Consensus

Net-Zero Consensus Algorithm

A mechanism designed to transparently manage carbon reduction and offset processes. It verifies and records carbon credits, reduction activities, and offset actions within a blockchain environment.

1. Carbon Data Collection Each participant collects data on carbon emissions from various sources such as energy consumption and industrial activities, carbon reductions achieved through renewable energy use or energy efficiency improvements, and carbon absorption through natural or artificial carbon sequestration activities.

2. Carbon Data Verification Carbon emission, reduction, and absorption data undergo an automated notarization process through a notarization engine before being recorded on the blockchain. This process ensures accuracy, removes incorrect or invalid data, and only records verified data in the system. This enables transparent access for all participants and serves as the foundation for forming consensus.

3. Consensus Formation Verified carbon data is tokenized and issued as data tokens, forming reduction and offset consensus through a consensus algorithm.

Carbon Credit Burn Consensus

The burn consensus refers to the process of using carbon credit tokens to burn carbon emission tokens. This process is only possible using carbon credit tokens issued based on verified carbon absorption data.

1. Carbon Emission Tokens Carbon emission tokens are issued as verified tokens based on notarized data through a notarization engine.

2. Purchasing Carbon Credit Tokens To offset carbon emission tokens, participants purchase carbon credit tokens.

3. Carbon Burning

   • Carbon emission tokens can only be burned using carbon credit tokens.

   • Participants requesting the burn act as carbon emission proof proposers and initiate the verification process. During the verification, all transactions from the creation of the carbon emission tokens to the present, as well as all transactions from the issuance of carbon credit tokens to the present, are reviewed.

   • Once verification is complete, the carbon emission tokens and their corresponding carbon credit tokens are burned.

   • Burned carbon credit tokens are recognized as achieving carbon neutrality, and this status is rolled up from the L2 chain to the L1 chain for recording.

Burning Not Possible with Carbon Emission Tokens Alone

Carbon Credit Tokens Required to Burn Carbon Emission Tokens

Carbon Reduction Consensus

The carbon reduction consensus is a process for designing and implementing strategies to reduce carbon emissions. This consensus enables reducers to determine practical methods for decreasing emissions and ensures their effective implementation.

1. Identifying Emission Sources Emission sources that provide carbon emission data are identified, and the emissions from various sources, such as energy consumption, industrial processes, and transportation, are measured.

2. Setting Reduction Pools Based on the analysis, pools are established to efficiently reduce carbon emissions. If the amount of emission tokens exceeds the target during the designated period, the pool is considered to have failed in its reduction efforts.

3. Tracking and Verification When reduction targets are met, all transactions from the creation of the reduced emission tokens to the present are tracked and verified. Subsequently, these tokens are issued as carbon credit tokens. Reducers are rewarded for these activities by becoming the owners of the issued carbon credit tokens.

When the Carbon Reduction Pool Agreement is Fulfilled, the Reduced Emissions are Converted into Carbon Credits

Converted Carbon Credit Tokens Cannot Be Used for Burning