It is no secret that billionaire Mark Cuban is bullish on the cryptocurrency market and the technology that surrounds it.
And looking forward to 2022, Cuban is most excited to see the “new and distinctive” crypto purposes which will “exchange present enterprise processes,” he tells CNBC Make It. “Good contracts can change the world.”
Good contracts are digital agreements written in code and saved on the blockchain. They’re important in powering decentralized finance, or DeFi, applications and nonfungible tokens, or NFTs, amongst different issues.
This is not shocking, as Cuban has repeatedly talked about his perception in sensible contracts. Up to now, he is even attributed being an “Ethereum maxi” to the blockchain’s smart contract capabilities.
“I like [ether] extra [than bitcoin] as a result of I can see a vast variety of purposes that can change the [business and] client world endlessly,” Cuban tweeted on Oct. 16. “And to make use of them, it’s worthwhile to purchase [ether].”
Within the subsequent yr, the “Shark Tank” investor and Dallas Mavericks proprietor is hoping to see different use instances for sensible contracts develop. As one instance, Cuban mentions the potential to monetize carbon offsets utilizing the blockchain.
In principle, carbon offsets are supposed to help balance your carbon footprint by funding environmental initiatives that scale back greenhouse gasoline emissions. However some specialists have expressed deep skepticism over carbon offsets in regard to their effectiveness and reliability.
Critics of cryptocurrency and blockchain expertise additionally cite their doubtlessly destructive impacts on the atmosphere.
Nonetheless, Cuban sees the potential for carbon offsets to be verified and monetized utilizing blockchain purposes and tokens, he says. “I am already speaking to all of my corporations that may create carbon offsets and discussing whether or not they can begin monetizing them.”
However this concept of monetizing carbon offsets utilizing blockchain expertise continues to be new. Like with any funding, specialists suggest researching completely earlier than shopping for in. When contemplating any funding in cryptocurrency, specialists warn to solely make investments what you’ll be able to afford to lose.
Disclosure: CNBC owns the unique off-network cable rights to “Shark Tank.”