Algorand has officially implemented the first smart contract that will automate the offsetting of carbon emissions.
In a press release shared with CryptoSlate, Algorand said that it was doubling down on its commitment to the environment.
Algorand’s self-sustainability will be funded by transaction fees
Sustainability has been the core component of Algorand ever since it was founded in 2017. Designed to be energy-efficient, the network’s unique proof-of-stake consensus mechanism requires minimal energy to compute but still provides the high speed and instant finality usually associated with proof-of-work networks.
Naveed Ihsanullah, the vice president of engineering research at Algorand, told CryptoSlate that efficiency and a minimal energy footprint must be table stakes for all enduring future technology. This is why Algorand decided to introduce a self-sustaining smart contract that will automatically allocate a portion of every transaction fee to offset its carbon emissions.
“Algorand, a blockchain leader in this space, is seeing tremendous adoption from eco-conscious brands, creators, and developers, and we’re proud to take another step forward in our commitment to sustainability with the introduction of smart contracts permanently enforcing our carbon offsetting pledge.”
Last year, Algorand partnered with ClimateTrade, a leader in CO2 emissions transparency and traceability that uses blockchain to improve sustainability efforts for corporations. The network’s newly implemented smart contract will leverage ClimateTrade’s carbon credits marketplace to purchase required carbon credits that will offset the growth of the network.
The eco-friendly technology underpinning the network has been adopted by organizations focused on sustainability, including PlanetWatch, GlobalCarbon Holding, and ClimateTrade. Algorand has also partnered with organizations focused on the environment, such as Premios Verde, Envision Racing, Climate Ride, and SailGP.