I recently found this early development project that goes by the name of Changeblock. They are extremely interesting to me as although they are new, their value proposition is one which I think can disrupt the entire carbon credit industry.
If you don’t know, governments around the world issue these things called carbon credits. One carbon credit = 1 tonne of CO2 or greenhouse gas emission. The basic idea behind this is carbon credits introduce an artificial cap on the amount of CO2 emissions a company can produce in any one year. If they are a green company they have more credits left over, which they can sell to companies that need to emit more greenhouse gas (an airline for instance). The result is the net amount of CO2 emissions should stay within a certain amount each year.
As it currently stands, the methods for trading these greenhouse gas credits (GHG credits) are inefficient, riddled with intermediaries and often rife with fraud. This can lead to the double counting of carbon credits (which defeats their entire purpose), expensive transaction fees to trade them and a slow transfer of these assets around the world to parties who need them.
Changeblock is at its heart a climate exchange, however it does so much more. It will use the qualities inherent to blockchain to solve the previously mentioned problems. As one part of their value proposition they will tokenise GHG assets on chain allowing them to be sent globally in a trustless, immutable and accessible manner. Changeblock will upload the relevant audit documentation of the GHG credit to the blockchain and most crucially, will allow individuals to cash in their tokenised asset for the underlying asset off chain if they so wish.
The Changeblock protocol will issue a few tokens. These include CHNG, CBLKs and CBT’s. CHNG is a governance token, it will be used to vote on proposals that steer the direction of the protocol. This makes Changeblock a DAO. It will also be used when minting a CBT, withdrawing a CBLK/CBT for the underlying assets or to pay the transaction fees of the protocol.
A CBT is a tokenised GHG credit. This can be from various projects/vintages/parts of the world. To enhance liquidity, CBTs can be pooled with similar CBTs to form CBLKs. For example, forestry CBTs can be combined to form a Forestry CBLK. CBLKs can allow individuals to gain exposure to a wide array of assets, similar to investing in an index.
Changeblock plans to do so much more which I wont get into on this post, however they outline all of the system’s current capabilities in their pre-release whitepaper on their website at Changeblock.com. They have an all star team which you can look into on their about us section, which includes people from the original team that created the concept of carbon credits. To conclude I think that Changeblock can be a massive player in the Trillion dollar climate markets. They stand to capitalise on the two largest trends of this decade, climate and blockchain. I really think that it’s a diamond in the making and as it’s super early days, it’s a huge opportunity to get in early.