Blockchain-based infrastructure is creating the future for carbon markets, crypto and commodities


The environment is now a global priority, as evidenced by the threat of rising carbon dioxide emissions to 414.72 parts per million, a new all-time high in 2021, as reported by the United States’ National Oceanic and Atmospheric Administration for Climate Change. Given the impact of these emissions on climate change, many countries have published their mission to reduce their carbon emissions. For example, the United States, through the Bureau of Economic Analysis, has openly communicated its plans for measuring environmentally friendly raw materials.

However, for many sectors it is impossible to achieve net zero CO2 emissions; Carbon offsetting becomes important to offset residual emissions. Under this model, organizations can offset residual emissions by investing in projects that absorb carbon. The carbon offset then becomes a way of tracking the number of credits a person or organization needs to be carbon neutral.

As a result, Michael Wilson, president and founder of 1GCX, shared:

“Environmental commodities, a class of assets that exist in the form of intangible energy credits, are now recognized as the major value creators over the next 10-50 years.”

Consider that as the environment and carbon become a top priority for the world, the traditional way the world views energy and, more importantly, its value, is likely to change as well. As more countries begin to adopt an energy credit-first approach, US dollar-denominated debt and debt that may never be repaid may no longer be sustainable.

The price, which is a construct of perception, may shift for countries to recognize intangible energy credits – more specifically carbon credits – on their balance sheets. Recognizing energy above the dollar makes sense considering the size of US debt and paying it off requires a budget surplus, something the country hasn’t had since 2001.

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integration of carbon markets

Currently, there is still no unified solution for carbon markets that allows participants to quickly and seamlessly access the price of carbon commodities. Today, many private companies offer carbon offsets to companies or individuals, each representing an investment in forestry or contributing to other projects with a negative carbon footprint.

Alternatively, buyers can purchase credits on the Carbon Exchange, but unfortunately traditional finance (TradeFi) has a bad reputation for being part of an outdated and oppressive system. High-quality carbon credits are scarce because verification methods differ for other reasons.

For this reason, 1GCX believes that taking the best parts of TradFi and merging it with blockchain will prove to be the only solution that can support the global transition to this new value system.

Michael Wilson continued to share:

“Freedom begins and ends with the decision to be responsible for ourselves and our world, especially the environment around us. Trade, economics and currency are at the core of our civilization. If freedom is to be ideal, then freedom and responsibility is the only way forward. Cryptocurrency brings money, values, systems and philosophies to the forefront of people’s minds. We are on a precipice, a new era is upon us and the choice is one of consciousness: how do we move forward?

an object-first approach

1GCX directly addresses these concerns. The exchange represents a green technology that can benefit new cryptocurrency market valuation markets by highlighting the most promising projects. The resulting two-way carbon offset trading bridge becomes part of a broader, holistic marketplace that can facilitate adoption, education, and connections in the crypto industry.

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Unlike others in the industry, 1GCX has incorporated a market-making, commodities-first approach into its financial markets redesign. In addition, this platform differs from other exchanges by integrating the linkage and cross-application of crypto, commodities and carbon credits. For users, this means a new user experience for trading on the platform with access to live carbon and energy markets. That’s why 1GCX aims to become an ecosystem for everyday people to access one of the best kept secrets in global finance: carbon commodities, also known as natural capital. Will go

Looking at the rest of the ecosystem, users will come face to face with transformative offerings centered around tokenized bonds, called black bonds, and new payment systems that integrate crypto with crypto-commodity pairs.

As of May 11, 2022, 1GCX will continue to offer trading pairs with Bitcoin (BTC), Dogecoin (DOGE), Ether (ETH), USD Coin (USDC), and Tether (USDT), and some less common trading pairs. Not only the US dollar, but also the Canadian dollar, the euro and the British pound among other well-known digital assets and physical commodities. Built on the best foundations of TradFi, the platform exchange is committed to adding new crypto assets every week. It also shared a roadmap to create the first digital carbon asset from several offset validators around the world. These properties should be available for trading in the fourth quarter of 2022.

Unlike current private exchanges, 1GCX offers smooth and fast settlement with low fees. For new users, this means access to one of the most accessible platforms to use, even if they’ve never used a traditional exchange before.

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RA Wilson, CTO of 1GCX, reiterated the company’s mission statement:

“Our economic principles of open and transparent markets begin with increasing capital flow and accounting for unavoidable emissions through the use of free market solutions such as carbon offsets that benefit everyone.”

Content provided in partnership with 1GCX

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