Cryptocurrency

How blockchain tech and dMRV can help carbon trading markets

Published

1 year ago

August 30, 2023

There is a global consensus that greenhouse gas (GHG) emissions are warming the planet, but efforts to accurately measure, report and verify these emissions continue to challenge researchers, nonprofits, corporations and governments.

This is especially the case with “nature-based” projects to reduce carbon dioxide levels, like planting trees or restoring mangrove forests.

This has inhibited the development of a voluntary carbon market (VCM) on which carbon offset credits are traded. These “offsets” are sometimes viewed as licenses to pollute, but VCMs overall are thought to be beneficial to the planet because they help quantify the environmental impact of industrial and consumer activities and, at least indirectly, motivate companies to curb emissions.

However, VCMs have recently come under intense criticism. A nine-month investigation by the United Kingdom’s Guardian newspaper and several other organizations found that more than 90% of “rainforest offset credits” approved by the leading certification firm Verra “are likely to be ‘phantom credits’ and do not represent genuine carbon reductions.”

This finding shook the carbon trading sector, but it has also spurred some new thinking about ways to measure, report or verify the efficacy of carbon-reduction projects. Digital monitoring, reporting and verification (dMRV), for example, largely automates this process, making use of new technologies like remote sensing, satellite imagery and machine learning. DMRV also uses blockchain technology for traceability, security, transparency and other purposes.

All this is still new, but many believe dMRV can reinvigorate carbon markets following the Verra scandal. It can also compensate for a shortfall of human auditors and inspectors available globally to assess GHG projects, especially the more problematic “nature-based” projects. In addition, it can gather a broader range of data and potentially make it available in real time. Importantly, it will allow a global comparison of projects for the first time.

“A huge difference”

“DMRV will make a huge difference here, since it moves the quantitative comparison of various nature-based interventions onto a global field where they can be comparable with each other — something that is not possible in the current systems as projects self-report against their own baselines,” Anil Madhavapeddy, a professor at the University of Cambridge and director of the Cambridge Centre for Carbon Credits, told Cointelegraph.

Some go even further. “Digital Measurement, Reporting, and Verification (dMRV) technology has the potential to revolutionize the way the voluntary carbon market (VCM) operates,” declared dClimate, a decentralized infrastructure network for climate data, in a March blog post.

Still, questions remain: Maybe this is all too little, too late for averting climate change? And if not too late, won’t progress stall if better methodologies aren’t developed, like quantifying how much a Brazilian rainforest reduces global carbon? Are blockchains necessary for the process, and if so, why? And can dMRV really “revolutionize” voluntary carbon markets, or is this just excessive hyperbole?

“It is not too late,” Miles Austin, CEO of climate tech firm Hyphen Global AG, told Cointelegraph. “We find ourselves at a pivotal moment.” The Verra scandal and continued allegations of “greenwashing” on the part of corporations have made more companies leery of supporting carbon-reduction projects.

“The perceptions of trust and feasibility associated with nature-based assets, both within the public and private sectors, have been adversely affected,” Austin noted. But he added that at this critical juncture:

“DMRV can have a significant impact to not only improve these markets but save them.”

It might be helpful to compare dMRV with traditional MRV, which aims to help prove that an activity — like planting trees or scrubbing smokestack emissions — has actually occurred. It is a prerequisite before a monetary value can be attached to the activity, and a necessity for carbon trading markets to work.

MRV has been “underpinning” sustainability reporting for years, Anna Lerner Nesbitt, CEO of the Climate Collective, told Cointelegraph. However, “it has a lot of weaknesses,” including a high reliance on subjective data, steep costs, lengthy timelines and a dependence on “international experts” — i.e., consultants.

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According to Cambridge Centre’s Madhavapeddy, the inherent difficulty with quantifying nature-based projects “is that the conventional mechanisms for doing so — over the past decades — have been very manual and hard to compare across projects.”

Quantification mechanisms used for these assessments are far from being standardized. They include assessing “additionality” (i.e., what’s the net difference climatewise of a project?), permanence (how long will its effects last?), and leakage (did a negative externality, like cutting down a forest, just move somewhere else?).

DMRV, said Nesbitt, relies on emerging technologies and more granular data for “a fully digitized MRV protocol that not only collects digital data via Internet of Things, sensors and digital technologies but also processes and stores data on a fully digital and decentralized blockchain ledger.”

DMRV can also potentially reduce the workload of auditors and inspectors called upon to validate emissions-reduction projects, according to Daniel Voyce, chief technology officer of sustainability-focused solutions provider Tymlez, who wrote:

“With manual MRV recording each auditor or inspector might only be able to verify 150 projects each year due to chasing down the data they need and having to collate it all.”

Digitizing the process could reduce time and costs by 75%, he estimated.

Can blockchain help fix a “convoluted” process?

What role, if any, does blockchain play in all this? “I think if we are being honest, voluntary carbon markets — and regulated carbon markets — need blockchain for asset issuance and traceability,” Michael Kelly, co-founder and chief product officer at Open Forest Protocol — an open platform for scaling nature-based solutions — told Cointelegraph.

The current MRV process is “convoluted,” he said, with “no visibility into issuance schedules, no traceability, quite frequent double-spending, etc.” As a result, “people are hesitant to touch carbon credits.”

DMRV combined with blockchain could change things. “Once they can see everything about it [a project] — down to the upload of each tree in a sample plot for a 20-year time period — we will see new participants coming into the arena.”

Some incremental improvements in MRV — like digitizing submission forms — don’t really need blockchain tech, noted Nesbitt, but that might soon change with the addition of “features like smart contracts that allow for more inclusive or just asset pricing, baking in a reasonable compensation for local communities involved in carbon credit projects.”

However, there may be limits on how much blockchain tech alone can fix things. Blockchains can enable “transparency, security, automation and immutable records of data flows in an auditable fashion,” but that might not be enough, suggested Hyphen’s Austin, adding:

“DMRV can only be as good as the data and methodology used. If you take a flawed methodology and digitize it with blockchain, you now have an immutable and transparently flawed dMRV.”

Improving methodologies is crucial in Austin’s view. “Activity-based approaches work well in the case of combustion engines or industrial processes, which you can accurately measure and multiply by a factor,” he told Cointelegraph.

But these don’t really work on “nature-based solutions.” A forest in Brazil may sequester more carbon dioxide than an equally sized forest in Indonesia based on many variables, including drought, rainfall and humidity, for example.

“Nature is a breathing and living asset; therefore, methodologies need to measure the actual amount of CO2/CO2e [carbon dioxide/carbon dioxide equivalent] that is a sink or source instead of calculating a best guess,” said Austin.

Work is being done in this area, especially in the wake of the Verra controversy. “Researchers in this field are showing how the quality of ‘avoided deforestation’ carbon credits could be improved,” Julia Jones, professor in conservation science at Bangor University, told Cointelegraph. “However, there is, of course, some lag between new research and it getting into policy and practice.”

The Cambridge Center for Carbon Credits actually built a research prototype last year of what a carbon credits marketplace might look like on the Tezos blockchain. “Our first observation was that the blockchain really wasn’t the bottleneck here — all of that infrastructure works fine and has a solid technical roadmap for scaling,” Madhavapeddy told Cointelegraph. The barrier lay elsewhere.

“The blocker to any meaningful deployment came from the lack of supply of credible projects, since the quantification mechanisms” — i.e., additionality, permanence and leakage — “are only just maturing as satellite infrastructure and the associated algorithms are peer-reviewed and deployed.”

*Lidar points mapping trees in the Sierra National Forest. Source: Research Gate*

Kelly also cited a shortage of “quality carbon development projects and accessible credits,” especially in the nature-based asset subsector, as a significant obstacle for VCMs.

Projects like reforestation, afforestation, mangrove restoration and biodiversity conservation are now short of funding. This project shortfall leads to a low supply of credits, which becomes a sort of chicken-and-egg problem.

“The result of this system is that carbon credits remain a relatively illiquid, convoluted and difficult-to-scale system that disincentivizes stakeholders from financing, purchasing and trading the assets to participate in the market,” said Kelly.

“The biggest barrier right now is the collective credibility of the voluntary markets, and we hope that our work on the digitization and systematic design and publishing of analyses can help bridge that gap,” said Madhavapeddy.

A “perfect storm”?

What about claims, like those cited above, that dMRV technology has the potential to revolutionize the way the voluntary carbon market operates? Is that going too far?

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“DMRV is at the center of strengthening data integrity, which in turn would improve process integrity,” said Nesbitt. “So yes, I think dMRV is vital to set up the voluntary carbon market for success. But saying it will revolutionize the market might be taking it a bit too far given the many dMRV improvements and applications already in implementation.”

Kelly sees two promising trends in the wake of the Guardian expose. Legacy incumbents like Verra and Gold Standard are now more intent on digitizing their processes and “becoming more transparent and trustworthy,” he said, while “stakeholders are more willing to try new solutions, or service providers, especially if they have higher standards for trust, visibility and quality.”

The result could be a “perfect storm for catalyzing a liquid voluntary carbon market — on-chain,” he added.

Cryptocurrency

Xandeum to Unveil Solana Scaling Solution, XAND Token Launch and Liquid Staking at Breakpoint 2024

Published

8 hours ago

September 20, 2024

[PRESS RELEASE – LAS VEGAS, United States, September 19th, 2024]

Blockchain storage layer Xandeum has announced that it will reveal its blueprint for scaling Solana storage at Breakpoint 2024 on September 20, 2024. At the flagship Solana conference in Singapore, Xandeum will also share details of its new storage-enabled liquid staking program and officially announce the launch of the XAND token.

Designed to overcome the limitations of Solana’s current storage model, Xandeum’s technology will allow dapps to scale by accessing virtually unlimited storage. Solana can be looked at as a “world computer”, and Solana accounts are its “RAM”. At Breakpoint 2024, Xandeum will share its vision for adding the “hard drive” via their scalable storage layer, the missing piece to a full-fledged world computer. This innovation enables a Cambrian Explosion of storage-enabled dapps.

The smart contract native storage layer introduces “Xandeum buckets,” an exabytes+ scalable file system integrated directly into Solana RPC nodes. Storage will be offloaded to a decentralized network of hundreds of thousands of storage provider nodes (pNodes), supervised by Xandeum-enabled Solana validators. pNodes, validators, and liquid stakers will earn additional rewards in SOL, thanks to highly dynamic fee markets designed to optimize storage efficiency and profitability.

“A low-cost, decentralized storage solution will drastically expand the application landscape.” says Tommy Johnson, early Solana builder, co-founder, and lead engineer at Armada. “It can unlock a new revenue stream for SOL validators and stakers. The Xandeum solution will have an enormous impact on the growth of the Solana ecosystem.”

More details of Xandeum’s Solana scaling solution will be shared at Breakpoint 2024. In addition, Xandeum will use the event to announce its storage-enabled liquid staking platform. Scheduled to go live on October 29, the platform will capture future Xandeum storage fees for xandSOL stakers. Early adopters who stake with Xandeum will be eligible for boosted rewards of up to 10x with more details at https://xandeum.network

As an event sponsor, the Xandeum team will have its own booth at Solana Breakpoint 2024 in Singapore, with community members able to learn more about key initiatives including the liquid staking pool, XAND token, and forthcoming airdrops. The first airdrop snapshot will take place on October 8, with the XAND token launch scheduled for October 29.

Xandeum’s development of new storage primitives to enhance Solana’s programming model will solve the issues with the current storage system, known as “accounts,” which has proven insufficient to hold even a few gigabytes per dapp. These limitations threaten to stifle the growth of web3 applications on Solana.

Xandeum lead developer Xandeum Labs has raised $2.8M to build out its scaling solution and has seen significant interest from Solana’s builder community, with over 4B transactions completed on its community-run devnet. Xandeum will support a new wave of scalable web3 dapps while maintaining Solana’s security and decentralization.

About Xandeum Labs

Xandeum Labs is a web3 startup dedicated to building the scalable storage layer for Solana. As a major contributor to the world’s first storage-enabled liquid staking platform, operated by the XAND DAO, Xandeum has already raised $2.8 million from its community and is on track to launch its pNode network in early 2025.

Users can learn more: https://xandeum.com

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Cryptocurrency

Aptos Experience Unites Top Visionaries, Builders in Seoul to Celebrate the Future of Web3 on Aptos

Published

8 hours ago

September 20, 2024

[PRESS RELEASE – Grand Cayman, Cayman Islands, September 19th, 2024]

Aptos Foundation successfully hosted The Aptos Experience, a multi-day event held on September 5 and 6, 2024 in Seoul, South Korea to celebrate the ecosystem contributions shaping the future of Web3 on the Aptos blockchain.

This flagship event attracted more than 700 pass holders from Web2 giants like Universal Pictures, Google Cloud, Franklin Templeton, Visa, and SK Telecom; leaders of Web3-native projects like Aave Labs, Ondo Finance, and Supervillain Labs; and ecosystem members and aspiring builders from around the globe. Attendees were immersed in an “un-conference” environment, filled with technical workshops from Move developers, an immersive Web3 exhibition hall, and dynamic discussions designed to shape the future of Web3. Builders also took part in networking and nightly curated events.

Over 60 speakers shared perspectives that set the tone for discussions on the evolution of the creator economy, digital ownership, and the critical steps needed to onboard the next billion users to Web3. Experts including Arthur Hayes, Meltem Demirors, and Santiago R. Santos offered deep dives into the future of finance, gaming, art, culture, and technology.

While specific topics varied, the common theme was clear: the future on-chain is bright, and the Aptos ecosystem is making it real.

NBC Universal shared insights from the company’s ongoing Web3 journey, while representatives from Visa, PayPal, Arculus, and IDA discussed the future of on-chain transactions for mobile, wallets, and stablecoins. SK Telecom, Xangle, and Lotte Group outlined the use cases and benefits of the enterprise adoption of Web3 in South Korea. Leaders from Deutsche Motors spoke about how Web3 is transforming the used car market with enhanced security and transparency.

Aptos Labs announced plans for an enhanced version of the Petra wallet that will include new features: earn, which simplifies access to stablecoin DeFi lending pools for non-US users; features for peer-to-peer payments; access to exclusive content like videos and digital collectibles based on interests; groups designed to create digital communities for shared interests; and peer-to-peer “nudges” to interact with friends. Aptos Build, a suite of tools for builders to create dApps regardless of blockchain or Move skill level with integrated solutions, was also revealed and launched. Arculus debuted the highly secure and user-friendly Aptos Card – a hardware wallet that can make global value transfers as simple as tapping to pay.

Throughout the Experience, cryptographers and engineers discussed multiple innovative proposals that could drive the future of finance – and Web3 – on Aptos. There will be a governance proposal, including one for Raptr, the ultimate BFT protocol, that has the potential to unlock high throughput while preserving optimal latency and maintaining performance on Aptos very soon. A new and improved Move programming language will feature greater code, vector, and storage control for builders.

“It was incredible to have such a diverse group of people in one room, their enthusiasm about Web3 being their common denominator. It’s emblematic of the Aptos Network’s reach,” said Bashar Lazaar, Head of Grants and Ecosystem at Aptos Foundation. “From DeFi to gaming to the used car market, each segment brought a Web3 use case being proven out on Aptos to light. In addition to showcasing real-world innovation translating to decentralized value for the masses, it showed just how boundless an on-chain future can be.”

“Aptos Experience provided a comprehensive look at the massive opportunity decentralization offers not only builders, institutions, and household brands, but communities around the world,” said Alix Musset, Ecosystem Manager at Aptos Labs, a key contributor to the Aptos ecosystem. “The Aptos ecosystem is full of gigabrains actively advancing Web3 into a scalable, secure, and accessible next chapter of the global internet. Together, we’re bringing the world closer to mass adoption, thanks to the infrastructure, innovations, and features only available on Aptos.”

“This event took things to the next level,” said Joseph Lee, CEO of Supervillain Labs, a project building on Aptos “The opportunity to meet with peers and experts, all in the name of building the best Web3 experiences possible, was unlike anything we’ve seen before. It was a nice reminder that we’re all working together towards something greater – and the Aptos tech stack provides a stellar platform for true innovation and interoperability.”

Presentations made onstage in Seoul made it clear that Aptos is the home for high-performance DeFi. In collaboration with ecosystem members and partner organizations, the Aptos Foundation will continue supporting projects that bridge the Web2-Web3 gap and bring the world closer to mass adoption. For more about the Aptos ecosystem’s projects, please visit https://aptosfoundation.org/ecosystem/projects.

About Aptos Foundation

Aptos Foundation, is dedicated to supporting the development of the Aptos protocol, decentralized network and ecosystem and driving engagement with the Aptos ecosystem. By unlocking a blockchain with seamless usability, Aptos Foundation aims to bring the benefits of decentralization to the masses.

Aptos Network

Aptos is a next-generation Layer 1 blockchain. Aptos’ breakthrough technology and programming language, Move, are designed to evolve, improve performance and strengthen user safeguards. Please visit https://www.aptosfoundation.org for more information on the Aptos blockchain.

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Cryptocurrency

Harvard Students and Alumni Launch Groundbreaking Native Bitcoin Blockchain Project at Harvard Innovation Labs to Tackle Global Debt Crisis

Published

8 hours ago

September 20, 2024

[PRESS RELEASE – Singapore, Asia, September 19th, 2024]

Harvard Students and Alumni Launch Groundbreaking Native Bitcoin Blockchain Project at Harvard Innovation Labs to Tackle Global Debt Crisis

Launch of “New Bretton Woods Project” (NBW): A Harvard-led initiative, soon to be incubated at Harvard Innovation Labs, tackling the global debt crisis through decentralized finance (DeFi) solutions.
Native Bitcoin Stablecoin: NBW is developing a Bitcoin-backed stablecoin via BeL2 infrastructure, offering stability while preserving Bitcoin’s decentralization and security.
Economic Disruption and Resilience: The project aims to reshape global finance by leveraging Bitcoin and DeFi to promote economic stability and empower users in the face of rising global debt.

In a bold step to transform the global financial landscape, the Digital Economy Research Initiative, led by a dynamic group of Harvard students and alumni, has officially launched the “New Bretton Woods Project” (NBW). This pioneering blockchain-based initiative has secured membership in Harvard’s prestigious Innovation Labs and is set to begin incubation there in the coming weeks. NBW aims to tackle the escalating global debt crisis by offering innovative, technology-driven solutions.

At the heart of the project is the development of a native Bitcoin stablecoin, leveraging the transformative potential of decentralized finance (DeFi). Built on the innovative BeL2 infrastructure, NBW aims to reshape global financial systems, unlocking new possibilities for debt management and financial stability across nations.

With the power of DeFi and blockchain, NBW stands poised to disrupt the status quo, offering a bold new path toward economic resilience in the face of one of the greatest challenges of our time. This initiative signals not just a step, but a leap toward a decentralized, stable and secure economic future.

The project reframes Bitcoin as not just a store of value but the foundation of a decentralized financial system. Using BeL2—Bitcoin’s second-layer solution—the NBW project enables smart contracts for Bitcoin-backed stablecoin construction, empowering users to engage in decentralized finance while preserving Bitcoin’s core principles of decentralization and security.

“Harvard Innovation Labs will help turn our vision into reality,” said Jacob, Lead Member of New Bretton Woods (NBW) at Harvard University. “Our goal is to create a ‘New Bretton Woods’ system anchored in Bitcoin, bringing stability through the utility of a stablecoin. This stablecoin allows users to bypass Bitcoin’s price volatility while retaining the potential for long-term gain, making the product practical for daily use.”

The native Bitcoin stablecoin will be fully backed by Bitcoin, enabling users to experience the stability of fiat currency without liquidating their Bitcoin holdings. This offers a balance of algorithmic security using Bitcoin miners and the opportunity for long-term growth.

The BeL2 infrastructure allows for decentralized finance applications, where Bitcoin remains securely on the main network. Bitcoin can be used as collateral for Layer 2 applications such as decentralized exchanges, loans, and stablecoin issuance. The NBW team ensures that all Bitcoin-related settlements occur on the Bitcoin main network for maximum security. Instead of transferring assets across chains, messages are sent to Ethereum-compatible networks to issue stablecoin, uniting technologies and supporting a robust decentralized economy.

“Financial empowerment comes from both freedom and stability,” added Sasha Mitchell, Head of Operations at BeL2. “By offering a stablecoin backed by Bitcoin on the BeL2 platform, NBW is giving people a way to protect their wealth and access new financial opportunities, especially in times of economic volatility.”

“This initiative comes at a crucial time as global debt reaches record levels. By combining Bitcoin’s decentralized structure with the stability of a pegged currency, the project offers a financial system that mitigates the risks of traditional economies, highlighting the real-world benefits of financial security and sovereignty. Our stablecoin isn’t just another digital currency; it’s a tool for global financial stability,” said Jacob, Lead Member of the NBW project. “We believe that offering a decentralized and stable currency helps individuals and communities navigate the growing challenges posed by the global debt crisis.”

The NBW team invites those who share their vision for a decentralized and secure financial future to explore how they can contribute. Whether you’re a developer, an investor, or a policymaker interested in sustainable financial solutions, this project offers a unique chance to shape a future focused on security, accessibility, and freedom.

About New Bretton Woods Project (NBW)

The project is led by Digital Economy Research Initiative, a team of Harvard students and alumni. NBW is set to be incubated at Harvard Innovation Labs in the coming weeks. Focused on bridging the gap between traditional finance and decentralized systems, the team is committed to advancing financial inclusivity and economic stability.

About Harvard Innovation Labs

Harvard Innovation Labs is a collaborative ecosystem that supports entrepreneurship across Harvard University. It provides resources, mentorship, and funding to students, faculty, and alumni as they develop practical solutions in fields like technology and finance.

About BeL2

BeL2 is Bitcoin’s second-layer solution that enables decentralized finance (DeFi) while keeping Bitcoin secure on its main chain. By providing users with the ability to lend, borrow, and trade without intermediaries, BeL2 ensures financial freedom while preserving Bitcoin’s core principles of decentralization. With BeL2, users retain full control over their Bitcoin while accessing new financial opportunities.

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