Atomic Network

Starting a network is a significant challenge, and solving it requires identifying the best opportunity to create value between its two sides. Andrew Chen calls this challenge the “Cold Start Problem” and recommends finding the first stable “atomic network” upon which all other networks can be built. Carrot has identified recycling credits and carbon credits from organic waste diversion from landfills towards professional composting facilities as its first atomic network. Organic waste represents approximately 50% of global waste, and almost all of it ends up in landfills, generating methane, a potent greenhouse gas, and contaminating recyclables, which also negatively impacts capture rates and their recyclability. By removing organic waste from waste and recycling supply chains, Carrot creates real value for all market participants.

The following image identifies the participants in Carrot’s first atomic network, which include a Credit Buyer, a Network Integrator, and the Recycler which in this case is a composting facility.

Note: The diagram above highlights the important role of the Network Integrator for the Carrot Network. Logistics, waste management, and recycling applications provide important services to market participants and capture significant amounts of data from the market. Carrot works with Network Integrators to help them improve data quality and create additional demand for their services, which in turn further digitizes supply chains. By working with Network Integrators Carrot can onboard all of their recycling customers, paving the way for scaling the market quickly.

Finally, by establishing an atomic network that works well, Carrot can replicate it in other markets and/or support other waste verticals within the same market.