According to the report, blockchain technology is the key to combating climate change

According to the report, blockchain technology is the key to combating climate change

Blockchain technology will play a key role in combating climate change by manage clean energy solutions and enables improved automation, according to a report by Chainlink Labs and Tecnalia.

chainlink laborator offers the Open-Source-Blockchain-Interoperability solutions, and a European research institut tecnalia set up in a Test report Tuesday that the energy industry can make investments in clean energy more efficient by using blockchain technologies.

By using blockchains, the energy business can better digitize and evaluate investments in clean energy, according to the report. This would probably lead to additional capital for green investment options, more transparency and a greater obligation to account for the fulfillment of climate -friendly obligations, the two companies stated.

The report describes "Hybrid Smart Contracts" as the new backend framework that is required for the structure of clean energy solutions. The framework uses blockchains to pursue processes with several parties, and smart contracts to define the rules for the parties involved.

It also uses oracle or interoperability solutions for blockchains that build on intelligent contracts-to integrate data and non-blockchain infrastructures into the contracts.

More than 140 research projects and start-ups have started to examine, test and use blockchain-based solutions since 2019 to improve the processes of the energy industry, the report.

"Since more and more companies can see how blockchains, intelligent contracts and oracle can advance climate protection initiatives, we will recognize a trend that will only increase over time until it becomes an industrial standard", A Chainlink Labs spokesman said Blockworks.

The applications described in the report include CO2 credits in tokens that companies buy to compensate for emissions. By storing CO2 certificates as digital tokens, the token can be followed more easily and acted, and they can then issue and check oracle.

oracle can use satellite and remote sensing data to measure carbon binding in a certain region to check the specified carbon compensation of a project before a credit is issued.

The hybrid smart-contract system Hyphen, for example, uses chainlink oracle to put verified greenhouse gas data into the chain and to prove the declared climate obligations of the companies.

"We can now deliver validated real measurements for dynamic carbon systems," said Miles Austin, CEO of Hoghen, in a explanation. "This gives investors, capital markets, banks trust [and] regulatory authorities."

like the tokenization of carbon loans, climate bonds and green bonds - fixed -interest instruments that collect money for environmental projects can also be token on blockchains.

Ethereum-based platform for climate ratios Arbol Used to support Smart Contracts and To secure sales fluctuations in changing temperatures.

According to the report, individuals could also receive incentives through reward programs to reduce emissions. Consumers could be compensated with crypto or NFTS if they meet the requirements of an intelligent contract that aims to minimize their CO2 footprint.

In the future, the leading companies in the industry for clean energy researchers will have to commission to focus on the advantages of blockchain technology and how they can use intelligent contract and oracle technologies in front of competitors.

"What you discover will motivate you to act," added the spokesman. "And this dynamic on industry level will help to make the turning point easier that we need to realize a more sustainable future."

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The article Blockchain Tech is key to combating climate change, Report Says is not a financial advice.