Atomic Network

Starting a network is a significant challenge, and solving it requires identifying the best opportunity to create value between its two or more sides. Again, Andrew Chen calls this challenge the “Cold Start Problem” in his book 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 necessary participants in Carrot’s first atomic network for issuing credits from composting work. They include a Credit Buyer, a Methodology Creator and a Network Integrator. The Network Integrator also needs to have a Recycler of organic waste properly recording supply chain tracking and performing professional-grade composting work.

Note: The diagram above highlights the important role of the Network Integrator for the Carrot Network. By working with local logistics, waste management, and recycling application providers, Carrot can scale its services in markets that are already doing important work while also encouraging further digitization of supply chains with partners who are experts in their local markets. By providing Network Integrators a new revenue stream, they become incentivized to onboard all of their recycling customers onto Carrot, paving the way for rapid adoption.

Finally, by establishing an atomic network that works well, Carrot can expand geographically to other markets with a single methodology and/or introduce new methodologies that address the same market while expanding offerings to other waste streams.