nChain signs agreement with NAGEX to develop blockchain-based carbon exchange platform
ZUG, Switzerland, Dec. 05, 2022 (GLOBE NEWSWIRE) — nChain today announces the signing of an agreement with NAGEX to assess the viability of a global CO2 index based in North America that includes physical storage of CO2 and digital blockchain ledger -technology.
Finding a global carbon price
Despite being one of the largest commodities in the world, carbon dioxide is rarely included in the primary indices designed to represent global production, consumption and trade. Governments impose more taxes and fees on carbon emissions, but these are not based on a realistic, global free market price – and without that, the financial markets struggle to allocate funds to sustainability projects. NAGEX hopes to accelerate CO2 trading volumes and encourage CleanTech investments with a revolutionary platform to first capture the provenance data of CO2 before digitizing the carbon market and develop a CO2 pricing mechanism and trading platform.
“nChain is excited to work with NAGEX on this ground-breaking project that aligns well with our ESG strategy. Over The Counter CO2 commodity trading needs reforms, especially when it comes to liquidity, transparency and pricing. Blockchain technology can help to ensure that, and we are proud to have built one of the most scalable and energy efficient ledger designs globally,” commented nChain Chief Commercial Officer Leandro Nunes.
Tokenization of data with blockchain
Blockchain technology ensures that data is stored securely in a public and immutable way, and the NAGEX platform uses this to create digital Carbon Warrants Passports (CWPs) by issuing a unique “token” for each carbon credit, permit and offset that cannot be changed or replicated and although they can be traded an infinite number of times, they are only “used” once. The unique advantage of NAGEX’s platform is scalability: where competitors collect thousands of permits in batches, nChain’s technology allows trading of individual permits – microtransactions – for low fees. The exchange is also transparent in design and more easily regulated.
NAGEX CEO Brian de Clare stated: “To enable the CO2 carbon credit market to function in a way that attracts significant capital to the CleanTech sector globally, industry, governments, financiers, regulators and other participants need a globally standardized and verifiably reliable price for CO2 that has been neutralized from its harmful effect on the environment. NAGEX is excited to leverage nChain’s blockchain expertise to help us create the CWPs that will serve as the backbone of NAGEX’s value proposition. With the immutable nature of blockchain along with a network of storage sites in North America, NAGEX will be able to offer customers certified carbon credits that capture data from the first emission, through each trade, regardless of size, down to the end of the supply chain, where price discovery can rely less on government influence and more on supply and demand for those credits, permits and offsets.”
Engage relevant experts
NAGEX has engaged the services and expertise of nChain and is in the process of engaging one of the leading consulting companies globally for a consulting phase before moving on to developing the blockchain-based platform. NAGEX is in the process of building and securing rights to a number of storage facilities in North America where CO2 can be permanently sequestered. The aim is to start the process of moving CO2 emission prices away from authorities to a more free market model influenced by supply and demand. Once it has been rolled out to the North American market, the plan is to expand the model globally.
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About nChain
nChain is a leading global blockchain technology company and was named one of the 100 most innovative companies in the world in 2022. We provide software solutions, consulting services and IP licensing for clients in various industries who want to take advantage of the security and scalability of blockchain. Our mission is to secure the internet of value. Founded in 2015, nChain employs more than 240 employees, holds over 534 patents and is the developer of the Bitcoin SV Node software, Teranode, LiteClient and more.
Learn more at: nchain.com
About NAGEX
NAGEX is a fintech commodity exchange that builds a standardized, accountable and reliable platform that institutions, governments, consumers and producers can rely on for global pricing. NAGEX brings a team of experienced commodity, trading, finance and clearing experts to the growing carbon emissions markets, which blockchain will significantly enhance in the coming years. Behind the formation of NAGEX lies almost 20 years of experience in the environmental industry together with over three years of research and analysis of the CleanTech and blockchain businesses. Founded in 2022, NAGEX’s leadership has over 200 years of combined knowledge in the financial markets and works with key partners with whom they intend to build this exchange.
Learn more at: www.nagex.ca
Contact information:
Carlos Leira
Director, Marketing and Communications
[email protected]
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