Algorand's smart contract for network sustainability automatically offsets minimal carbon emissions forever
NEW YORK, April 21, 2022 /PRNewswire/ -- Algorand, the blockchain transforming business models of all kinds, today announced it will implement the first smart contract to automate the offsetting of carbon emissions. Doubling down on its commitment to the environment, the network's new self-sustaining smart contract automatically allocates a portion of every transaction fee to offset its carbon emissions.
Sustainability has been a core component of Algorand since its inception. Designed to be energy-efficient, the Algorand network has never experienced any downtime. Its unique pure proof-of-stake consensus mechanism requires minimal energy and fees, while delivering high speed, security and instant finality.
"Climate change is among the most pressing issues the world faces today. Efficiency and a minimal energy consumption footprint simply must be table stakes for all enduring future technology," said Naveed Ihsanullah, Vice President of Engineering Research at Algorand. "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 technology to improve the efficiency of sustainability efforts for corporations. Leveraging ClimateTrade, a verifiable carbon credits marketplace running on the Algorand blockchain, the smart contract can now leverage a portion of network transaction fees to purchase required carbon credits in line with the growth of the network.
As the world's first pure proof-of-stake blockchain, Algorand was designed from the ground up to minimally impact the environment. Because its consensus is not based on energy-intensive proof-of-work and requires minimal computational power or electricity, Algorand has been a leader in sustainable blockchain technology. Compared to the Bitcoin blockchain, digital asset creation and transactions on Algorand result in 120 million times less CO2 emissions.
Thanks to its leadership as an eco-friendly technology, Algorand is seeing increased adoption by organizations that are aligned in their focus on sustainability, including PlanetWatch, GlobalCarbon Holding, ClimateTrade and more.
As part of Algorand's commitment to sustainable innovation, it has partnered with outstanding environmental focussed organizations, such as Climate Ride, Premios Verde, Envision Racing and SailGP, who are dedicated to spreading the message of sustainability, environmental responsibility and innovation as the template for a vibrant, sustainable future.
Algorand is transforming business models and economies of all kinds. Founded by Turing Award–winning cryptographer Silvio Micali, Algorand's high–performing Layer-1 blockchain is unparalleled for bringing fast, frictionless, and inclusive technologies to everyone. Algorand is reshaping every industry–from TradFi and DeFi to new creator economies and beyond. With an extraordinary commitment to interoperability and consistent delivery, our sustainable technology powers more participation, transparency, and efficiency for all. As the technology of choice for 2000+ global organizations, the Algorand ecosystem is transforming the next generation of financial products, protocols and exchange of value. For more information, visit www.algorand.com.
About The Algorand Foundation
The Algorand blockchain — designed by the MIT professor and Turing Award winning cryptographer Silvio Micali — is uniquely capable of delivering on the promise of a borderless global economy. It achieves transaction throughputs at the speed of traditional finance, but with immediate finality, near-zero transaction costs, on a 24/7 basis. Its carbon-neutral platform and unique pure proof-of-stake consensus mechanism solves for the "blockchain trilemma" by achieving both security and scalability on a decentralized protocol, and without a second of downtime since it went live in 2019.
The Algorand Foundation is dedicated to helping fulfill the global promise of the Algorand blockchain by taking responsibility for its sound monetary supply economics, decentralized governance, and healthy and prosperous open-source ecosystem. For more information, visit https://algorand.foundation
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