DOVU is a tokenized data economy for DeFi carbon offsetting.

$200B

Estimated 2030 carbon market

1 BTC

Transaction can power a US household for 23 days

Industry

Sustainability

Use Case

Tokenization of Assets & Data Integrity

Overview

DOVU is a tokenized data economy for DeFi carbon offsetting. It uses Hedera to inexpensively issue tokenized carbon credits to any person, business, or government, in order to fund projects which remove, capture, or sequester carbon from the environment.

Challenge

DOVU needed a cost-effective, secure, and scalable way to issue and create a marketplace for tokenized carbon credits. It also needed to ensure that project managers and land owners have the ability to update investors in a trusted way about the status of their land or project.

Solution

DOVU uses Hedera Token Service (HTS) to strengthen trust, improve scale, and reduce costs associated with tokenizing and transacting carbon credits in its decentralized marketplace. To ensure trust between land owners or project managers and their investors, DOVU uses the Hedera Consensus Service (HCS) for the immutable and publicly verifiable logging of investor documents and updates.

DOVU, partially owned by Jaguar Land Rover, is a tokenized data economy for DeFi carbon offsetting. Land owners who’ve implemented carbon sequestration practices can tokenize their land and make it easy for businesses and individuals to offset their carbon footprint through its decentralized marketplace. It connects land owners who’ve committed to carbon sequestering practices and investors or businesses who want to offset their carbon footprint.

Challenges in the carbon credit and sustainability industry today

Countries, corporations, or even individuals can issue, buy, and sell “carbon credits” which represent carbon dioxide’s removal, capture, or sequestration through long-term projects. Carbon credits are generated when carbon sequestration projects raise funds to get their operations off the ground. When carbon credits are purchased, they represent a carbon offset and enable anyone to become carbon neutral or negative. This type of market mechanism has the potential to drive many industries and nations towards more sustainable business processes.


There exist many challenges when it comes to the issuance and exchange of carbon credits today. For one, there’s no easy way to trust whether a plot of land or a forest of carbon-reducing trees has been sold 100 times over, otherwise known as the double-spend problem. When it comes to investing in carbon credits, access is far from democratized. It takes numerous expensive and slow intermediaries, paperwork, and legal authorization to fractionalize carbon credit projects, much less fairly exchange fractionalized credits in an online marketplace. And it’s inherently difficult for investors to trust the current status, lab reports, and other evidence of a long-term project’s progress today — documentation that’s considered important when it comes to determining the current market value of a project.


Public distributed ledger technologies (DLTs) have the potential to reduce or completely eliminate the challenges outlined above through the use of tokenization and the hashing of important documents and details of a carbon offsetting project. However, most DLTs fail to meet requirements due to their lack of scalable performance, economically prohibitive fees for token issuance and exchange, and/or unstable governance structures which lead to network forks, resulting in duplicate assets across multiple networks.

Tokenization of carbon credits and data integrity for carbon sequestration projects

DOVU chose Hedera for its low, predictable fees, scalable performance, and organization of global governing members that offer a no-fork network guarantee.


DOVU utilizes the Hedera Token Service (HTS) to reduce the complexity and cost of tokenizing carbon-offsetting projects of land owners and sustainability project managers. The cost of tokenizing land, for example, as a non-fungible token (NFT) is $1 USD paid in $HBAR on the public Hedera network and less than $0.01 USD to transfer; it will always be a low, predictable price to mint tokens using HTS on Hedera. In comparison, gas fees on Ethereum costs ~$80 - $100 USD today paid in $ETH for minting a non-fungible token, with pricing that fluctuates depending on current network usage and the price of $ETH — that’s potentially 99x more expensive. DOVU also found confidence in Hedera through its fair consensus timestamps and ordering of transactions. This ensures a fair marketplace that handles bids and asks based on the order in which trades are submitted, not the amount of gas paid by marketplace participants.


The Hedera Consensus Service (HCS) is used for publicly verifiable and immutable logging of project maintenance updates, documentation, lab reports, and more for anyone to view and assist in financial decision-making processes. DOVU has chosen to combine using HCS with Interplanetary Filesystem (IPFS) to ensure decentralized and trusted document storage for land owner and project manager updates, including lab reports, photographs, permits, or any other type of documentation that contributors may require.


Land owners, companies, nations, and even individuals can use DOVU, powered by Hedera Hashgraph, to issue and exchange carbon credits in real-time to support the reduction of their carbon footprint, enabling a more sustainable future for everyone. DOVU ensures greater trust for anyone looking to invest in and receive updates on carbon-offsetting projects, while ensuring fast, fair, and secure issuance and exchange of tokenized carbon credits. By using Hedera, DOVU sees greater customer adoption, retention, and satisfaction with inherent trust between platform users increasing the propensity to participate in their carbon credit marketplace.


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Hedera is not affiliated with, and does not sponsor or endorse this project.

Industry

Sustainability

Use Case

Tokenization of Assets & Data Integrity

Overview

DOVU is a tokenized data economy for DeFi carbon offsetting. It uses Hedera to inexpensively issue tokenized carbon credits to any person, business, or government, in order to fund projects which remove, capture, or sequester carbon from the environment.

Challenge

DOVU needed a cost-effective, secure, and scalable way to issue and create a marketplace for tokenized carbon credits. It also needed to ensure that project managers and land owners have the ability to update investors in a trusted way about the status of their land or project.

Solution

DOVU uses Hedera Token Service (HTS) to strengthen trust, improve scale, and reduce costs associated with tokenizing and transacting carbon credits in its decentralized marketplace. To ensure trust between land owners or project managers and their investors, DOVU uses the Hedera Consensus Service (HCS) for the immutable and publicly verifiable logging of investor documents and updates.