BYD and VeChain have come together to provide a carbon credit app. In a blogpost on Medium, VeChain revealed that BYD debuts their carbon banking solution which will run on VeChainThor platform. The VeChain-BYD partnership includes DNV GL, an international risk management company.
The news comes in the wake of a series of proof of concept (PoC) for the solution for car models. The app will record carbon-related data and store it on the VeChainThor public blockchain platform. The PoC for the solution has undergone verification by the three involved parties.
Smart data collection and management
According to the Medium post, “This solution utilizes VeChain’s automobile lifecycle management solution that encompasses nearly every branch of the automotive industry.”
This is in reference to the fact that the app will applicable to drivers, dealership shops, garages and insurance firms. Data will be easily accessible since the storage is on the blockchain platform. This means interested parties can view the data without alterations.
Further, the post details that the app will encourage travel by new vehicles that come with the car’s onboard computer. The device collects data and manages it in a smart way. BYD further details that the app is exclusively usable in plug-in electric cars.
Commenting on the developments, Sunny Lu, VeChain CEO and co-founder said, “As the global leader in green car manufacturing, BYD offered us the opportunity to pioneer real change. It takes innovators like BYD to make the world a cleaner place. Carbon banking will be a new reality for billions.”
The VeChain-BYD Partnership seems to not helping the VET
Apart from providing a storage platform, the VeChainThor provides a smart contract used to calculate a user’s carbon emission level. BYD uses the smart contract to issue carbon credits against the data available on mileage, fuel consumption and electricity consumption. The companies reveal that the carbon credit is redeemable for goods and services.
However, new VeChain-BYD partnership does not seem to be helping the tanking value of VeChain’s token (VET). Apparently, the price of the coin has fallen in recent times even as the company announces price boosting deals. One Twitter user (@BTCgroover) does not seem to understand the psychology of the crypto market in light of the developments.