In a statement from computer giant IBM has announced that they signed a business alliance agreement with Veridium Labs,an environmental fintech startup, and that the two companies will work together to produce a cryptocurrency token on the Stellar Blockchain.
The two companies will work together to try to do something environmental. They will tokenize carbon credits. This will enable the companies that cause heavy pollution to balance their damages to the environment. “Verde” token will be used to reforest an Indonesian rainforest that has a 250 square mile patch on the Borneo Island.
Reducing Harmful Gas Emissions to the Atmosphere by Stellar Blockchain
As is known, each company has a special carbon consumption credit, and the criterion for evaluating these credits is quite difficult. It is also difficult to hold on a traditional balance sheet for them. The companies are working together to find a solution, which aims to reduce harmful gas emissions to the atmosphere, using Stellar Blockchain.
Todd Lemons, co-founder and CEO of Veridium, said in his statement:
“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…Our digital environmental assets are designed to help companies and institutional investors purchase and use carbon credits to mitigate their environmental impacts today, and even hedge their potential carbon liabilities risks in the future.”
The important part is that this is not a pilot program. IBM has already collaborated with Stellar and will be using this partnership. In this new token project, it is targeted that token will not be confined to only certain companies and will be distributed worldwide through a public network.
Bridget van Kralingen, head of IBM’s Blockchain research unit, expressed satisfaction using the following expressions:
“By using a public, permissioned blockchain network, we can help Veridium create a new sustainable marketplace that is good for business and good for the World…This is a great example of how industries are being reinvented by blockchain, in this case establishing a far more efficient and transparent approach to carbon accounting and offsetting that will empower individuals and companies to play a role in improving our environment”.
