Algorand, the company that created the industry-first pure proof-of-stake foundational blockchain, has confirmed that it has reached carbon neutrality and has committed to being carbon negative in the future.
One of the most criticized aspects of blockchain technology is the fact that it is ecologically unsustainable and produces damaging carbon emissions. This is a problem for the entire crypto sphere, from DeFi to NFTs, from the blockchains of Ethereum to Bitcoin.
“Algorand is experiencing accelerated adoption and network expansion. As this period of hyper-growth continues, we find it crucial to operate at a carbon-negative level. Indeed sustainable growth is way better than growth,” declared Silvio Micali, the founder of Algorand.
He also added: “We understand that the mechanics of measuring the environmental impact of a global, decentralized and widely used blockchain are nuanced and complex. That’s why we are teaming up with ClimateTrade to continue and double-down on our eco-conscious efforts.”
Algorand has stated that transactions and digital assets on its blockchain are responsible for less CO2 emission. Some preliminary analysis shows that around 2 million times fewer carbon emissions were registered when compared to proof-of-work blockchains.
The company works with ClimateTrade, a Spanish fintech company that helps firms achieve sustainability goals by offsetting carbon emissions and support climate change initiatives financially. ClimateTrade has its own blockchain marketplace with an API that allows the purchase of carbon-neutral products and services.
“Clean energy and addressing climate change are priorities for the United Nations, global organizations, and governments alike. Algorand has a very low carbon footprint, to begin with, and we are inspired by the leadership role the organization is taking to ensure the next generation of blockchain adoption is environmentally friendly,” revealed the CEO of ClimateTrade CEO, Francisco Benefito.
The companies are working at making Algorand a carbon-negative network so that it would stop producing carbon emissions completely in the future.