Blockchain technologies are innovating the carbon markets space. Climate tech and web3 start-up Thallo and BioCarbon Registry – a carbon marketplace announced they will create the world’s first two way bridge between a registry and the blockchain.
The breakthrough means the carbon credit could be moved on and off the blockchain without the risk of double accounting or lack of traceability. The process aims to reduce the barriers between potential buyers looking for high-quality Verified Carbon Credits (VCC) from nature-based solutions projects.
The announcement represents the first ever instance of a carbon registry that includes the tokenization of carbon credits. The credits will be made available on the Polygon network.
“This breakthrough is the first concrete step towards unifying the traditional carbon markets and the on-chain, tokenized carbon credit market and is a great example of what can be achieved through collaboration,” said Joseph Hargreaves, Thallo Co-Founder and Chief Strategy Officer.
Thallo is a voluntary carbon market that leverages the world of tokenomics and blockchain technology to remove traditional carbon market barriers like lack of trust, credibility and transparency.
Recently, Thallo announced it is integrating Chainlink Proof of Reserve to provide best-in-class automated verification and monitoring from selected registry partners. Chainlink Proof of Reserve will help bring transparency to the market as users of the Thallo bridge will be able to verify the underlying collateral in near real-time.
The world’s first two-way bridge that the companies pioneered gives an example and a blueprint for safe tokenization of carbon credits. It provides voluntary carbon markets the opportunity to scale while ensuring the highest integrity.
“Facilitating two-way interoperable Web3 bridges for carbon registries are critical to the digital evolution of this asset class, and I am excited to break new ground in the Voluntary Carbon Market,” commented Charlie Moore, Chainlink Labs head of Carbon and Sustainability.