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Blockchain tokens map real-world assets Brody says that in terms of managing greenhouse gas ( GHG ) emissions , Ethereum has key features that can help – notably , tokenisation . Tokenisation in blockchain is the issuing of a blockchain token , which are digital representations of real-world assets .
“ Not only is tokenisation a useful way of quantifying and moving around assets or liabilities , the smart contracts that are used to define tokens can be established to control which entities can mint new tokens and how they can be moved around ,” says Brody .
As a result , he says , it ’ s possible to set up standardised models of emissions and allow only compliant organisations to mint tokens .
“ Every token for either emissions or offsets can be traced back to an original emitter ,” he says . “ This ensures definitions are standardised and that only firms with inspected and verified processes can issue either emissions or offset tokens .
Brody points out that other features of blockchain that can help with GHG issues are :
• Product and service tokenisation related to emissions and offsets .
• Integration of external emissions data for products into the blockchain , allowing them to be tracked around the world .
• Data permanence , so that carbon-output reporting by suppliers , when written to the blockchain , will be stored forever , even after the supplying company has come and gone .
In the book , Brody also looks at product traceability in the supply chain . Brody says product traceability is one of the first and best use cases with Ethereum because it is simple to implement .
48 November 2023