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“A data-driven backend infrastructure can be crucial to propelling cross-sector cooperation to address climate crisis,” said William Herkelrath, managing director at Chainlink Labs. “By using Chainlink to connect some of the best-quality climate data around the world onto Blockchains for Energy and Climate Initiatives, we can give clean energy the tools it requires to expand its reach.”
Hybrid “on/off chain” hybrid solutions
The use of smart contracts has been a catalyst for early adopters in the new blockchain industry. Smart contracts use oracle middleware to gain secure external data. This allows developers to create advanced blockchain applications. Developers of smart contracts have the tools to create the next generation clean energy solutions thanks to the availability of high-quality climate data and energy data on-chain.
The energy industry faces new challenges. It must balance an ever-diverse energy grid and increase intermittent renewable energy generation, while also proving investment returns on clean energy projects.
“During this period for major infrastructure and market transform, utilities, service providers and governments can use Blockchain technology to digitize, assign value to clean-energy investments and create fully automated incentive programs for participating in sustainable practices.” Jose Luis ElejaldeTecnalia’s energy, climate, and urban transition manager.
The report Blockchains and Oracles: Managing Climate Change in Energy IndustryThe following eight hybrid smart contract use cases support the transition to clean energy:
- Issue Carbon credits or consumer incentives When predefined energy objectives have been met.
- Tokenizing energy commodities, and energy project cash flowsThis can be used as collateral in various Decentralized Finance (DeFi) applications.
- Use parametric energy conversion agreementsTo ensure performance or uptime requirements of renewable power installations with automatic settlements.
Parametric insurance platforms are growing in popularity. They use oracle-powered weather data and blockchain-based settlement to automate insurance payouts and assessments for both agribusinesses as well as energy producers. Arbol is one example of an Ethereum-based climate risk solutions platform that uses smart contracts to help energy businesses hedge power demand and revenue fluctuations around unexpected temperature variations.
Another example of a climate solution using Blockchain technology that is explored in the report’s report is Hyphen, which aims to improve the accuracy of corporate emissions reporting through the use of data from leading atmospheric agencies like the Integrated Carbon Observation System (ICOS).
“Companies must be able to accurately track their emissions and report them to climate change to establish baselines and meet their commitments.” Miles AustinHyphen Global AG CEO. “With verified climate data now available on Blockchains thanks to our collaboration with Chainlink, it is possible to begin building more sophisticated and equitable financial products and services that aid in the mitigation of climate risk. We are now able to supply real-world, validated measurements to dynamic carbon assets. This provides confidence for investors, capital markets, regulators, and other …”.
The March issue of the Lemonade Crypto Climate CoalitionThe mission of the company was to provide parametric crop insurance to smallholder farmers. It triggers automatic payouts whenever there is any temperature or rainfall data from sources like AccuWeatherMeets a threshold.
High-quality data and greater transparency are essential for meeting clean energy standards and helping to mitigate the effects of climate changes. Temperatures continue to rise and the climate becomes more volatile. The availability of next-level technologies, such as blockchain or Oracle solutions, will allow for the automation and management that is beyond what they currently have.
One thing is certain, no matter what industry you are in, the climate crisis or transition to renewable energies is a shared problem and requires our collective attention.
About Chainlink Labs
Chainlink Labs is a leading provider of open-source, secure, and reliable blockchain oracle solutions. We enhance smart contracts by connecting them with a wide range off-chain data sources and computations such as asset prices and web APIs. We are committed to the development and integration Chainlink as the standard decentralized Oracle framework for smart contracts across any blockchain.
About Tecnalia
TecnaliaThe largest center for applied research and technological advancement in Spain, a benchmark in EuropeAs a member of Basque Research and Technology Alliance. We work with institutions and companies to increase their competitiveness, improve people’s lives and achieve sustainable growth. It is possible because we have people who are passionate and committed to technology and to building a better world.
SOURCE Chainlink Labs
