Flowcarbon raises $70m with lead investor VC Shop a16z
Since the ban, however, China has seen its hashrate rise from 0% on July 21 to 21.1% on January 22. The US hashrate stood at 37.84% on January 22, making it the highest major bitcoin mining nation.
US lawmakers have not been won over by its position as the world’s largest bitcoin mining country. President Joe Biden and the United States aim to achieve zero carbon emissions by 2050.
The continued use of fossil fuels to provide mining power has led to calls for a total ban on bitcoin and proof-of-work mining.
From a global perspective, the increased focus on crypto mining reflects a sense of urgency at the governmental and lower level for more action to save the planet. This increases the need for a transparent carbon credit market.
Flowcarbon sparks investor interest with new carbon credit platform
Flowcarbon is an open-source protocol, originally launched on Celo, aimed at chaining carbon credits.
By tokenizing carbon credits, Flowcarbon provides a platform for project developers and carbon buyers to interact directly, resulting in a liquid carbon market with efficient pricing.
Goals to help achieve the Flowcarbon mission include,
- Create a more transparent and accessible carbon market.
- Promote sustainable practices.
- Help organizations become net zero or negative.
Key climate goals include:
- Incentivize DAOs and other organizations to use on-chain carbon assets to become net zero or net negative.
- Lead by example to show DAOs how to become net negative carbon contributors by burning a portion of all royalty revenue as carbon tokens.
Investor interest has been impressive, with Flowcarbon raising $70 million in its first round of funding.
Among the early round investors was a16z. Announcing its investment in Flowcarbon on Tuesday, a16z said:
“The carbon-neutral market could potentially reach $50 billion by 2030, and on-chain carbon credits can help facilitate this reality. Integrating carbon credits into the chain adds major efficiencies to the market, allowing individuals and businesses to internalize the cost of emissions, reduce the negative externalities that are currently socialized, and ultimately reduce the cost of emissions. encourage more sustainable practices.
The ad continued to say.
“Unlike current voluntary carbon credit markets, which are fractured, opaque and closed, tokenized carbon credits allow anyone to buy credits and control when they are withdrawn as offsets, with built-in liquidity and discovery of price.”
As cryptocurrency mining receives government scorn, the launch of Flowcarbon highlights the benefits of blockchain technology and the need for governments to drive innovation.