COCO (Chain-of-Carbon-Optimization)

The Cryptic Advantage of Peppered Moths

Comment 1

Inspiration

Introduction: ESG and the Economic Impact of Climate Change Climate change is one of the biggest challenges facing the world today, and the need for effective solutions has never been more urgent. The Carbon Offset and Reduction Scheme for International Aviation (CORSIA) was established to address aviation emissions, but it has faced challenges in creating an efficient and transparent carbon credit market. The COCO platform, built on the Hedera Hashgraph blockchain, aims to solve these challenges by creating a more efficient and transparent carbon credit market. This white paper provides an overview of COCO and its key features. COCO (Chain of Carbon Optimization) is a blockchain-based platform that revolutionizes the carbon credit market by providing an innovative, transparent, and efficient platform for businesses and individuals to offset their carbon footprint. Our platform leverages the power of the Hedera Hashgraph blockchain to create a more sustainable future by empowering users to take control of their carbon emissions. The COCO platform is a decentralized marketplace for buying and selling carbon credits. It leverages the transparency and efficiency of blockchain technology to create a more efficient and transparent market. COCO allows users to create and trade carbon credits as non-fungible tokens (NFTs) on the Hedera Hashgraph blockchain. This enables buyers to track Add Headings (Format > Paragraph styles) and they will appear in your table of contents. the ownership history and verification of carbon credits, increasing transparency and trust in the market. COCO can enable stakeholders to track, trace, match and manage their clean energy footprint while simplifying data-driven attestation of sustainability goals and mandates. The current problem is that carbon emission information is siloed, non-verified and non-standardized. The goal is to reduce environmental impacts and carbon footprint and increase progress towards global and corporate carbon emission goals. Fortune Global firms spend around $20 billion a year on CSR activities, more than 90% of the 250 largest companies in the world now producing an annual CSR report with North America has the highest regional sustainability reporting rate. Third-party assurance of sustainability information in corporate reporting is now a majority business practice worldwide with GRI remains the dominant global standard for sustainability reporting.

The Cryptic Advantage of Peppered Moths – Turning Investment Risk into Opportunity "Carbon credits that evolve with nature, just like the peppered moth."

If no action is taken to combat climate change, the considerable physical damages would imply a lower path of economic growth. In terms of which investment asset class markets will be more at risk. Looking at the market potential of different industries, tech and health care are likely to benefit the most from the green transition, whereas energy and utilities may lag. At the broad asset class level, the appeal of developed market equities brightens at the expense of high yield credit and emerging debt due to the higher concentration of carbon intensive sectors that comprise the benchmark indices for the latter. A green transition to a low-carbon economy, consistent with the Paris Agreement goals, will deliver an improved outlook for growth and risk assets relative to doing nothing. Such an outlook rejects the commonly held notion that tackling climate change has to come at a net cost to society. We believe in empowering individuals and communities to create a Distributed Carbon Market Exchange that is low-cost, environmentally friendly, and owned by the people of the world. The financial future will be green money that will create a better world for future generations.

What it does

Climate change is one of the most significant challenges facing our planet today. It is causing changes in our environment, which, in turn, is affecting the behavior and evolution of many species. The classic example of the peppered moth illustrates how environmental changes can have an impact on the genetic makeup of a population. As pollution from the Industrial Revolution darkened the bark of trees, the light-colored peppered moth was no longer camouflaged and became more vulnerable to predators. Consequently, the dark-colored variety became more prevalent in urban areas, demonstrating the power of natural selection. This example highlights the importance of understanding the relationship between our environment and the living organisms that inhabit it. As we face the challenge of reducing our carbon footprint to mitigate the effects of climate change, we must also consider the impact of our actions on the ecosystems around us. Chain of carbon optimization (COCO) is an approach that recognizes the interdependence of human activities and the environment. By analyzing the carbon footprint of various products and services throughout their lifecycle, COCO aims to optimize the use of resources and minimize environmental impact. The lessons we learn from studying the natural world can help us develop more sustainable practices and ensure a healthier planet for future generations. The primary users of the Chain of Carbon Optimization’s marketplace are those who benefit from quality data. The application is designed for industrial-scale use in order to create a global supply chain of data for AI consumption. The main actors are data providers, data consumers, data marketplaces, service providers and network keepers. Increasing demand for cryptocurrencies and accelerating adoption of blockchain-based solutions have highlighted an important issue: the technology's growing energy consumption and its impact on our climate. Carbon credits are a type of tradeable certificate that represents a reduction or removal of greenhouse gas emissions from the atmosphere. The concept of carbon credits emerged as a result of the Kyoto Protocol, an international treaty that aimed to reduce global greenhouse gas emissions. The protocol established a framework for countries to set binding emissions reduction targets and created a market for carbon credits that could be used to offset emissions. Carbon credits are typically generated by projects that reduce greenhouse gas emissions. For example, a wind farm project that replaces a coal-fired power plant would generate carbon credits based on the amount of emissions that the wind farm prevents. These carbon credits can then be sold to other organizations that need to offset their own emissions. In this way, carbon credits provide a financial incentive for companies to invest in projects that reduce greenhouse gas emissions. the limitations of the current carbon credit market have hindered its growth and limited its effectiveness in addressing climate change. By leveraging blockchain technology, COCO aims to create a more transparent, efficient, and accessible platform for buying and selling carbon credits, thereby contributing to a more sustainable future.

COCO's carbon credits have several potential business values and marketability factors that could contribute to the profit capability of the project. Firstly, there is a growing global demand for carbon credits as individuals, companies, and governments seek to offset their carbon footprint and reduce their environmental impact. The carbon removal economy is expected to grow significantly in the coming years as more entities seek to become carbon neutral or carbon negative, and COCO's carbon credits can provide a way for them to achieve that. Secondly, COCO's use of blockchain technology and DAO governance can add transparency, accountability, and efficiency to the carbon credit market, which is currently fragmented and lacks a standard pricing mechanism. COCO's carbon credits can be easily traded on the COCO marketplace, and can be exchanged for other cryptocurrencies or fiat currency, providing a flexible and liquid market for buyers and sellers. Thirdly, COCO's carbon credits can be verified by third-party auditors, increasing the credibility and value of the credits. Additionally, COCO's insurance fund can provide a safety net for buyers in case of faulty carbon removal certificates, increasing trust and confidence in the market. Overall, the business value and marketability of COCO's carbon credits are high, as they can provide a solution for the growing demand for carbon offsetting, while also adding transparency, accountability, and efficiency to the market. The profit capability of COCO will depend on various factors such as the demand for carbon credits, the price of carbon credits, and the operating costs of the project. However, with a well-designed business model and efficient operations, COCO has the potential to generate significant profits while also contributing to the reduction of carbon emissions. The COCO carbon marketplace aims to solve these problems by leveraging blockchain technology, smart contracts, and DAO governance to create a transparent, trustworthy, and standardized carbon credit marketplace. Firstly, COCO verifies the carbon removal and reduction claims made by companies by requiring them to provide audited data and emissions reports that follow internationally recognized standards such as GRI Standards. The data and emissions factors used in the calculations are stored in an immutable ledger, ensuring that they cannot be tampered with. This increases the transparency and reliability of the data and eliminates doubts about their accuracy. Secondly, COCO ensures that companies are following their emissions reduction plans by requiring them to submit regular progress reports that are reviewed by a third-party certifying entity. The auditors are given a digital identity that is recorded on the public blockchain, and all data and reports are stored in an immutable ledger, ensuring that they cannot be tampered with. Thirdly, COCO ensures that the carbon credits traded on its marketplace are standardized and certified by a third-party certifying entity that is objective and follows internationally recognized standards. Consumers and investors can trust that the carbon credits they purchase are legitimate and will help to reduce greenhouse gas emissions. Finally, COCO uses smart contracts and DAO governance to ensure that all transactions are transparent, automated, and secure. This eliminates the need for intermediaries and reduces the risk of fraud and corruption. Additionally, Hedera Hashgraph provides cryptographic signing of documents and storing of hash values on blockchains, making the data highly secure and tamper-proof. Overall, by leveraging blockchain technology, smart contracts, and DAO governance, COCO creates a transparent, trustworthy, and standardized carbon credit marketplace that addresses the trust issues associated with carbon credits.

COCO CARBON CREDIT NFTs

Blockchain making peer-to-peer carbon offset trading faster, cheaper, and easier. Hedera Hashgraph is designed to be highly scalable and energy-efficient, which means it can process a large volume of transactions while using minimal energy compared to other blockchain platforms. This makes it a more environmentally sustainable option for businesses that want to leverage blockchain technology while minimizing their carbon footprint. Overall, by using Hedera Hashgraph, companies can potentially reduce their environmental impact and contribute to a more sustainable future.

What is standardized in climate mitigation standards? First, there are technical standards like those of the W3C. How are carbon credit emissions calculated? We have Life Cycle Analysis (LCA) which is the standard analytical method for calculating the carbon emissions of a product through its carbon lifecycle supply chain. There is also Product Category Rules (PCR) with rules that define how life cycle analysis should be performed based on the type of product and can be linked to other MRV tools like LCA, PCR, and EPD. We can call these calculation methodologies or data processing standards. Application of such standards produce indicators, metrics and indices with a well-defined meaning where such outputs can be tokenised. Second, there are accounting standards, including: Greenhouse Gas Protocol the standards used for compliance in different carbon sequestration jurisdictions, voluntary standards like the Verra's Verified Carbon Standard (VCS), the Gold Standard, American Carbon Registry (ACR), or Climate Action Reserve (CAR). Lastly, we have environmental performance standards like those of the IFC to accelerate Paris Accord climate goals and certifications based on accounting standards, such as the Greenhouse Gas Protocol. Accelerates the need for standardization in the context of global climate action and reduced climate data silos. Application of these standards yield standards compliant reports. The contents of such report can also be tokenised in a Carbon Credit and Offset Ecosystem.

The COCO NFT marketplace is designed to provide an easy and efficient way for buyers and sellers to trade carbon credits represented by NFTs. One of the key features of the COCO marketplace is its decentralized nature, which means that it is not controlled by any central authority or organization. This ensures that the marketplace is transparent and that all transactions are verified by the Hedera Hashgraph blockchain. The COCO marketplace is accessible to anyone with an internet connection and is designed to be user-friendly. Buyers can browse the marketplace to find carbon credits that fit their specific needs, while sellers can list their carbon credits for sale. The COCO marketplace also offers low transaction fees, which makes it an affordable option for small and large transactions alike. One of the unique features of the COCO NFT marketplace is that each NFT represents ownership of the underlying carbon credit. This means that buyers can have confidence in the carbon credits they purchase, as they are backed by a tangible asset. Furthermore, the transparent and immutable nature of the blockchain ensures that the ownership history of each NFT is tamper-proof and easily auditable. The COCO NFT marketplace is a decentralized platform designed to enable the trading of carbon credits represented by NFTs. It is easy to use, accessible to a broad range of users, and offers low transaction fees. Its unique features, such as the representation of ownership through NFTs, make it a trustworthy and efficient marketplace for buying and selling carbon credits.

Transparency: COCO leverages the power of blockchain technology to provide full traceability and auditability of carbon credits, giving businesses and individuals the confidence that their investment in carbon credits is making a real and measurable impact on the environment. Efficiency: COCO provides a cost-effective and efficient platform for businesses and individuals to offset their carbon footprint, making it accessible to a wider audience. Credibility: COCO only accepts carbon credits that are properly verified and certified by reputable third-party organizations, ensuring that the carbon credits represented by NFTs on our platform are legitimate. Accessibility: COCO's platform is user-friendly and easy to navigate, making it accessible to both businesses and individuals who want to offset their carbon emissions.

https://hashscan.io/mainnet/token/0.0.2168309

Hash Explorer: https://hashscan.io/mainnet/token/0.0.2168309?p=1&k=1 Token ID: 0.0.2168309-rrdqr Symbol: COCO EVM Address: 0x00000000000000000000000000000000002115f5 Created at 10:31:05.4303 AMApr 20, 2023, EDT IPFS: ipfs://bafkreig5eerm2h6dzvwwed2gsb7kh7xupnobrbk5defooycb5kwjfeefom { "name": "Chain of Carbon Optimisation ", "creator": "COCO", "description": "Represent 1 tons of CO2 sequestered ", "image": "ipfs://bafybeidm2nso6wjjjdepzfs3ldmohrq35qk4scqq36yjrtwmpcvikhytym", "type": "image/png", "format": "[email protected]" }

Carbon emissions offset tokens: represents reduction of emissions through projects such as forestry, sequestration, etc.
https://ipfs.io/ipfs/bafkreig5eerm2h6dzvwwed2gsb7kh7xupnobrbk5defooycb5kwjfeefom {"name": "Chain of Carbon Optimisation ", "creator": "luc_low", "description": "Represent 1 tons of CO2 sequestered ", "image": "ipfs://bafybeidm2nso6wjjjdepzfs3ldmohrq35qk4scqq36yjrtwmpcvikhytym", "type": "image/png", "format": "[email protected]"} • Issuer ID = Certifier or Issuer • Recipient ID = Buyer • Asset Type = Emissions Offset • Quantity = amount • From/thru date time stamp = For emissions offset • Metadata = type of project, location, etc https://ipfs.io/ipfs/bafybeidm2nso6wjjjdepzfs3ldmohrq35qk4scqq36yjrtwmpcvikhytym

https://hashscan.io/mainnet/token/0.0.2168309 Audited emission tokens: represents the actual emissions of an organization, as reported by an auditor. • Issuer ID = auditor • Recipient ID = organization or entity • Asset Type = CO2 emissions • Quantity = amount of emissions • Metadata = • From/thru date time stamp = time period of the net emissions Renewable energy certificate tokens: represents energy generated from renewable sources • Issuer ID = Generator of REC • Recipient ID = Buyer of REC • Asset Type = REC • Quantity = 1 • From/thru date time stamp • Metadata = Region and Time of energy

WEBSITE NFT Marketplace

  • Ways to increase bounce rate "is a way to measure user engagement. You want your visitors to land on your page and do something. Even just browse around. If they don't, it could indicate that your page has issues with content, layout, copywriting, or user experience." Create trust in CO2 emissions accounts as they are transacted across industrial and national boundaries, where no trusted central repository exists by maintaining an audit trail of immutable records, so that emissions calculations could be verified later without relying on one central repository. Audits could be simplified by granting access to standard-monitoring and regulation enforcing entities. Compliance with voluntary standards could also be made more visible, accessible, and transparent for monitoring companies and those handing out certifications and consumers. Lack of transparency in pricing standards - Increase the interoperability/integration of CSR reports of different companies where we have A lot of different registries makes it difficult for buyers to track and a very heterogeneous market with different project types (forestry, renewables, etc.) and different regions. Different offsets trade vastly differently, from under $1 to nearly $50 per ton, even though they’re all denominated in tons of CO2 emissions. One $COCO token will be exchangeable for one Carbon Removal Certificate (CRC). With Chain of Carbon Optimization, suppliers can sell their certificates into the marketplace and get paid in tokens as soon as a buyer purchases their credits on a first-in, first-out (FIFO) basis.

HBAR cryptocurrency micropayments can be integrated into the COCO platform to facilitate small transactions between users. This would allow users to easily and quickly purchase carbon credits with HBAR, which can then be used to offset their carbon footprint. To use HBAR on COCO, users would need to have a HBAR wallet that is compatible with the platform. They can then transfer HBAR tokens into their COCO wallet, which can be used to purchase carbon credits. The use of micropayments with HBAR would allow for fast and efficient transactions with low transaction fees. This would make it easier for individuals and organizations to participate in the carbon removal economy and incentivize them to remove CO2 by offering a simple and convenient payment method. Overall, integrating HBAR cryptocurrency micropayments into the platform would help to create a more sustainable future by incentivizing individuals and organizations to reduce their carbon footprint and support the carbon removal economy. It is an easy, fast, and secure exchange in a truly decentralized way. We are going to create an ecosystem where people will launch their own decentralized exchange. It is a peer-to- peer (P2P) that connects buyers and sellers. The Exchange is non-custodial, meaning a user remains in control of their private keys when transacting on a hedera hashgraph platform.

  1. Carbon credit is listed for sale in the Chain of Carbon Optimization market queue in a first-in, first-out basis where once at the front of the queue, the next buyer purchases the carbon credit by sending $COCO tokens to the smart contract acting as market operator for the CRC. https://github.com/lucylow/COCO

  2. Owner immediately changes to the sending address tokens causing the smart contract record status to become retired and no longer allows a change of ownership which is recorded on the immutable ledger. https://github.com/lucylow/COCO2

How we built it

COCO Token

  • Issued by the Hedera Token service
  • Adopt the same performance security and efficiency as HBAR

Name COCO (or CO2)

Symbol COCO (or CO2)

INNOVATION

EFFECTIVENESS USING HEDERA

  • Hedera SDK
  • Programmability using Hedera Smart Contracts

""" Hedera Hashgraph (HBAR) – UCL Research's Most Environmentally Friendly Crypto. According to the UCL Centre for Blockchain Technologies Hedera Hashgraph is the most energy-efficient cryptocurrency among proof of stake coins with a 0.020 Watt Hour per transaction (Wh/tx) """

IPFS Metadata Storage Each carbon credit is linked to the COCO Hedera Token includes metadata storage as part of the Hedera protocol. The IFPS metadata.json contains the metadata for the NFT which could be checked on Hedera HashScan allowing for maximal decentralization, scalability, and unlimited size storage. The carbon credits on Hedera Hashgraph use IPFS metadata storage to store important information. Each carbon credit token includes metadata storage as part of the Hedera protocol, which is linked to the NFT. The file diploma_metadata.json contains the metadata for the NFT. This includes static and dynamic data that can unlocked by smart contract functionalities. Here, we are using peer-to-peer files with addresses and number encoding schemes. We are using SHA1 information hash to reference the file that stores the actual data and SHA 256 hash for higher security data for metadata to be stored directly on the bloThe diploma_metadata.json file contains both static and dynamic data that can be unlocked by smart contract functionalities. To ensure decentralization, scalability, and unlimited storage capacity, we use peer-to-peer files with addresses and number encoding schemes. We use SHA1 information hash to reference the file that stores the actual data and SHA256 hash for higher security data for metadata. By utilizing IPFS metadata storage, carbon credit tokens on Hedera Hashgraph can store all necessary information securely and transparently, allowing for easy tracking and trading of these valuable assets. The metadata stored for each carbon credit token includes: • Issuer identifier • Recipient identifier •Hedera Token token type (carbon emission, audited emission, or renewable energy certificates) • Quantity • Date/time stamp with VRF • IPFS metadata • Date/time stamp of when the asset was created with VRF • Automatic retirement date, when the token will be retired in the account of whoever holds it at the end of the year

Hedera Consensus Service (HCS): Timestamped MRV

Chain of Carbon Optimization (COCO) would integrate with the Hedera Consensus Service (HCS) in order to provide a transparent, secure, and efficient record of all carbon credit transactions on the COCO network. The Hedera Consensus Service is a distributed messaging layer that enables applications to securely and transparently communicate with each other. HCS allows COCO to store a tamper-proof record of all carbon credit transactions on the Hedera Hashgraph distributed ledger. This creates an immutable and verifiable audit trail of all carbon credit transactions, which is critical for the success and credibility of the COCO ecosystem. COCO will use HCS to record carbon credit issuance, transfer, and retirement transactions. When a carbon credit is issued by a verified carbon removal project, this information is recorded on the HCS ledger, along with details of the project, the amount of carbon removed, and the price paid in $COCO. When a buyer purchases a carbon credit, this transaction is also recorded on the HCS ledger, along with details of the buyer, the amount of carbon purchased, and the price paid in $COCO. Finally, when a carbon credit is retired, this transaction is also recorded on the HCS ledger, along with details of the buyer and the reason for retirement. By integrating with HCS, COCO ensures that all carbon credit transactions are transparent and verifiable, which is important for ensuring the credibility and trustworthiness of the carbon credit market.

  1. Carbon Negative NFTs
  2. Carbon Negative Commmitment - Sustainable public network (UCL Centre for Blockchain Technology)
  3. """Hedera Token Service enables cost reductions and greater efficiencies for marketplaces enabling companies to meet their sustainability goals"""

DAO Enterprise governance

  • network stability
  • no-fork guarantee
  • decentralized decision making

Challenges we ran into

What we learned

  • Hedera programming langauges = Javascript, Go, or JAVA
  • Need to learn Hedera HashGraph technology / code documentation
  • Native programmability with atomic swaps and scheduled transactions
  • On-chain hashgraph functionality

Accomplishments that we're proud of

  • Legal controls like - Patents & IP protections, No license required to use network, and open code source review as COCO's code is on Github
  • Name was inspired by self-made French fashion designer and businesswoman Coco Chanel. https://www.chanel.com/gb/climate-report/

What we learned

BUSINESS = MARKET POTENTIAL "Desirable product" / "High-Profit capability + marketability"

  • Scalable automation
  • Cost less than 1 cent USD to transfer any sum of a tokenized asset
  • Low and predictable transaction fees on the Hedera public network
  • API calls, creating a topic cost $0.01
  • API calls, sending a message to a topic cost $0.0001
  • Hedera fee calculator

• Market potential carbon members (Fortune 500 and Web 3.0, Universities) Membership max of two consecutive 3-year terms • Every member required to run a network node • No Forks Ensures simultaneous software upgrade • Patents & IP protections for legal controls •No license required to use network Open code review Network Decisions: Feature decisions •Manage treasury with Fee model and Node incentives

What's next for COCO (Chain-of-Carbon-Optimization)

  • Secure domain coco.hbar
  • Add Hedera Chat Demo? HCS Chat Demo
  • Apply for HBAR foundation's $250 Million Metaverse Fund and external development grants in Hedera Ecosystem
  • Add admin keys to COCO governance council, where you can change keys and if admin key is not set, token is immutable
  • Add KYC verification for configuration compliance with KYC key to add, update, or remove info from COCO token accounts
  • Add token transfer, wipe keys and freeze keys for AML - useful for when accounts get compromised where freezing token accounts means they cannot perform any transactions
  • DAO governance structure for the __% COCO Tokenization
  • Technical controls like no forks and simultaneous software updates like polkadot parachain
  • Network decisions like feature decisions, product roadmap, fee model node incentives manage treasury
  • Pancake swap + liquidity

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