In addition to the proprietary instrumentation that we utilize to measure greenhouse gases, we have also developed a proprietary blockchain-based software solution that enables asset owners to manage the complete digital life cycle of digital assets that are associated with their physical assets.
We have conformed our digital asset management technology to address opportunities in the carbon markets.
Our carbon credit asset management technology enables generators of carbon credits to manage the pre-issuance, issuance, and post-issuance phases of the life cycles of their digital assets.
This enables carbon credit generators to create digital assets on major blockchain networks, with the digital assets representing a specified amount (e.g. one metric ton) of carbon emissions that has been reduced in accordance with a specific carbon reduction initiative.
One aspect of the global carbon trading market is a lack of certainty regarding the underlying amount of actual carbon reduction that has taken place from an emissions reduction strategy. Purchasers of carbon credits typically align their organizations with carbon reduction initiatives that align with their business, brand, and the Sustainable Developments Goals of the United Nations.
As such, purchasers of carbon credits want to be certain that when they purchase carbon credits that represent actual carbon that has been offset, the carbon credits are then retired by removing the carbon credits from the market so that they can never be traded, swapped, or circulated again. This eliminates the possibility that purchases of carbon credits can resell them after claiming they have reduced emissions.
Similarly, with digital assets developed on our platform, the risk of so-called double spending can be eliminated through smart contracts that automatically burn or retire a carbon-related digital asset after it has first been purchased.
This capability maximizes the transparency and market integrity associated with individual carbon credits, and their corresponding digital assets.
We further enhance this transparency and market integrity by enabling the issuer of carbon-related digital assets to delegate authority to third parties, such as greenhouse gas compliance management program organizations or accredited carbon credit certifiers.
This authority enables permissioned third parties to exercise verification and validation discretion over digital assets that have already been digitally created, providing them with enforcement mechanisms to ensure their carbon credit issuance, standardization, and compliance protocols are adhered to.
Another benefit of our carbon credit digital asset management platform involves a proprietary digital marketplace where carbon credits can be purchased and sold on licensed and regulated trading venues, enhancing market liquidity and cross-market exchange opportunities.