As concerns about environmental impact grew, the market began to demand a framework that allows projects to accurately showcase their ecological implications. As a result, the climate-focused data tracking project Hyphen has discovered a market gap that it is eager to fill.
“Corporations must be able to accurately track and report their scope 1, 2, and 3 emissions in order to establish baselines from which to work in order to meet climate commitments,” says Hyphen CEO Miles Austin.
With the help of a Chainlink grant from 2021, the project is now launching a decentralized oracle network (DON) that gives smart contracts access to a verified resource, beginning with nitrous oxide (N2O). This sparks the development of a reporting ecosystem that holds corporations accountable for their emissions and allows for climate disclosures to meet regulatory requirements.
According to Miles Austin, CEO of Hyphen, the project provides “timely data flows of climate emissions information from global sources to both the private sector and public sector.” With this, capital markets are able to use “real-world climate data” as they strategically plan for sustainability.
“Corporations must be able to track and report their scope 1, 2, and 3 emissions accurately in order to establish baselines from which to work in order to meet climate commitments.”
Thierry Gilgen, CTO of Hyphen, claims that the platform provides “validated and trustworthy data streams” to emerging financial ecosystems based on blockchain or distributed ledger technology. Data reported by companies will also go through a decentralized and independent verification process with the Chainlink DON. It eliminates the possibility of fraudulent or inaccurate reporting.
“We use Chainlink nodes to validate and make available data from scientific organizations for smart contract use, in order to build comprehensive climate tracking and regulatory services for governmental organizations, financial institutions, and enterprises bound by the new green finance/climate regulations emerging globally.”
The first launch includes N2O data from the Integrated Carbon Observation System, which is based on the Montreal Protocol framework, a global treaty that protects the ozone layer.
While the debate over the environmental impact of cryptocurrency continues, recent reports show that Bitcoin (BTC) mining accounts for only 0.08 percent of global carbon dioxide emissions. The network emitted 42 megatons (Mts) of CO2, bringing the total to 49,360 Mts.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.