Canadian tech company DeepMarkit Corp. (TSXV: MKT), which is focused on transitioning the global carbon offset market into the digital economy, has entered into strategic collaboration with Polygon, Inc. (MATIC), a decentralised Ethereum scaling platform.
DeepMarkit has confirmed it is in the process of launching its new service, minting of carbon credits into non-fungible tokens on the blockchain using its MintCarbon.io platform. This means that particularly for smaller scale renewable energy projects or projects generating carbon offsets, rather than go through the relatively illiquid voluntary carbon offset market, they will be able to mint their own NFTs to later either hold, retire or trade on the open market such as the NFT marketplace OpenSea.
DeepMarkit says it plans to leverage the power of Polygon’s carbon-neutral network to enable the minting of carbon credits into NFTs.
“Establishing a strategic relationship with Polygon was an easy decision for DeepMarkit and it is enabling our MintCarbon.io platform to handle higher transaction volumes at a lower cost. In recent years, scalability issues plagued many cryptocurrency and blockchain projects, but Polygon has developed a solution via its product suite for efficiently scaling Ethereum applications. With the launch of MintCarbion.io drawing near, this collaboration is ultimately expected to benefit current offset holders who are waiting to come onto our platform and projects generating new carbon offset credits worldwide on an ongoing basis,” said Ranjeet Sundher, interim CEO of DeepMarkit.
Why is the Polygon deal important for DeepMarkit?
Earlier in May DeepMarkit tested the MintCarbon.io platform’s capability to mint NFTs by assuming three different scenarios in which the users could either claim, hold or retire NFTs. The carbon credits came from two wind projects and one landfill project, all three authenticated by official carbon standard registries. The tests were designed to confirm the core functionality of the MintCarbon.io platform which is now less than two weeks away from a commercial launch.
DeepMarkit said it expects to benefit from Polygon’s technical and business support for the entire MintCarbon.io platform. Polygon is the infrastructure development solution of choice for token minting platforms such as MintCarbon.io because it is secure, fast, and energy efficient. Polygon’s blockchain enables single or small batch transfers or retirements of carbon credit NFTs to be economically viable. This is different to the Ethereum blockchain, where high transaction fees mean that only large batch transfers or retirements can be completed at a reasonable cost.
Polygon can process up to 65,000 transactions per second with fees costing less than a fraction of a cent in addition to network fees. By processing batches of transactions on its proprietary blockchain, Polygon enables cost-effective and fast transaction turnaround times.
Jaslyn Wang, head of APAC Growth at Polygon had this to say: “Minting carbon offset NFTs to build out a more accessible carbon offset market also aligns with Polygon’s broader ambition to furnish environmental-focused projects with the tools they need to thrive.”
Polygon Studios, an organization onboarding brands, developers, and creators to Web3 through investment, marketing, and community support, will provide cross-promotional assistance for MintCarbon.io by identifying opportunities for other collaborations with new potential clients. Polygon recently became carbon-neutral and has committed to becoming carbon negative in 2022.