Web3 data-storage solution by Filecoin for carbon offsets

Companies cut down their energy consumption to improve the ecosystems

Published: Oct 28, 2022 06:09:08 PM IST

Image: Shutterstock

Filecoin Green is the world's first Web3 data storage solution that enables transparency for comprehensive environmental attributes underlying carbon offsets. This free storage utility addresses the inefficiencies of traditional storage solutions for all digital environmental assets, including carbon offsets, Renewable Energy Credits, and others.

The Administration focuses on developing responsible digital assets, reducing emissions, and solutions like CO2. Storage can help improve the environmental impact of Web3 technologies. This not only meets the needs of industry practitioners but also aligns with overall policy objectives.

The company is set to address the shortcomings of traditional carbon storage solutions by combining blockchain's granular tracking functionality with the information-sharing infrastructure of Web3. This will allow for greater transparency and accountability regarding carbon storage.

The quality of carbon credits is often difficult to trust because data associated with offsets is hard to access and validate. This results in low-quality, outdated credits that don’t accurately reflect the emissions mitigation potential of the credit. To fix this, users need transparent and verifiable datasets that guarantee the environmental legitimacy of credits for sale.

CO2 Storage offers a solution for carbon credit providers to store their data more securely and transparently. Providers can use Filecoin and IPFS to define their data schemas and store data more efficiently. Carbon credits are often stored in a traditional Web2 way that only allows for a little transparency.

Filecoin Green is partnering with organisations committed to tokenising carbon offsets, ensuring data transparency and verification. These include Toucan, KlimaDAO, Flowcarbon, Moss, dClimate, Hyphen, Nori, Regen Network, BitGreen, Senken, Thallo, Ripple, the HBAR Foundation, Envision Blockchain, Return Protocol, and Gainforest. “CO2.Storage pushes beyond existing Web2 carbon market infrastructure to increase the verifiability of carbon credits and interoperability between different systems,” said Alan Ransil, PhD, founder of Filecoin Green at Protocol Labs.

As the world becomes more aware of the dangers of climate change, organisations are looking to blockchain technology to help reduce carbon emissions. Carbon credits can be used to offset emissions, and by tracking them on a blockchain, we can ensure they are being used effectively.

To examine blockchain’s potential for tackling climate change, the United Nations Environment Programme and other governing bodies convened at the Middle East and North Africa Climate Wee in 2021. The event was a platform for experts to share their insights on how blockchain technology could be used to help mitigate and adapt to climate change.

Blockchain technology is becoming more eco-friendly. Some companies are even taking a stand to be carbon-neutral. For example, Algorand announced in April 2022 that their blockchain was 100 per cent carbon-neutral. Ethereum followed suit in September 2022 by reducing energy consumption by 99.9 per cent by switching to a proof-of-stake mechanism.

The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash