U.S.-based multinational IBM is joining forces with Hong Kong’s Veridium Labs to use blockchain, the distributed ledger technology, to increase the efficiency in the carbon-credit market and make the process of offsetting carbon credits easier.
Using IBMs expanding blockchain technology and expertise, the environmental financial technology company will issue and manage the tokens on the Stellar network. The move is a further step for Veridium Labs in pursuing environmental protections through distributed ledger technology.
“For years, we’ve been trying to mitigate environmental impacts at every point in the value chain, however previous solutions still presented significant complexities and costs,” wrote Todd Lemons, CEO and co-founder of Veridium in a press release. “Our work with IBM is the first step in dramatically simplifying the accounting and offsetting processes, and therefore ultimately helping reduce costs.”
, it’s further expansion of its growing blockchain development to improve business integrity. On April 26, IBM announced its distributed ledger technology would allow U.S. retail jeweler Helzberg Diamonds to track diamonds throughout the supply chain to help verify authenticity.
As well as the social initiative, this partnership is aimed at helping to fix a costly and inefficient market.
“With no centralized exchange for exchanging carbon footprints, it’s essentially a market failure,” said Jared Klee, blockchain offering manager at IBM. “[The technology] should enable companies interested in offsetting their carbon footprint to do so with less friction. It will be faster easier and more cost-efficient.”
Klee added that he hopes this initiative can expand beyond companies. “Over time we hope individuals can offset their impacts, but will likely require some change in the technology.”