As concerns for environmental impact rose, the market started to require a framework that allows projects to showcase their ecological implications accurately. Because of this, climate-focused data tracking project Hyphen has found a market gap that it’s very eager to fill.
With the support of a Chainlink grant back in 2021, the project is now launching a decentralized oracle network (DON) that allows smart contracts to have access to a verified resource, providing greenhouse gas data starting with nitrous oxide (N2O). This sparks the creation of a reporting ecosystem that holds corporations accountable for their emissions and allows climate disclosures for compliance with regulations.
Miles Austin, the CEO of Hyphen, told Cointelegraph that the project provides “timely data flows of climate emissions information from global sources to both the private sector and public sector.” With this, capital markets are able to use “real-world climate data” as they strategically plan for sustainability.
“Corporations need the ability to accurately track and report their scope 1, 2 and 3 emissions in order to establish baselines to work from in order to reach climate commitments.”
Hyphen chief technology officer Thierry Gilgen says the platform gives out “validated and trustworthy data streams” to emerging financial ecosystems built on blockchain or distributed ledger technology. With the Chainlink DON, data reported by companies will also go through a decentralized and independent verification process. It eliminates fraudulent and inaccurate reporting.
“We use Chainlink nodes to validate and make available data from scientific organizations for smart contract use, in order to build comprehensive climate tracking and regulatory services for governmental organizations, financial institutions and enterprises that are bound to the new green finance/climate regulations emerging worldwide.”
The initial launch features N2O data from the Integrated Carbon Observation System using the Montreal Protocol framework, a global treaty protecting the ozone layer.
While the debate on the environmental impact of crypto continues to live on, recent reports show that Bitcoin (BTC) mining uses only 0.08% of the world’s carbon dioxide emissions. The network emitted 42 megatons (Mts) of CO2 while the total emissions amounted to 49,360 Mts.