Among the numerous concepts rolling around, one of the many concerns of the world about today’ is climate change. However, the ever-changing times and further development of technology make it more and more challenging to protect nature and its resources. This concern has plagued the crypto industry as well, with the daily carbon emission of more than 417.2 ppm on average this year. To ward off any more defects to society and the environment, the crypto industry has come up with a unique trading platform that supports reducing carbon and other greenhouse gas emissions. This blog will be tracing the path of such an eco-friendly development infrastructure, Carbon Credit NFTs, with Web3’s decentralizing perks in detail.
But before that, you should first understand the need to integrate Web3 with the centralized carbon market.
The Critical Need Of Carbon NFTs
It’s not rocket science that we emit large amounts of carbon dioxide (CO2) and other toxic greenhouse gases (GHG) that harm our ecosystems. To mitigate the damage, carbon markets limit the amount of carbon emissions from organizations across various industries. This centralized concept allows companies to support the “Go Green” movement without abandoning their core business in diverse niches.
This business model allows owners to earn credit for achieving their carbon reduction goals and thereby receive government benefits. However, despite burgeoning efforts, the lack of transparency makes people and owners hesitate to invest in this future economy. To meet this challenge, the introduction of blockchain technology into the carbon market brings transparency and certainty through carbon credits.
Carbon NFTs – How Are They Implemented?
Combining regenerative finance (ReFi), such as carbon credits, and the decentralized finance (DeFi) platforms, such as NFT marketplaces, encourages entrepreneurs to integrate their efforts toward creating a low-carbon economy. Carbon credits are a tool that allows organizations to emit only a certain amount of CO2 and convert the reduced emissions into carbon NFTs. Carbon NFTs are the digital assets developed using the Ethereum token standard ERC-1155, allowing easy trade in decentralized platforms.
Carbon credit NFTs work by offsetting the footprint of industries, which can combat climate change. The following is how we create these unique tradable carbon offsets for increased profits.
- We lay down the mechanism of these carbon NFTs to offsets by analyzing the venture’s project type, geographical location, and the standards of their carbon credits certification.
- Next, we take advantage of advanced analytic tools to calculate the carbon dioxide (CO2) emissions which have a significant role in deciding the value of this fused digital asset. We take into consideration the venture’s energy consumption, the server host of these carbon assets, and many more.
- We help ventures analyze and get linked with the most suitable carbon assets that align with your venture’s goals. We purchase carbon offsets that will elevate your project’s credibility to reduce GHG emissions.
- We develop robust smart contracts to ensure the transparency and liquidity of carbon offsets with multiple features integrated into the carbon credit NFTs.
- The final stage of creating the carbon credit NFT is to list the newly-minted asset in the carbon credits NFT marketplace for swift trades between users. We list these Carbon NFTs in marketplaces by describing their enhancing attributes to attract buyers and investors.
Debut In The Green Economy – How Do We Price These Carbon NFTs?
Carbon taxes are levied by the government on the organization, which are usually classified based on the carbon contributions to the environment. For example, if a clothing venture releases, say, 200 ppm of carbon every year, their tax payable will also vary.
Emission Trading System (ETS)
Emission Trading System is based on the novel ‘cap and trade’ mechanism and the baseline credit system, where the organization can easily trace their carbon offset in real time. With this pricing mechanism, the venture can integrate their offsets into NFTs which enables secure storage of assets. The additional major advantage of this mechanism is that if the token is not used by the venture after purchase, it permits the carbon credit to be sold in the carbon credits NFT Marketplace.
We Provide A Feature-Driven Carbon Credits NFT Marketplace
Carbon Credits verification
This feature allows the marketplace to engage the user with easy and legitimate verification of carbon certificates. With this feature in place, the user can verify the authenticity of carbon credit for its standard in a decentralized manner, promoting anonymity during the trade.
Carbon Credits tokenization
For a successful tokenization of the carbon assets, the platform should have a credible interface. We offer a transparent interface that allows the buyers to tokenize their offsets into carbon NFTs swiftly.
Carbon Credits Live Tracking
With the live trackability of the carbon offsets of the organizations, the buyer and the seller can view the project’s details with their amount of carbon emission offset.
Carbon Credits project information
One of our essential features integrated within a carbon credits NFT marketplace is the easy and secure viewability of the clean energy projects available in the market, with all the vital details required for investing. An example of crucial information here is emission reduction methodology.
Carbon Credits Pricing check
We develop our platform meticulously with a number of analytic tools that offer a user-driven trading platform where the prices of carbon credits directly depend on the standard of the carbon offsets. Also, we enable the user with multiple security-layered crypto wallets, with which the user can store and trade or exchange credits.
Carbon Credits impact/ portfolio management
Our portfolio management feature in the marketplace encourages the user to engage in the platform to track their support to the market and also measure their impact on the environment. One such portal includes reporting dashboards.
Carbon Credits minting
Minting the carbon offset is done swiftly and effectively with our in-built feature of carbon credits minting feature. Organizations and ventures can sell their excess carbon credits as NFTs on the blockchain of their choice.
Carbon Credits selling
This feature encourages users to buy a credible carbon credit NFT from other organizations, with advanced search options to navigate to their desired NFTs of purchase.
Carbon Credits staking
Our development solution offers access to stake your carbon credit NFTs to earn passive income instead of selling them. This is one such feature that provides profits without having to lose the ownership of the asset.
The Best Crypto Investment – Our Carbon Credits NFT Marketplace Development Solution
With the eco-safe business model in mind, we can create a platform that is beneficial to traders, crypto owners, as well the ecosystem. Our expertise brings together a number of potential perks by developing the carbon credits NFT marketplace platform. Some of the key perks include;
- Encourages reduction of emissions of carbon and other greenhouse gases into the atmosphere.
- We promote the sustainability of business practices without having to affect the environment but raking profits by investing in eco-friendly technologies. Such as energy-efficient buildings, low-carbon transportation, etc.
- Active support in the reforestation and conservation of the environment by crypto-based ventures.
- Avoid greenwashing and double counting of carbon credits, thanks to the openness of the carbon NFTs trading platform.
Closing Thoughts – Why Blockchain App Factory?
Blockchain App Factory, as a leading crypto-based solution provider, offers a promising solution to making carbon markets more accessible and efficient. By developing a futuristic NFT carbon credit NFT marketplace, we aim to elevate businesses and individuals who can easily participate in the carbon market and drive more climate action for positive change.
With the potential of blockchain technology to revolutionize the carbon market, we look forward to seeing what the future holds as pioneers in the cryptocurrency market. It can lead to a more sustainable and equitable future for businesses that desire to build a future that is carbon-neutral as well as lucrative. We believe that business decisions are made with sustainability in mind and that carbon credits are made widely available and accessible. That said, show your support today by investing in creating a unique carbon credits trading platform!