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As stated somewhere in one of our previous posts, carbon chain project is built on an already existing global market of carbon credits. The current carbon trading system is known as carbon tax or a cap-and-trade system. This is in simple terms, a system in which industries and governments are taxed for their gas emissions. Here, political authorities set up institution for the creation of carbon credits and collecting the taxes.
As might be expected, this system of trading is marred by political influences and pressure. Most often, since the policies governing these trades are set up by political authorities, they fashion such policies in such a way to favour them and by so doing, suppressing the price of carbon credits so that the market has difficulties growing to its full potential. Moreover, funds raised from the taxes (sales of carbon credits) are diverted at times by the authorities to fund their agendas which might not relate in any sense to carbon emission.
Needless to say, this system of trading lacks accurate auditing. Being a global market, there are also too many intermediaries and many procedures to follow and these delays transaction processing.
Getting an authentic source of a carbon credit is difficult with this system since it lacks accurate documentations and a good means of tracking the credits’ journey. Coupled with theee are the difficulties in clearance and confirmation of trades and errors such as double counting, etc. One can in short say in a nutshell that this system lacks transparency.
These glitches in the cap system hinder smooth running of the carbon market and deter individuals, governments, and corporations from complying with the agreement to reduce their gas emissions.
Carbon chain project introduces a blockchain ledger system for the trading of carbon credits. This system allows individuals, governments, and corporations to seamlessly and effortlessly acquire carbon credits at their convenience.
Blockchain being decentralized by nature, would make auditing the system easy as every transaction would be automatically recorded in the digital ledger. This would help immensely in eliminating fraud and bring on transperancy in carbon trading. Also, there's every possibility that funds raised from the credit sales here would be used for carbon related projects and not diverted into irrelevant projects since the system would be decentralized and transperant such that everyone can see the movement of all funds.
With carbon chain, information regarding every carbon credit would be readily accessible to all users as these would be automatically recorded on blockchain. This technology, transparent by nature, would make it possible for carbon credits to be easily tracked - including their sources and journey on the system.
Blockchain has high processing speed. This digital ledger system would shorten the procedures invloved in carbon credit acquisition/trade. With this technology adopted by carbon chain project, there’s no need for intermediaries in transaction processing. Processing of transactions here is almost instantaneous and automated. Moreover, there's low cost of transaction in this system compared to the tax system.
Ultimately, carbon chain project through - its credit exchange - would bring about efficiency and transparency in carbon credits trading/transactions and this would go a long way in boosting confidence in buyers and bring about a wider participation in the trade. It's not surprising then that hopes are high on this project as it is expected to turn out as an effective means by which countries and governments control their carbon emissions.
To boost this digital technology, the platform (carbon chain project) offers huge discount on carbon credits to clients who make their purchases on the carbon credit exchange.
I'm sure you'd agree with me that this is one project worth looking into. Read more about carbon chain project here on their official website: https://carbonchain.org/#home
And their whitepaper: https://carbonchain.org/wp-content/uploads/Carbon-Chain-White-Paper-21-Aug.pdf
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