Can Blockchain Help Solve Climate Change? Ripple Thinks So

Ripple will also create a database of long-term carbon credits based on science and nature. Some of these can assist the country in meeting its goal of zero net emissions by 2030. Furthermore, the funds will develop new tools and features that will allow carbon credits to be tokenized as core Non-Futurable Tokens (NFTs) on the XRP Ledger (XRPL). This will contribute to meeting the global climate goal of limiting global warming to 1.5 degrees Celsius.

Carbon markets are unable to meet rising demand. This is due to supply bottlenecks, slow time to market, and a lack of high-quality, authentic, and dependable products. Carbon markets must have better ways to check projects and certification and more transparent data about the market and prices. They should also have better infrastructure for buyers and sellers to meet global climate goals. 

Cryptocurrency and blockchain have built-in features like transparency, authenticity, and scalability. As a result, they could help resolve some of the most pressing issues impeding growth and efficiency.

Ripple On Track To Go Carbon Neutral By 2028

In 2020, Ripple announced its intention to be carbon neutral by 2030, and it is currently on track to accomplish this goal by 2028. In addition, in collaboration with non-profit organizations such as the Energy Web Foundation and the XRP Ledger Foundation, Ripple contributed to the decarbonization of the XRPL blockchain, the first blockchain to achieve carbon neutrality by 2020. 

To further demonstrate its commitment to sustainability, the $100 million will fund initiatives such as:

Tokenizing carbon credits may be crucial for expanding carbon markets and meeting rising demand. They can do this while preserving the existing markets' credibility, integrity, and transparency. 

Numerous carbon removal initiatives and fintech have already utilized the XRPL platform to commercialize innovative climate-related solutions. By incorporating blockchain technology into global climate initiatives, the business can be more efficient in confirming and verifying NFT carbon offsets. As a result, it will reduce the risk of fraud and ensure that the offset removes carbon over the long term. 

Ripple Partnership With Companies For A Climate Change

Ripple collaborates with the industry's best carbon removal companies and carbon market makers. CarbonCure Technologies, for example, uses carbon mineralization to permanently store CO2 in concrete. 

The United Nations has backed Xange.com, a climate-focused Fintech firm currently developing carbon verification, tokenization, and exchange capabilities using XRPL. However, all hands must be on deck for these companies to solve the climate crisis. Growing the market for high-end carbon reductions and removals, such as those provided by CarbonCure, is a critical solution component.

Ripple's strategic investments will significantly impact the development of carbon-removal technology. It will also impact the improvement of carbon-credit supply and the expansion of instruments and solutions for the global carbon market. There are current efforts to reduce carbon emissions in the global economy and purchase more carbon credits. However, this will only cause the demand to increase. Therefore, they must improve the industry's methods and processes to meet the needs of our climate.

Ripple also collaborates on climate change issues with large organizations such as the Energy Web Foundation, the Rocky Mountain Institute, and the Alliance for Innovative Regulation. Since its inception on April 20, 2021, the Crypto Climate Accord has attracted over 500 members from finance, cryptocurrency, technology, non-governmental organizations, energy, and climate industries. Ripple was also among the first companies accepted into the World Economic Forum's Crypto Impact and Sustainability Accelerator (CISA).

Is Blockchain Key To Combating Climate Change

Blockchain technology can help in the fight against climate change. They can do this by developing clean energy solutions and making it easier to automate processes. By using blockchain technology, these power companies will be able to better value and track their investments in green energy. It could result in them investing more money in environmentally-friendly investments. It could also result in greater transparency and accountability regarding how they keep climate-friendly promises. 

Reports have also shown that "hybrid smart contracts" are the new backend framework essential to creating sustainable energy solutions. The framework uses blockchains to manage and settle transactions involving more than two parties and smart contracts to define how the parties will collaborate.

How Can Oracles Help?

Oracles are interoperability solutions that work with smart contract-based blockchains. They add data and infrastructures that aren't on the blockchain to the contracts. As of 2019, more than 140 research projects and startups have begun investigating, testing, and applying blockchain technology to improve energy efficiency.

More and more businesses realize how blockchains, smart contracts, and oracles can help with climate change efforts. As a result, we'll start to see a trend that will keep growing until it becomes an industry standard. For example, before crediting a project's carbon offset, Oracles use remote sensing and satellite data to determine where carbon is stored.

For example, the hybrid smart contract system Hyphen uses these oracles, which provide the chain with accurate data on greenhouse gas emissions. It also demonstrates that the company is meeting its blockchain and climate commitments. With these technologies in place, companies will be able to offer dynamic carbon assets backed up by measurements from the real world. This instils trust in investors, capital markets, banks, and regulators.

Conclusion

Ripple's $100 million commitment immediately responds to the global call for businesses to fight climate change. This is possible by deploying cutting-edge technologies, strategic capital, and skilled workers. In addition, carbon markets can be an important tool for meeting climate change goals. By making a complicated market more open and liquid, blockchain and cryptocurrencies could help carbon markets realize their full potential.