The environment is now a global priority, as evidenced by the threat of rising carbon dioxide emissions reaching 414.72 ppm, a new record in 2021, according to the National Oceanic and Atmospheric Administration in the United States. Considering the impact of these emissions on climate change, many countries have made public their mission to reduce their carbon emissions. For example, the United States has openly announced its plan to measure environmental commodities through the Bureau of Economic Analysis.
However, achieving absolute zero carbon emissions is impossible for many industries; carbon offset becomes essential to combat residual emissions. Under this model, organizations can offset residual emissions by investing in projects that absorb carbon. Carbon offsets then become a method for tracking the number of credits an individual or organization needs to be carbon neutral.
As a result, 1GCX President and Founder Michael Wilson shares:
“Environmental commodities, an asset class that exists as intangible energy credits, are now recognized as the most important value creators in the next 10-50 years.”
Consider that as the environment and carbon become the world’s top priority, the traditional way the world views energy, and more importantly, value, is likely to change. As more countries begin to operate on an energy credit first basis, the US dollar denominated value and debt that may never be repaid may no longer be sustainable.
Value, which is a perceptual construct, can change for countries to recognize intangible energy credits—more specifically, carbon credits—on their balance sheets. Recognizing energy over dollars makes sense when you consider how significant the U.S. debt is and how paying it off requires a budget surplus not seen in the country since 2001.
Carbon market unification
Currently, there is still no unified carbon market solution that allows participants to quickly and seamlessly capture the value of carbon commodities. Today, several private companies offer carbon offsets to businesses or individuals, each representing an investment of contributions in forestry or other projects with a negative carbon footprint.
Alternatively, buyers can purchase credits on a carbon exchange, but unfortunately traditional finance (TradFi) has a bad reputation for being archaic and part of an oppressive system. High-quality carbon credits are rare because, among other things, verification methods vary.
For this reason, 1GCX believes that taking the best parts of TradFi and merging them with blockchain will prove to be the only solution that can support the global transition to this new value system.
Michael Wilson further shares:
“Freedom begins and ends with the decision to be responsible for yourself and your world, specifically the environment around you. Trade, economy and currency are the core of our civilization. If freedom is to be ideal, then the only way forward is freedom and responsibility. Cryptocurrency brings money, value, systems and philosophy to the forefront of people’s minds. We are at a precipice, a new age is dawning and the choice lies in consciousness, which is the way we will go.”
Goods first access
1GCX addresses these concerns directly. The exchange represents a green technology that can bring the benefits of new markets to cryptocurrency market valuations by highlighting its most promising projects. The resulting two-way bridge for carbon offset trading becomes part of a broad, holistic market that can facilitate adoption, education and connectivity across the crypto industry.
Unlike others in the space, 1GCX has incorporated a commodity-first market approach into its financial markets redesign. In addition, the inclusion of pairing and cross-application of cryptocurrencies, commodities and carbon credits sets this platform apart from other exchanges. For users, this means a new user experience for trading on the platform with access to live carbon and energy markets. Therefore, 1GCX will become an ecosystem starting with a marketplace for ordinary people to access one of the best kept secrets of global finance – Carbon Commodities, also known as Natural Asset Capital.
Looking at the rest of the ecosystem, users will come face to face with transformative offerings centered around tokenized bonds, called black bonds, and new payment systems that integrate crypto with crypto-commodity pairings.
As of May 11, 2022, 1GCX continues to offer Bitcoin trading pairs (BTC), dogecoin (DOGE), ether (ETH), USD coins (USDC) and Tether (USDT), and some less common trading pairs against not only the US dollar, but also the Canadian dollar, the euro and the British pound, in addition to other well-known digital assets and physical commodities. Built on the best foundations from TradFi, the platform’s exchange has decided to add new cryptocurrency assets every week. It also shares plans to create the first digitized carbon assets from various offset verifiers around the world. These assets will reportedly be available for trading as early as Q4 2022.
Unlike today’s private exchanges, 1GCX will offer smooth and fast settlement with low fees. For new users, this means having access to one of the most accessible platforms to use, even if they have never used a traditional exchange before.
RA Wilson, Chief Technical Officer of 1GCX, reiterates the company’s mission statement:
“Our economic principles of open and transparent markets start by increasing the flow of capital and accounting for unavoidable emissions through free market solutions such as carbon offsets in a win-win way.
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