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

Rising from the ashes of old crypto exchanges, a new paradigm is emerging.

The environment is now a global priority, as evidenced by the threat of carbon dioxide emissions rising to 414.72 parts per million, a new record 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 made public their mission to reduce their carbon emissions. For example, the United States has openly communicated its environmental product measurement plan through the Bureau of Economic Analysis.

However, for many sectors, achieving absolute zero carbon emissions is impossible; carbon offsetting becomes crucial to counter residual emissions. According to this model, organizations can offset residual emissions by investing in projects that absorb carbon. Carbon offsets then become a method of tracking how many credits an individual or organization needs to be carbon neutral.

Therefore, 1GCX President and Founder, Michael Wilson shares:

“Environmental commodities, an asset class that exist in the form of non-tangible energy credits, are now recognized as the most crucial value creators of the next 10 to 50 years.”

Consider that with the environment and carbon becoming a top priority for the world, the traditional way the world views energy, and more importantly, value, is also likely to change. As more countries adopt an energy credit approach, a US dollar-denominated value and debt that may never be repaid may no longer be viable.

Value, which is a construct of perception, can change for countries to recognize non-tangible energy credits – more specifically, carbon credits in their balance sheets. Recognizing energy over dollars makes sense considering the size of the US debt and how paying it down requires a budget surplus, which the country hasn't had since 2001.