The tech titan IBM is emitting its ever-first token. For that, the multinational company, headquartered in New York, will use public blockchain, provided by Stellar.
Notably, by such an act, IBM is going to kill two birds with one stone. Firstly, it will keep adapting to the emerging technologies, and, secondly, it will contribute to the protection of the environment. How? Here are the details.
IBM To Offset Climate Change With… Tokens?
IBM has recently informed that it has signed a deal with an environmental, financial technology startup Veridium Labs, which is also known as “carbon credits” startup. The two are going to partner on the issuance of a virtual token on the Stellar blockchain, Forbes reports.
The novel tokens are called “verde” (which can be translated from Spanish as “green), and they are generated to help environmentally unfriendly businesses compensate the damage. Thus, they will be able to support clout of rainforests in Indonesia.
As it is known, carbon credits are a permit thanks to which countries can produce a particular quantity of carbon emissions. And if the full number of these credits is not used, they can be sold.
This permit is not new. However, it is indeed time-consuming to trace someone’s history of pollution and to check whether the funds were used to replenish the nature. Moreover, it is not that transparent.
Jared Klee, a new blockchain offering manager at IBM, explained that the blockchain could be a solution to this problem. Firstly, the DLT can speed up the tracking process and make it less opaque as, in fact, everybody will be able to get access to it. Secondly, credits will be tokenized, hence, it will be possible to sell them in other ways distinct from fiat transactions.
The “verde” tokens will be built on top of the Stellar blockchain. All the collected funds from their vending will be used to reforest a 250-square territory on Borneo (Indonesia).