Algorand Can Now Convert Transaction Fees Into Carbon Offsets

April 23, 2022 12:56 pm

Algorand has recently launched a new smart contract that will allow the blockchain to automatically use a portion of all its transaction fees to purchase carbon credits from ClimateTrade.

This is part of Algorand’s broader strategy to not only be carbon neutral, but also carbon negative while still allowing the blockchain to be able to scale over time.

So far, there are only a handful of projects that have such a large focus on being environment friendly and the move will likely entice other projects to do the same in order to stay competitive.

The market for carbon credits is expected to grow over time and become high in demand among institutions in the future so getting in now could potentially provide large rewards for early investors.

CoinTelegraph reports:

According to Algorand Foundation CEO Staci Warden, the move will allow the network to scale while still being carbon negative.

Warden told Cointelegraph that the smart contract will ensure that their blockchain remains eco-friendly in the long-term and hopes that other firms do the same.

“We hope this encourages our partners and other blockchain protocols to lower their carbon footprint,” said Warden. She explained that all tech companies have a responsibility to help build a sustainable future, and their team is happy that they are able to provide a blueprint on how this can be achieved.

The CEO also praised the blockchain industry’s efforts to be more eco-friendly. Warden said that:

“The industry is moving in the right direction by adopting proof-of-stake as the preferred consensus mechanism. While there are certainly valid criticisms against Bitcoin and proof-of-work, the future is bright.”

The Algorand Foundation had made the pledge to become a carbon negative blockchain back in 2021 and it seems like they have already achieved that goal.

As part of its initiative to integrate its network transaction fees with the purchasing of carbon credits through its partnership with ClimateTrade, the impact that Algorand has on being a sustainable network can accurately be measured.

The company is going big on their message and celebrated Earth Day by taking over Times Square and making it do dark to bring awareness.

This is only the first step in improving Algorand’s smart contract functionality and investors are expecting future upgrades to increase even more valuable functionality for developers.

U.today reports:

In March, Algorand Network announced an upgrade to include contract-to-contract calls in its smart contract functionality.

The upgrade also aims to release post-Quantum Secure Keys for Trustless Cross-Chain Interoperability.

With smart contract-to-contract calling, developers can now design complex apps for the Algorand ecosystem, and network members can take the first step toward trustless cross-chain interoperability with quantum-secure keys.

These network upgrades follow the Algorand Foundation’s $20 million incentive program focusing on developer tooling and EVM compatibility.

Algorand’s ALGO trades at $0.728 at the time of publication and is ranked the 31st largest cryptocurrency in terms of market valuation, according to CoinMarketCap data.

The recent developments will continue to provide more value to the network’s native token ALGO as the network continues to expand in this market sector.

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