06/08/2022
WEWORK FOUNDER HAS ESTABLISHED A CARBON CREDIT WEB3 COMPANY
When a company or individual wants to buy carbon credits, it encounters different rules and restrictions from local governments. If you do not have a good relationship with the government or related institutions, not only is trading difficult but even opening an account is very troublesome. And companies selling carbon credits need a middleman to get them, which takes a lot of time and is extremely hard to reduce the relative cost.
The characteristic of Web3 is ādecentralization,ā which may fit well with the characteristics of the carbon credit market. Companies can offer their decentralized products and services to customers via blockchain technology. Because of the concept of decentralization, customers only need to trust the underlying algorithms to trade the products more freely.
Flowcarbon issues GNT tokens via blockchain technology and links them to carbon credits due to these issues in the carbon credit trading market. Simply put, sellers can āuploadā their excess carbon quotas into tokens and buyers can purchase them for two purposes: 1. they can wait for the tokenās value to rise, as in stock speculation; 2. they can āunlinkā the token and transfer carbon credits back to offset their own emissions reduction deficit.
Tokens linked to carbon credits will greatly increase market liquidity and significantly increase trading volume compared to traditional over-the-counter transactions. Projects that reduce or eliminate carbon emissions can use their carbon credits over a five-year period to exchange GNT for fast-track financing. However, Anil Madhavapeddy, associate professor of computer science and technology at the University of Cambridge and director of the Cambridge Carbon Credit Center, believes that the current problem with the carbon credit market has nothing to do with how to trade more efficiently. The bigger problem is that thereās not enough supply.ā
Although Flowcarbonās business model has been questioned, if Flowcarbon can make its concept a reality, GNT could be the key to making the carbon credit trading market accessible to the masses.
