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Looming Shortfall in Tradeable Carbon Offsets Addressed Via New Decentralized Finance Mechanism

Open sourced, Hedera-based price discovery mechanism, created in partnership with Object Computing, Inc. and BlockScience, will accelerate sustainability efforts by improving the liquidity and credibility of carbon offsets

DALLAS, TX / ACCESSWIRE / May 23, 2022 / Object Computing, Inc. (OCI), a modern consulting company, and BlockScience, an engineering, R&D, and analytics firm specializing in complex systems, have today announced to develop a new open source price discovery mechanism and exchange protocol for carbon offsets, designed to enhance liquidity in the climate markets and maintain full auditability of all attributes, roles, and actors throughout their lifecycle.

A looming shortfall in credible and tradable carbon offsets threatens to derail carbon trading, and carbon offset prices are predicted to increase fifty-fold by 2050 due to a growing undersupply of offsets that remove, store or sequester carbon to achieve net-zero targets. This new mechanism, dubbed Automated Regression Market Makers (ARMMs) will offer the ability to develop highly-liquid, publicly-auditable, automated ESG marketplaces based on open data and price discovery.

This builds upon the fast scaling efforts by the Hedera ecosystem for the Guardian1, an open source policy workflow engine that tokenizes climate assets, such as offsets and emissions, leveraging token standards defined by the Interwork Alliance Sustainability Business Working Group and W3C DID Methods. This ARMM open source exchange architecture will leverage Hedera’s recently released Smart Contracts 2.0 with improved scalability to enable the facilitation of these trades which will be powered by machine learning algorithms that enable better price discovery.

While many sustainability-oriented stakeholders remain skeptical about carbon offsets due to concerns about inadequate data, auditability, and transparency, ARMMs will improve liquidity for carbon offsets and removals that are unique to the metric tonne. Today carbon offsets are commoditized and, in nearly all scenarios, are traded without this level of veracity available.

Bob Elfanbaum, CEO at Object Computing, Inc., says: “We share Hedera’s commitment to making a meaningful impact on our environment. Through this partnership, we look forward to creating more trust and transparency in the trading of carbon offsets and credits. We are excited to innovate with BlockScience in order to activate the emerging breadth and value of tokenized ESG assets at scale.”

Justin Atwell, Developer Advocate at Swirlds Labs, comments: “In today’s fast-paced market, widespread adoption is best achieved through open systems. It is great to see the work of Object Computing around open automated regression markets and associated sandboxes to help organizations accelerate their decarbonization initiatives.”

Wes Geisenberger, Vice President of Sustainability and ESG at the HBAR Foundation, adds: “Object Computing is a leader in building open-source software and has a proven track record in DLT and machine learning. Their strong understanding of unique properties on Hedera, including fairness, improves the quality of markets for these real-world assets. We’re excited about building next-generation liquidity for fully auditable carbon markets that maintain traceability down to the metric tonne.”

Dr. Michael Zargham, Founder and CEO of BlockScience says: “The market that we are building with Object Computing will create practical liquidity for carbon offsets and removals. These semi-fungible assets have auditable attributes which characterize their market value. The ARMM will work within the market to estimate prices corresponding to attribute profiles. By directly integrating with the market and making its own trades, this market maker can improve efficiency and aid in price discovery of these assets.

By building the ARMM and leveraging the high throughput capabilities of Hedera, we can maintain qualities of specific assets such as durability, leakage, and additionality down to the signature of the assets’ origin while trading in a liquid manner. We’re excited to join Object Computing and the HBAR Foundation on this innovative endeavor.”

The grant comes from the latest investment in open source infrastructure by the HBAR Foundation via its Sustainable Impact Fund.

Notes for editors

1 The Guardian is a central piece of the Hedera ecosystem and the HBAR Foundation’s Sustainability Initiative. It is a fully auditable solution that can provide verification of an energy asset’s attributes. The Guardian provides quality attestations to off-chain data that include decentralized identity, policy driven actions, and fair transaction ordering. These properties provide the means to eliminate recognized data quality issues, such as asset double counting, that obscure both supply and demand, and will be central to the research and development of using ARMMs to automate Renewable Energy Credit (REC) and Carbon offset/removal Credit (CORC) markets.

For more information, please contact:

Leo Park for HBAR Foundation
Cryptoland PR | http://cryptolandpr.com/

About the HBAR Foundation

Founded in 2021, The HBAR Foundation fuels the development of the Hedera ecosystem and promotes the HBAR economy by providing grants and other resources to developers, startups, and organizations that seek to launch decentralized applications in Defi, NFTs, CBDCs, Sustainability, gaming, and other sectors. In addition to providing funding through a streamlined grant process, the HBAR Foundation acts as an integrated force multiplier through expert support across technical, marketing, business development, and other operational functions that are required to scale. For additional information, please visit https://hbarfoundation.org/ or follow the Foundation on twitter @HBAR_foundation.

About BlockScience

BlockScience ® is an engineering, R&D, and analytics firm specializing in complex systems. Our focus is to design and build data-driven decision systems for new and legacy businesses leveraging engineering methodologies and academic-grade rigor.

With deep expertise in Blockchain, Token Engineering, AI/Data Science, and Operations Research, we are able to provide quantitative consulting to technology enabled businesses. Our work includes pre-launch design and evaluation of economic business and ecosystem models based on simulation and analysis. We also provide post-launch monitoring and maintenance via reporting, analytics, and decision support tools. For additional information, please visit https://www.block.science/

About Object Computing, Inc.

Object Computing, Inc. is a modern consulting company that takes businesses from insights to outcomes using breakthrough technology. Our technology team has unmatched expertise in designing and building solutions using today’s leading-edge technologies, including Machine Learning, Blockchain, the Internet of Things, and Cloud. As one of the original pioneers of enterprise open source solutions, we strategically integrate best-in-class open source technologies into enterprise solutions to deliver impactful digital capabilities that enable exceptional extensibility, reusability, security, and quality. For additional information, please visit https://objectcomputing.com/

SOURCE: The HBAR Foundation

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https://www.accesswire.com/702276/Looming-Shortfall-in-Tradeable-Carbon-Offsets-Addressed-Via-New-Decentralized-Finance-Mechanism

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