Algorand To Launch First Carbon Emission Offsetting Smart Contract
- Algorand being a leader in the sustainability space, is continuing its efforts.
- The new smart contract will allocate a portion of every transaction fee to offset carbon emissions.
- On the charts, ALGO hasn’t been performing the best, though.
Thus, to further that commitment, the blockchain has implemented a new smart contract that will tackle the problem of carbon emissions.
Algorand for the Environment
Algorand has been one of the leaders in the sustainable development space by making sure that the chain does not rely on the energy-intensive proof of work consensus system.
Using proof of stake, Algorand achieved the status of being carbon negative and is now continuing down that path with the new smart contract.
This protocol will automatically allocate a portion of every transaction fee in order to offset its carbon emissions.
This comes after the chain partnered with ClimateTrade last year, a leader in CO2 emissions transparency and traceability that uses blockchain technology to improve the efficiency of sustainability efforts for corporations.
Commenting on the smart contract, the Vice President of Engineering Research at Algorand, Naveed Ihsanullah, said,
“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. 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.”
Algorand, although isn’t the only chain to be environmentally harmless, last year in December, Solana too achieved Carbon neutrality for 2021 thanks to carbon offsets. As Solana claimed, a single transaction used lesser energy than 2 Google searches by then.
Thus, as crypto becomes more mainstream, investors and developers are going to be looking for more environmentally sustainable options and might even move to them over higher energy-consuming options.
Algorand on the Charts
Even though it is doing well on the environmental front, the altcoin is failing to shatter ceilings when it comes to price action. Far away from a new all-time high, the cryptocurrency isn’t even close to marking a new local top at the moment, trading at $0.71.
It is much closer to losing its 14-month long-standing support of $0.684 than it is to recover investors’ losses. Guess the chain might need to save its investors more than it needs to save the environment if it intends to remain relevant in this quickly expanding world of crypto.