CURRENT AFFAIRS

Detailed explanation-1: -Singapore-based AirCarbon Pte launched the worlds’ first blockchain-based carbon trading exchange. This will allow airlines and other corporate buyers to buy as well sell tokens backed by carbon offset credits approved by the International Civil Aviation Organisation.

Detailed explanation-2: -In corporate carbon trading, blockchain technology can record and transfer information flow reliably, realize point-to-point transactions between suppliers and demanders to achieve “decentralization”, help to reduce the entry threshold for the carbon trading market.

Detailed explanation-3: -Blockchain can reduce transaction costs, minimize tedious paperwork, and streamline the carbon trading process. While not a panacea, blockchain can ultimately enable the exchange of data in an entirely new way.

Detailed explanation-4: -These tokenization-use cases provide a potential buffer against today’s soaring inflation while enabling a larger class of investors to access widely-considered safe-haven assets. Blockchain technology can do exactly this for the regulated carbon credit market.

Detailed explanation-5: -The Exchange is a central marketplace for carbon credits. The Exchange has a traditional trading architecture and uses distributed ledger technology to securitize carbon credits into digital receipts representing a clear line of ownership between the carbon credits held in the Trust.