Major blockchain Algorand (CRYPTO: ALGO) plans to devote a portion of the ecosystem's transaction fees to purchase carbon credits at the decentralized carbon offset marketplace ClimateTrade.
What Happened: In a Thursday announcement, Algorand wrote it will implement a smart contract system that will automatically buy carbon credits on ClimateTrade with a portion of the fees of each transaction processed on the blockchain.
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Algorand Foundation CEO Staci Warden told Cointelegraph that she believes that this will allow the blockchain to scale while staying carbon negative and that the smart contract will ensure the rule will be kept long term. She said that Algorand hopes "this encourages our partners and other blockchain protocols to lower their carbon footprint."
Warden also said she believes that "the industry is moving in the right direction by adopting proof-of-stake as the preferred consensus mechanism." She added that "while there are certainly valid criticisms against Bitcoin and proof of work, the future is bright.”
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