Blockchain-based infrastructure creates the future of carbon markets, crypto and commodities

The environment is now a global priority, evidenced by the threat of rising carbon dioxide emissions reaching 414.72 parts per million, a new record high in 2021, as reported by the National Oceanic and Atmospheric Administration’s Climate in the United States. With the impact of these emissions on climate change in mind, many countries have announced their mission to reduce their carbon emissions. For example, the United States has openly communicated its plan for environmental commodity measurements through the Bureau of Economic Analysis.

However, for many sectors it is impossible to achieve absolute zero carbon emissions; CO2 compensation will be crucial to counteracting residual emissions. Under this model, organizations can compensate for remaining emissions by investing in projects that absorb carbon. Carbon compensation then becomes a method for tracking the number of credits a person or organization needs to be carbon neutral.

Accordingly, the president and founder of 1GCX, Michael Wilson, shares:

“Environmental commodities, a class of assets that exist as intangible energy credits, are now recognized as the most crucial value creators of the next 10-50 years.”

Consider that when the environment and carbon become a top priority for the world, the traditional way the world will look at energy and, more importantly, value, will also change. As more countries begin to operate on an energy-credit-first approach, a value denominated in US dollars and debt that may never be repaid may no longer be sustainable.

Value, which is a construct of perception, can change for countries to recognize non-tangible energy credits – more specifically, carbon credits to their balance sheet. Recognizing energy over the dollar makes sense when you consider how significant the US debt is and how paying it down requires a budget surplus, the likes of which the country has not seen since 2001.

Gather the carbon market

Currently, there is still no unified solution for the carbon market that allows participants to quickly and seamlessly capture the value of carbon goods. Today, several private companies offer carbon offsets to companies or individuals, each of which represents investments of contributions to forestry or other projects with a negative carbon footprint.

Alternatively, buyers can buy 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 scarce since verification methods vary, among other things.

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 a global transition to this new value system.

Michael Wilson goes on to share:

“Freedom begins and ends with the decision to be responsible for yourself and your world, especially the environment around you. Trade, economics and currency are the very core of our civilization. If freedom is to be ideal, then the only way forward is one of freedom and responsibility. Cryptocurrency brings money, value, systems and philosophy to the forefront of people’s minds. We are at a precipice, a new era is upon us, and the choice is a choice of consciousness, which is the way we want to go.”

A goods first approach

1GCX addresses these concerns directly. The exchange represents a green technology that can bring the benefits of emerging markets to cryptocurrency market capitalization by highlighting the most promising projects. The resulting two-way carbon offset trading bridge becomes part of a broad, holistic market that can facilitate adoption, education and connectivity across the crypto industry.

Unlike others in the space, 1GCX incorporated a market-making, commodity-first approach to redesigning its financial markets. Also, the incorporation of linking and cross-use of crypto, 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 markets in carbon and energy. Therefore, 1GCX will become an ecosystem that starts with a marketplace for ordinary people to access one of the most well-kept secrets in 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 interconnections.

Since May 11, 2022, 1GCX has continued to offer trading pairs of Bitcoin (BTC), Dogecoin (DOGE), Ether (ETH), USD Coin (USDC) and Tether (USDT), and some less common trading pairs against not only the US dollar but also Canadian dollars, Euros and British pounds, in addition to other familiar digital assets and physical commodities. Built on the best fundamentals of TradFi, the platform’s exchange has decided to add new cryptocurrency assets every week. It also shares roadmaps to create the first digitized carbon assets from a number of offset verifiers around the world. These assets are said to be available for trading as early as Q4 2022.

Unlike today’s private exchanges, 1GCX will offer smooth and fast settlements, complete 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:

“Our economic principles of open and transparent markets begin with increasing the flow of capital and addressing unavoidable emissions through the use of free market solutions such as carbon offsets in a way that benefits everyone.”