Carbon Bridge

Transfer carbon credits on and off of Toucan's registry

This section includes:

-> An overview of the Carbon Bridge

-> The Puro Bridge — live now!

-> The Gold Standard Bridge — coming soon.

The Toucan Carbon Bridge

Carbon credits are intangible assets. When they're issued, data about a credit's ownership status and status are tracked in a digital registry, which is usually provided by the standard body that certifies the credit.

Toucan's Carbon Bridge connects these registry systems with the Toucan registry. With our two-way bridge technology, carbon credits can be transferred on and off of the Toucan platform.

At its heart, the Toucan Protocol is a system of smart contracts that form an on-chain registry. Toucan is currently live on the Celo and Polygon blockchains.

-> Learn more about blockchains, smart contracts and our multi-chain registry in the Web3 resources section.

Toucan's Carbon Bridge allows anybody to bring their carbon credits on-chain. Through this transfer process, credits are tokenized. Tokens have multiple advantages over legacy credits, including:

• compatibility with Toucan's Carbon Pools,

• standardization across certification bodies,

• enhanced transparency,

• programmability,

• fractionalization into sub-tonne amounts, and

• composability with the emerging DeFi ecosystem.

We believe that carbon needs to be a multi-chain asset, and more public blockchains will be supported in the future.

How it works

On a high level, bridging is the process of securely transferring carbon credits between registry systems. Toucan's bridging procedure is designed in close coordination with standards bodies and their technical teams to make sure integrity is maintained. Through a series of automated checks and messages sent between the two sides of the bridge, these assets can be tokenized, detokenized and retired on-chain.

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Looking forward

Learn about what we have planned for the Toucan Carbon Bridge

If you're a long-time user of Toucan, you may notice that Version 1 of our Carbon Bridge to Puro.earth is slightly different than our previous bridge. We've released Version 1 as it is because we want to give you access to high quality supply as soon as possible.

Here's a glimpse of what's currently on our list of priorities for Version 2 of the Carbon Bridge:

• P1 - Batch splitting: In Version 1 of Toucan's Carbon Bridge to Puro.earth, you can only tokenize, detokenize, and retire in the original “batch” amount as listed in the Puro registry. For example, if Puro Project A (2023) is sold in the amount of 100 CORCs, you can only tokenize, detokenize, and retire in the amount of 100 CORCs. We’re excited to bring the improvement where the user can have full flexibility over the amount of CORCs they tokenize, detokenize, or retire at any given time. We estimate this going live in the first quarter of 2024.

• P2 - Permissionless: currently, you as a user have to rely on Toucan to initiate tokenization on your behalf. After batch splitting, we are planning to open access to tokenization and detokenization to all users directly from Toucan's app. This requires real-time, secure verification between Puro.earth's API and Toucan's app, which we're excited to co-develop with the Puro team.

More ideas? We'd love to hear what you want to see. Reach out to us at [e-mail]!