We are inspired by Bitcoin and the first attempts to create Bitcoin Colored Coins. Especially the possibilities it creates for humanity are amazing.
What it does
Our software allows a trusted authority to issue CO2 certificates. However, these certificates will not be created out of thin air but will be paid out to forest owners in proportion to the carbon storage of the last year. Forest owners can use our Android app to sell these carbon tokens on the Bitcoin blockchain without an intermediary.
Supply and demand determine the price of carbon dioxide certificate tokens instead of a central government. CO2 producers can buy these tokens from forest owners. They do this as part of their climate agenda, for their reputation, or because it is required by law. When someone burns the CO2 tokens on the Bitcoin Blockchain, the tokens go out of circulation and the process becomes visible to all participants.
How we built it
We developed our app in Python (for administrator) and Java Android for users. The Python GUI for administrators was created with PyQT5. Counterparty-lib and Bitcoin-Core were also used to create and sign Bitcoin transactions. For CO2 token users, we programmed an Android app in Java that allows the generation of Bitcoin addresses, convert them to QR codes, query the balance of BTC and CO2t, and burn CO2t on the blockchain. BTC is needed to pay transaction fees for digital assets.
Challenges we ran into
The counterparty protocol and library are still at a very early stage. The API behaved inconsistently, and documentation was sometimes outdated and sparse. Unfortunately, the Counterparty Web Wallet did not follow the BIP standard for address generation. This made replication of hierarchical counterparty wallets very difficult.
Accomplishments that we're proud of
We are happy that we have accomplished so much in such a short time and even learned a few things along the way. Next week we will contact the main developer of Counterparty.io and ask our open questions and give feedback.
What we learned
We learned that Counterparty has a lot of potential, but is too complex. Simple things like signing and broadcasting transactions are very hard to master.
What's next for Decentralized CO2 Certificates
Next, we will look further into counterwallet mnemonics to generate debugging capable addresses. We will also upgrade our HDWallet formats, ask the main developer questions about signing "create_issuance" transactions and implement buy and sell orders. When we have that, we will approach forest owners to get on board.