Sirwin
Sirwin

Carbon Market Exchange — A Crypto Way of Fighting Carbon Emissions


Carbon credits have been around for a while. Corporations and countries emit carbon credits in order to neutralize the effects of greenhouse gasses on our ecosystem. The money you’re paying buys you the permission of using 1 metric tonne of CO2 that will be removed from the atmosphere.
 
How does Carbon Market Exchange work?

Carbon Market Exchange took the carbon credits to a whole another level. Meet XCO2, the tokens that allow those looking for an easy method to offset their carbon footprint with cryptographic proof in a publicly auditable ledger for accountability and transparency.

The idea behind is that the token’s price will fluctuate according to the price of a metric tonne of CO2. It will work much like a stablecoin, just the price will be tied to your carbon’s price, not the US dollar, Euro or other currencies.

The total XCO2 token supply is tied to the number of carbon credits that are held by Carbon Credit Exchange LTD. To claim the credit and have your wallet address tied to a carbon credit certificate and the XCO2 tokens must be retired. This will pull the tokens out of the total supply and assign the amount of credit to a user’s wallet address.

Where and How Was The Blockchain Built?

The token was launched on Ethereum, as Ethereum had many advantages to offer. The biggest benefit came from having a massive ecosystem of users and corporations building around the Ethereum network. This led Carbon’s main customers right to them.

Also, let’s not forget about Ethereum’s impenetrable security and popularity. Most exchanges were able to integrate the token into their order book listings because of the technical choice of using Ethereum.

Overall, Ethereum has proven itself as being the best place to build XCO2 on top of.

What’s the Main Audience of XCO2?

While the token is made for big companies that are forced by the law to reduce their carbon footprint to a certain level, Carbon doesn’t limitate itself only to big players. The goal behind the Company (to reduce the worldwide carbon footprint) to completely reduce the carbon emission around the world, can be achieved with the work of simple people purchasing the tokens.

Token Features

1. Mint function

The mint function allows users to create new XCO2 tokens. When this function is activated, the tokens are sent to the user who initiated the process, while a predetermined number of tokens are retired. These retired tokens are linked to carbon offset efforts, making the mint function environmentally beneficial by offsetting the carbon footprint of the transaction by up to 1k times.

2. Mint and Burn function

With XCO2 tokens, it is possible to simultaneously mint and burn tokens through the same function. This is similar to purchasing carbon credits and immediately retiring them, which has a positive impact on the environment. To encourage the use of this feature, Carbon plans to offer incentives such as NFTs and other rewards.

3. Burn function

The burn function is used to retire tokens that were created through the mint function. Burning tokens is equivalent to retiring carbon credits

Sidechain Usage

Besides Ethereum, XCO2 migrated to Polychain. Polychain, as a PoS, has never been producing a lot of carbon to compute its transactions. Therefore, the blockchain works perfectly with its mission.

Carbon will be building out a bridge that will allow XCO2 holders to bridge their coins back and forth between Ethereum and Polygon. Also, their NFT collection has been built on the Polygon blockchain.

So, to wrap it up, the idea of fighting carbon emissions through blockchain technology is a great one. It’s always great to make sure you leave a livable planet to your children and grandchildren. Make sure you don’t use too much water in your shower tonight. Cheers!

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