- Thallo, a carbon credit issuer registered with the BioCarbon Registry, has tokenized carbon credits onto the Celo blockchain.
- Credits will be bridged between the registry and the L1 through Thallo’s innovative Two-Way Carbon bridge.
Thallo’s two-way bridge serves as a conduit enabling the secure movement of carbon credits from a central registry to the blockchain. Carbon credits are measurements of emissions that have been standardized and turned into tradable units per metric ton; emissions trading involves swapping these units.
Two-Way Carbon Bridge
The main feature of the two-way bridge is its capacity to maintain a link between the representation of carbon credits on the blockchain and the fundamental credit on the registry. This connection guarantees that any transaction or retirement of the credit is instantly mirrored on both platforms, mitigating the risk of credits being double counted. Bridging carbon credits onto a blockchain creates tokenized carbon credits.
A significant advantage of the Two-Way Carbon Bridge is its capability to execute carbon credit retirements on the blockchain, concurrently reflecting them on the registry. Retiring a carbon credit refers to the tonnage of emissions it represents being ultimately used up by credit purchasers to offset their emissions. Retiring a carbon credit permanently removes it from circulation in the market.
Furthermore, the Thallo bridge introduces fairness by incorporating a royalties feature. In cases where a carbon credit is traded instead of being retired, a portion of the secondary trade revenue is directed back to the original project developer.
The transparency and immutability of blockchain guarantee that every transaction and action associated with carbon credits is documented and verifiable, instilling a heightened level of trust in extremely corrupt emissions trading markets. Incorporating carbon credits into the Celo blockchain via Thallo’s Two-Way Carbon Bridge constitutes a significant stride in pursuing sustainable and impactful ReFi projects.