Business Wire India
Algorand, a leading blockchain technology company designed to be the most efficient and greenest blockchain available, today cements its leadership and commitment to the environment by announcing its blockchain is fully carbon neutral. Algorand has partnered with ClimateTrade, a leader in CO2 emissions transparency and traceability that is using blockchain-based solutions to improve the efficiency of sustainability efforts for leading corporations around the globe.
Sustainability has been a core component of Algorand since its inception. As the world’s first pure proof-of-stake blockchain, the Algorand network was designed from the ground up to minimally impact the environment. Because its consensus is not based on energy-intensive proof-of-work and requires minimal computational power or electricity, Algorand has been a leader in minimizing the environmental impact of blockchain technology. The energy required to run a node in the network is negligible, and can be done on a device as simple as a Raspberry Pi. Compared to other blockchains, digital asset creation and transactions on Algorand result in magnitudes less CO2 emissions, with initial analysis demonstrating around 2 million times less.
“Algorand is experiencing accelerated adoption and network expansion. As this period of hyper growth continues, we find it crucial to operate at a carbon-negative level. Indeed sustainable growth is way better than growth,” said Silvio Micali, Founder of Algorand. “We understand that the mechanics of measuring the environmental impact of a global, decentralized and widely used blockchain are nuanced and complex. That’s why we are teaming up with ClimateTrade to continue and double-down on our eco-conscious efforts.”
ClimateTrade leads the market in bringing transparency and traceability into carbon markets with blockchain solutions, offering its services to large corporations including Iberia, Melià Hotels, Cabify, Telefónica, and many others. ClimateTrade provides a marketplace where users can directly offset their carbon footprint by selecting the most suitable carbon credits from the ones available, and earning the official certificate. Last year, ClimateTrade selected Algorand to power its global marketplace due to the flexible architecture, low transaction fees, and scalability that only Algorand can provide.
“Clean energy and addressing climate change are priorities for the United Nations, global organizations and governments alike. Algorand has a very low carbon footprint to begin with, and we are inspired by the leadership role the organization is taking to ensure the next generation of blockchain adoption is environmentally friendly,” said Francisco Benefito, CEO of ClimateTrade.
To achieve a carbon-negative network, Algorand and ClimateTrade will implement a sustainability oracle which will notarize Algorand’s carbon footprint on-chain for each epoch (a set amount of blocks). With its advanced smart contracts, Algorand will then lock the equivalent amount of carbon credit as an ASA (Algorand Standard Asset) into a green treasury so that its protocol keeps running as carbon-negative.
Thanks to its leadership as an eco-friendly technology, Algorand is seeing increased adoption by organizations that are aligned in their focus on sustainability, including ClimateTrade, PlanetWatch, and GlobalCarbon Holding.
Algorand is building the technology to power the Future of Finance (FutureFi), the convergence of traditional and decentralized models into a unified system that is inclusive, frictionless, and secure. Founded by Turing Award-winning cryptographer Silvio Micali, Algorand developed a blockchain infrastructure that offers the interoperability and capacity to handle the volume of transactions needed for defi, financial institutions and governments to smoothly transition into FutureFi. The technology of choice for more than 500 global organizations, Algorand is enabling the simple creation of next generation financial products, protocols and exchange of value. For more information, visit www.algorand.com.
Climatetrade is a Spanish fintech whose main objective is to help companies achieve their sustainability goals by offsetting CO2 emissions and financing climate change projects.Pioneering the development of its blockchain marketplace, Climatetrade has recently launched an API that allows the acquisition of carbon neutral products and services from customers of the different companies integrating this solution. For more information: https://www.climatetrade.com/
About The Algorand Foundation
The Algorand Foundation is a not-for-profit organization that has a vision of a borderless, frictionless economy built on public, decentralized blockchain technology. The Foundation envisions a wide breadth of applications being built on the Algorand protocol by a new, broader community of blockchain and mainstream developers. The Foundation is committed to facilitating this innovation in a sustainable and eco-friendly manner. For more information, visit https://algorand.foundation.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210422005075/en/