Canadian startup uses blockchain technology to allow individuals to earn, spend and trade personal carbon offsets.
Many people have the good intentions to cut down on their carbon footprint but find it difficult to put these intentions into practice. But help is on the way, in the form of the world’s first peer-to-peer, personal carbon trading company. CarbonX offers financial incentives for individuals to reduce their carbon footprint. Canadian startup CarbonX first buys carbon offsets, then converts the carbon credits into a cryptocurrency token called CxT. It then sells the tokens to retailers and manufacturers, who in turn use them to incentivise consumers to make more sustainable choices.
Consumers using the CarbonX platform might earn tokens for choosing locally-grown produce instead of produce flown in from a distant country, or for buying an energy-saving washing machine. These tokens can then be exchanged for carbon-friendly goods and services, other reward program points, or other digital currencies. The loyalty scheme uses blockchain technology to seamlessly keep track of the transactions. Retailers will decide how many tokens a given purchase will earn, and the tokens will be tradeable on the CarbonX platform. Retailers and service providers signing up to CarbonX will also be able to take advantage of transaction data and information on customers’ energy usage to help them target products and services to customers who are most likely to purchase them.
CarbonX plans to announce its first partner companies, and to complete development of its app, by the second quarter of 2018. According to CarbonX advisor Dr. Richard Sandor, “Blockchain technology has the potential to further expand the applications of market-based mechanisms to help solve environmental concerns.”
We have already seen a growth in the adoption of blockchain technology for uses such as preventing ticket counterfeiting, creating cryptocurrencies and storing ID securely. How else might blockchain technology be applied to solving environmental issues?