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

The environment is now a global priority, evidenced by the threat of rising carbon dioxide emissions reaching 414.72 parts per million, a new record high in 2021, as reported by the United States’ climate agency, the National Oceanic and Atmospheric Administration. Given the impact of these emissions on climate change, many countries have made their mission to reduce their carbon emissions public. For example, the United States has openly communicated its plan to measure environmental assets through the Bureau of Economic Analysis.

However, for many sectors it is impossible to achieve absolutely zero carbon emissions; Carbon offsetting becomes crucial to counteract residual emissions. In this model, organizations can offset residual emissions by investing in carbon absorbing projects. Carbon offsets then become a way to track the number of credits a person or organization needs to be carbon neutral.

Consequently, 1GCX President and Founder Michael Wilson shares:

“Environmental commodities, a class of assets that exist as intangible energy credits, are now recognized as the key drivers of value creation over the next 10-50 years.”

Consider that the traditional way the world views energy and, more importantly, value is also likely to change as the environment and carbon become one of the top priorities for the world. As more countries begin to operate with an energy credit-first approach, dollar-denominated value and debt that may never be repaid may no longer be sustainable.

Value, which is a construct of perception, can shift for countries to recognize intangible energy credits — more specifically, carbon credits — in their balance sheets. Spotting energy over dollars makes sense given how significant the US debt is and how repaying it requires a budget surplus not seen in the country since 2001.

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Unify the carbon market

There is currently no unified carbon market solution that allows participants to quickly and seamlessly understand the value of carbon commodities. Today, several private companies offer carbon offsets to companies or individuals, each representing investments in forestry or other projects with a negative carbon footprint.

Alternatively, buyers can buy credit on a carbon exchange, but unfortunately traditional finance (TradFi) has a bad reputation for being archaic and part of an oppressive system. High-quality carbon credits are rare, partly because verification methods vary.

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

Michael Wilson further shares:

“Freedom begins and ends with choosing to be responsible for yourself and your world, especially the environment around you. Trade, economy and currency are at the heart of our civilization. If freedom is to be ideal, then the only way forward is one of freedom and responsibility. Cryptocurrency brings money, value, systems and philosophy to the forefront of people’s minds. We are standing at an abyss, a new age is upon us, and the choice is one of consciousness, this is the path we will walk.”

A commodity-first approach

1GCX addresses these concerns head-on. The exchange represents a green technology that can bring the benefits of new markets to cryptocurrency market valuations by highlighting their most promising projects. The resulting two-way bridge for carbon offset trading becomes part of a broad, holistic marketplace that can facilitate adoption, education, and connection across the crypto industry.

Unlike others in the industry, 1GCX has adopted a market-driven, commodity-focused approach to reshaping its financial markets. Additionally, the inclusion of pairing and cross-application of crypto, commodities, and carbon credits sets this platform apart from other exchanges. For users, this means a new user experience for trading on the platform with access to live carbon and energy markets. Hence, 1GCX becomes an ecosystem that starts with a marketplace for ordinary people to gain access to one of the best kept secrets in global finance – carbon commodities, also known as natural asset capital.

Looking at the rest of the ecosystem, users are faced with transformative offerings centered on tokenized bonds, known as black bonds, and new payment systems that integrate crypto with crypto-commodity pairings.

As of May 11, 2022, 1GCX continues to offer Bitcoin (BTC), Dogecoin (DOGE), Ether (ETH), USD Coin (USDC) and Tether (USDT) trading pairs, as well as some less common trading pairs against not only those on US Dollars, but also the Canadian dollar, the euro and the British pound, among other well-known digital assets and physical commodities. Building on the best foundations of TradFi, the platform’s exchange has decided to add new cryptocurrency assets every week. It also shares roadmap plans for creating the first digitized CO2 assets from a variety of offset verifiers around the world. These assets are expected to be available for trading as early as the fourth quarter of 2022.

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

RA Wilson, Chief Technical Officer of 1GCX, reiterates the company’s mission:

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

The material is provided in cooperation with 1GCX

Disclaimer. Cointelegraph does not endorse any content or products on this site. While we aim to provide you with all the important information we are able to obtain, readers should do their own research before taking any action regarding the company and take full responsibility for their decisions, and this article can nor should it be considered investment advice.

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