using proof of work are often criticized, rightly or wrongly, for burning the planet, given the amount of energy required to mine cryptocurrencies.
These attacks harm the adoption of the affected cryptocurrencies. For example, the majority of the Wikimedia community, the foundation that hosts Wikipedia, voted overwhelmingly against accepting donations in bitcoin and other cryptocurrenciesin the name of ecology.
Algorand understood that blockchains must be green in order to grow. It is not, however, the only crypto project to integrate these environmental concerns into its growth plans. Blockchain Solana (SOL) is also targeting ecological neutrality. Other projects also want to become champions of ecology, such as the millions of tonnes of accumulated carbon credits attest to this in this crypto.
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