As a blockchain network in the cloud, Carrot applies a series of technical solutions to verify environmental gain, identify good actors and reward them for their environmental contributions. First and foremost, the Recycler is a homologated actor that has undergone a third-party audit. Certification of recycled waste is conducted in accordance with a methodology developed by an independent individual or organization considered an expert in the field and approved by the Carrot community. Supply chain tracking is enabled through the use of MassIDs and ProductIDs that are codified in the Carrot Network and updated through hauling, sorting and recycling events submitted to the network by logistics and waste management applications (Network Integrators). The updates to MassIDs and ProductIDs, verified through rigorous rules, identify waste responsibility and establish the chain of custody of resources and products, the combination of which serves as “Proof-of-Physical-Work”. Verification models for certification of recycling are run based on a given methodology to confirm supply chain tracking and recycling work, measure environmental gain and issue TRCs and TCCs. These activities, along with the distribution of rewards, are recorded digitally in the Carrot Registry and can be verified by auditors, credit buyers, regulators, shareholders, employees, customers, or anyone else. An end-to-end digital process for certifying and issuing credits is commonly referred to as dMRV (digital Measurement, Reporting, and Verification) solution, understood as the next evolution of the process needed for issuing carbon credits in a transparent and trustworthy manner.

The Carrot product is a dMRV solution for the circular economy. It is the foundation for the next version of the offset markets, both for recycling credits and carbon credits. Below is a diagram that shows the workflow that begins with capturing data from the market and concludes with credits distributing rewards to supply chain contributors and being retired to the Carrot Registry.

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