ReFi aims to build a more sustainable and inclusive global economy for future generations through blockchain technology and crypto rails (payments, rewards, and tokens). Each and every industry, in one way or more, has consumer activities that impact the climate. ReFi-powered projects are emerging worldwide to address these challenges.
The year 2023 will witness exciting Web3 projects focused on leveraging crypto and blockchain to accelerate the path to the low-carbon economy. New venture funds focused on ReFi are being launched to accelerate these projects.
The ReFi sector for climate change has been linked to bringing more transparency to the global carbon offset market. Many layer 1 blockchains and layer 2 scaling solutions are encouraging and paving the way for low-carbon economies. They are also creating ecosystem funding to promote ReFi projects to deploy on their blockchains.
ReFi is a new economic approach to creating positive changes for the world as well as financial returns with the help of blockchain technology. In investments to save our planet from the destruction of climate change, blockchain technology will start a new era with sustainable and transparent solutions.
Blockchain significantly improves transparency, accountability, and traceability of greenhouse gas emissions. It helps organizations provide more accurate, reliable, standardized, and readily available data on carbon emissions.
Blockchain-powered smart contracts to calculate, track, and report on reducing the carbon footprint across the entire value chain. It provides instant authentication, verification of real-time data, and precise data records.
Blockchain transforms the individual efforts of organizations into a networked system. It pinpoints individual actors' contributions; the spirit of competition and market-based incentives create a win-win situation for all.
Clean technology businesses play a critical role in this process. They aid in creating blockchain-based platforms that connect all stakeholders, including organizations, governments, and individuals.
Blockchain allows for tracking and reporting of reductions in greenhouse gas emissions along the entire supply chain, including manufacturers, suppliers, distributors, and consumers.
Tokenized carbon solves critical market issues and helps to scale carbon markets beyond their current limitations rapidly.
Immutable data that is publicly available on all platforms. The data includes volumes traded, transferred, and terminated.
Tokenized carbon can be integrated into IT and Web3 applications, and anyone can visualize and explore market data.
Tokenized credits allow builders, activists, and corporates of all sizes to participate in the carbon revolution.
Using advanced smart contracts brings greater visibility and trust, removing the volume of market intermediaries and reducing fees.
ReFi offers climate-centric protocols for participants in the Web3 space. Drive new business opportunities and start from developing MVPs to actual products with programmable tokenized assets.
ReFi increases the value of credits an individual or a business has acquired and allows the tokenization of those credits into digital assets. This opens up new sales channels for credit suppliers.
Corporations wanting to buy credits can do so by sourcing credits without the need for intermediaries. They can automate the carbon acquisition processes and engage with customers quickly.
Companies using energy resources are connected with IoT-powered smart electricity meters. They generate readings for evaluating the carbon footprints consumed by an organization. It is essential to know the data type, how it is created, and where it is generated.
Data cleaning is done to add more value to the data by structuring it. The information to be saved on the blockchain should be structured, accurate, secured, and time-stamped. Data can be filtered by removing duplicate data, making data compliant, and adding metadata.
The smart contracts are triggered to calculate carbon footprints based on energy sources, meters efficiency, conversion factor, and greenhouse gas emission. They help create a reliable and authenticated report containing the company’s carbon consumption for a period.
Organizations within the blockchain network can access a company’s tamper-proof records of carbon footprints. To utilize carbon emissions, companies can do carbon trading to control pollution levels by incentivizing companies that achieve emission reductions.