Using DAO and blockchain to manage carbon credits is the way forward

The current system for issuing and verifying carbon credits is inefficient, costly, outdated and opaque. To solve these problems, it is imperative to replace this system with a more efficient technology such as blockchain and other related technologies, managed by a decentralized autonomous organization (DAO). In this article, we examine why DAO and blockchain are necessary for transparent, efficient and sustainable management of carbon credits, forests and their biodiversity.

Why replace the current system?
The current system for issuing and verifying carbon credits relies on manual auditing and verification processes, which makes the system inefficient, slow, and expensive. In addition, the system is one-sided and easily controlled by private companies and institutions, which are often influenced by lobbies. To solve these problems, we need a more efficient and transparent technology.

The benefits of blockchain
Blockchain is a distributed ledger technology that records transactions transparently, securely and cheaply. It can be used to store carbon credits and related information in a decentralized way, without the need to trust a third party. Transactions can be verified in real time, eliminating the need for a manual audit process. In addition, the blockchain eliminates the risk of “double spending,” which is a common problem with carbon credits.

The benefits of DAO
A decentralized autonomous organization (DAO) is an organization that is managed by a set of rules programmed on the blockchain, rather than by a central authority. DAO members vote on decisions to be made, allowing for transparent, decentralized and dynamic governance. DAO allows for broader and more diverse participation, while eliminating the possibility of conflicts of interest. Most importantly, a DAO would help improve participation and transparency on forest, biodiversity and climate management.

How will blockchain and DAO replace the current system?
The three main functions of global carbon credit registries are protocol establishment, data verification and database management. All of these functions can be managed by blockchain and DAO in an effective, efficient and transparent manner.

Database management is one of the main reasons for the creation of blockchain. It allows for decentralized and secure management of information and transactions, eliminating human error and the risks associated with power outages and hacker attacks.

Data verification can be done in real time through the blockchain, making the manual auditing process unnecessary. Data, such as satellite imagery, can be stored on the blockchain, ensuring its authenticity and facilitating the verification of carbon credits related to greenhouse gas emission reduction projects. Digital VCR integrated with remote sensing and artificial intelligence will improve the monitoring and evaluation of forest and biodiversity conservation projects.

The establishment of verification, validation, and certification protocols for forests and carbon credits can be managed by DAO, which enables transparent, efficient, and democratic governance. The DAO will enable the participation of different stakeholders, such as landowners, environmental experts, conservation organizations and companies. DAO members can propose protocols and put them to a vote. Once the protocols are adopted, their smart contracts will be programmed and integrated into the blockchain to enable verification and validation of data in a transparent and immutable manner. Specifically, smart contracts will be used to automatically verify and validate certain criteria, such as the amount of carbon stored in a forest or the number of trees planted. Once the criteria are met, the contract can issue a certificate or credit that can be traded on a blockchain-based exchange. This allows for a transparent and secure process that will certainly reduce the risk of fraud and corruption. In addition, the use of a DAO ensures that the management and operation of the system is decentralized and democratic, which will increase trust in the system by all stakeholders.

The global DAO should also enable more efficient and transparent management of carbon credits by allowing stakeholder participation at all levels of the process. For example, landowners can submit data on their forest or land, environmental and satellite imagery experts can validate it, and the DAO should certify the carbon credits to be issued on the blockchain. Companies, governments, individuals can offset their greenhouse gas emissions by purchasing carbon credits on the blockchain, knowing that the data has been verified and certified by a transparent and decentralized process.

Moreover, the management of forest and carbon credit verification, validation and certification protocols by DAO can help eliminate the inefficiencies and opacities of the current system, allowing for transparent and decentralized governance while ensuring the authenticity and traceability of the data.

Managing carbon credits via DAO and blockchain: a path to transparency and efficiency
By using blockchain technology to store data and verify its authenticity, and by implementing DAOs for transparent governance of verification, validation and certification protocols for forests and carbon credits, we can create a more reliable, efficient and transparent system for managing carbon credits, forests and their biodiversity. This will be an effective, efficient and participatory contribution to the fight against climate change while encouraging companies and individuals to reduce their greenhouse gas emissions, and providing sustainable development opportunities for local communities. The use of DAO and blockchain and other related technologies should therefore be seen as the way forward for carbon credit management in the future.

This is the right time and we have all the rights and opportunity to impose governance with DAO, BLOCKCHAIN technology and other innovative digital technologies to contribute effectively and globally to the preservation of nature (fauna & flora) and the fight against global warming of our only planetary home, the Earth.
LET’S DO THIS ESPECIALLY FOR OUR PROGENY!