Improving Environmental Issues with Blockchain: IBM Releases Verde Cryptocurrency token
Technology giant IBM announced that it will cooperate with fintech startup Veridium Labs to issue a cryptocurrency token, which is based on the Stellar blockchain.
IBM will use this project to achieve the tokenization of carbon credits so that heavily polluting companies can offset the environmental impact of their operations. The proceeds from the sale of “verde” token will be used in the 250 square mile reforestation project on Borneo Island, Indonesia.
Third-party carbon credits have existed for some time, but the assessment method is still controversial and it is difficult to be reflected in the traditional balance sheet. The verde tokens are exchangeable and can be traded on the open Stellar network, removing friction from the carbon credit supply chain and increasing transparency.
Veridium CEO Todd Lemons said:
“Over the years, we have been reducing the environmental impact of all aspects of the value chain. However, the solution at this stage has always been too complicated and costly. Our digital environmental assets are designed to help corporate and institutional investors purchase and use carbon credits to reduce their environmental impact, and can even hedge their potential future carbon liability risks.”
More importantly, the project does not stop at the proof of concept, nor is it an experiment. Its tokens are not limited to private-link applications, not just for several companies. Instead, the project was built on the blockchain of IBM’s partner Stellar, and carbon credits can be traded on the open Stellar network to achieve global coverage.
Bridget van Kralingen, Senior Vice President, Blockchain, IBM, revealed:
“Through an openly licensed blockchain network, we can help Veridium create a new sustainable market, which is good for the enterprise and the entire world.”
“This is a typical example of the blockchain reform industry. This case establishes a more efficient and transparent carbon calculation and offset program that enables individuals and companies to play an important role in improving the environment.”