Current global emissions and energy asset management solutions, regarding Carbon and Renewable Fuels (RIN) Credits, lack transparency, security, fairness, and simplicity. Carbon off-sets and RIN credits need to be real, measurable, and provable.
By establishing a decentralized Blockchain based Emissions Regulation/Trading Platform and Energy Network, these issues and many others can be addressed. This is achieved by reducing the costs related to Administrative Duties through improved process efficiencies and guaranteed compliance with all Global, Federal, State and local statutes.
Carbon Chain Energy (CCE) is a Carbon Assets Management and Solutions Provider currently developing a fully integrated Blockchain distributed ledger platform based on the Hyperledger Architecture. Hyperledger has been specifically developed as a Blockchain Business Solutions Platform with Hyperledger 1.0 being launched in March, 2017. CCE has validated the applicability of the Hyperledger and is currently in the Proof of Concept (PoC) Phase with IBM and Decentral for applications to further facilitate CCE’s Business Operations.
This new platform will be used initially by CCE to support its renewable fuel projects. The first project, Carbon Chain Energy Renewable Fuels (“CCERF”) has been in development since 2012, and will be located on a 40 acre project site in Williams, Arizona approximately 30 miles west of Flagstaff.
Blockchain provides a sustainable and secure platform which is both Transparent and Efficient. By establishing a secure peer to peer ledger which relies upon the Nodes (Data Access Point) on the Network for Consensus of Transactions, the potential for corrupted entries becomes significantly reduced. Once a transaction is approved via mutual consensus a block of information is created. Multiple blocks create a chain, this chain of data is complete, consistent, timely, accurate, and widely available throughout the network.
There are different types of Blockchain algorithms such as Proof of Work or Proof of Stake. Bitcoin, the original blockchain, is based on Proof of Work which requires large amounts of energy to verify each block. Verification occurs via Miners*, and a block is created on the chain. As each new block is created the chain becomes longer and both the time and energy required for each block increases. This process has proven to be secure, however it is both costly and inefficient.
Miner*- a node on the blockchain network tasked with performing mathematical equations to show proof of transactions.
For those who have heard of Blockchain, chances are they have heard of Bitcoin and Ethereum. Until the release of Ethereum, blockchain was limited to peer to peer transfer of funds. Ethereum was the first blockchain developed specifically for business. It incorporates a Smart Contract Function with the Ethereum Virtual Machine. Essentially, a Smart Contract is a digital version of a traditional contract. These smart contracts can be programmed to self execute once conditions of the contract have been met. This makes up the basis of the Ethereum Virtual Machine and eliminates the need for third party intervention.
There are many drawbacks to both Bitcoin and Ethereum. They are both Proof of Work algorithms which require a significant amount of energy to function. Another critical issue with proof of work, pertaining to Ethereum and Bitcoin, is that a majority validation function could theoretically enable any entity controlling over 50.1% of the Network to validate false transactions. The purpose of Bitcoin was to establish a Distributed Ledger and secure system yet as the system grows, it becomes more centralized and therefore more susceptible to being corrupted.
When talking about optimized and secure Blockchain Platform for Business, but more Specifically for Carbon Chain Energy we have realized we need a Proof of Stake Smart Contract Platform which provides us with all of the benefits and eliminates the drawbacks from what is currently the industry standard. As a Sustainable Business Solutions Developer we understand Proof of Work is very energy intensive and would significantly increase our carbon footprint. When looking for a plug and play solution we realized that we were going to have to develop this solution ourselves, this is the Platform which is to become the backbone of Carbon Chain Energy.