Crypto Carbon Alerts

The background of this project is deeply rooted in sustainability, especially in the context of upcoming regulations like California's SB 253 and SB 261, which require companies to report on their carbon emissions across Scope 1, 2, and 3. These regulations, along with growing pressures from big tech companies like Amazon and Apple, are pushing corporations to be more transparent about their emissions and take action to reduce them. To achieve net-zero emissions, these companies will need to purchase carbon offsets that compensate for the emissions they can't eliminate. However, there is currently a dearth of high-quality carbon credits, and the process of purchasing and managing them can be cumbersome. The Role of Blockchain: Blockchain offers a promising solution by enabling dramatic transparency in carbon credit transactions. It allows companies to seamlessly purchase and retire carbon credits, ensuring that these credits are verifiable and traceable. The application your team built aims to address this need by fractionalizing a variety of carbon credits into a single composite token, reducing friction for companies seeking to offset emissions across various projects related to their operations. Single Token for Multiple Projects: Companies often want to offset their carbon footprint by investing in a variety of projects such as:

• Reforestation
• Biochar production
• Direct air capture
• Solar energy credits However, managing multiple projects and carbon credits individually can be cumbersome and inefficient. We simplify this process by allowing companies to invest in a single composite token that fractionalizes different carbon credits. This approach makes it easier to manage, purchase, and retire these credits as part of their sustainability strategies. Addressing Greenwashing through Transparency: A major concern in carbon markets is greenwashing—when companies make misleading claims about their environmental impact. To combat this,our app integrates a subgraph from The Graph, which listens to changes in the wallet holding the carbon credits. When a transaction involving these credits occurs (e.g., transfer or retirement), it triggers notifications via XMTP to a public Telegram channel. This mechanism creates a layer of public transparency that makes it much harder for companies to claim they are offsetting emissions without actually doing so. By broadcasting the movement of carbon credits, our solution helps ensure that credits are genuinely being purchased and retired, thus enhancing the credibility of carbon offset efforts and making the process more accountable. Sustainability Impact: The goal of the project is to provide a transparent and efficient way for companies to offset their emissions while complying with new regulations. By offering a token that can fractionalize different types of carbon credits and integrating public monitoring through blockchain technology, the app aims to:
• Simplify the carbon credit purchasing process.
• Improve the quality and accessibility of carbon offsets.
• Enhance transparency in carbon markets, reducing opportunities for greenwashing.
• Encourage corporate responsibility in achieving net-zero goals. Your project leverages blockchain’s inherent strengths—immutability, transparency, and traceability—to address one of the most pressing challenges in sustainability today: how to make the purchase and management of carbon credits easier and more trustworthy.

Our team of three UC Berkeley students built for EthGlobal SF integrates several advanced technologies to create a unique solution for tracking and broadcasting crypto carbon credit movements. Overview: The project is a React-based application that leverages Alchemy, Ethereum smart contracts, Toucan Protocol, The Graph, and XMTP for decentralized carbon credit tracking. The purpose of this application is to allow users to authenticate, monitor, and interact with carbon credit transactions on the blockchain, broadcasting real-time updates to a Telegram bot for easy tracking. Detailed Components:

1. User Authentication with Alchemy’s Accounts UI Widget:
   • Functionality: Alchemy’s Accounts UI Widget enables seamless Web3 user authentication. It allows users to easily connect their Ethereum wallets to the application for interacting with smart contracts.
   • Purpose: This was used to simplify the user experience, ensuring they could authenticate and connect wallets without manual wallet connection coding, making it ideal for interacting with blockchain-based features.
2. Ethereum Smart Contract for Composite Crypto Carbon Credits:
   • Description: You’re in the process of developing an Ethereum smart contract that represents a composite token consisting of two different crypto carbon credits from the Toucan Protocol on Celo.
   • Composite Token: This contract aggregates two distinct carbon tokens into a single composite token, representing the ownership and movement of environmental assets, leveraging Toucan’s tokenized carbon credits on the Celo blockchain.
   • Purpose: This structure enables a more sophisticated representation of carbon credits and their trading/retiring on-chain.
3. Subgraph from The Graph:
   • Functionality: A subgraph was implemented to listen to a specific Ethereum wallet address that holds the crypto carbon tokens. The Graph is used to index blockchain data in real time, making it easier to query events like token movements.
   • Why The Graph: It allows for efficient and decentralized querying of on-chain events, ensuring that your application can track any movement of carbon credits in real-time.
4. XMTP for Secure Messaging:
   • Integration: XMTP, a decentralized messaging protocol, was integrated to broadcast updates when carbon credit transactions occur.
   • Functionality: Whenever a movement of the crypto carbon tokens is detected, XMTP sends a message to a predefined Telegram bot.
   • Real-Time Alerts: This feature allows users to subscribe to a Telegram chat where they can receive real-time updates on carbon credit transactions, providing transparency and instant notification of environmental asset movements.
5. Telegram Bot Integration:
   • Purpose: The Telegram bot serves as a user-friendly interface to view transaction updates outside the dApp. Any user can subscribe to the chat, allowing them to monitor crypto carbon movements.
   • Functionality: When the subgraph detects a transaction (e.g., carbon credit transfer or retirement), a message is sent to the Telegram bot via XMTP, making it easy for users to follow the activities without directly interacting with the blockchain. Key Features and Benefits:

• Decentralized Carbon Credit Tracking: By utilizing Ethereum and Celo for carbon credits, the app provides a transparent, immutable way to track carbon offsetting in real-time.
• User-Friendly: Authentication through Alchemy’s UI Widget ensures ease of use for Web3 users. Meanwhile, the Telegram bot offers a familiar environment for receiving updates.
• Comprehensive Visibility: The combination of blockchain (Ethereum, Celo), real-time data querying (The Graph), and decentralized messaging (XMTP) ensures end-to-end visibility into the movement of carbon credits.
• Scalability: The app’s architecture is designed to scale, allowing future expansion into more complex tokenized carbon structures or additional blockchains. Overall Impact: This application showcases how blockchain technology can be utilized for real-world environmental impact by making carbon credit transactions and their movements transparent and accessible to everyone. Our project helps foster a more transparent and verifiable way to monitor carbon credit flows, adding layers of accountability and community engagement through tools like Telegram.