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 functions that will “substitute current enterprise processes,” he tells CNBC Make It. “Sensible contracts can change the world.”
Sensible 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.
“I like [ether] extra [than bitcoin] as a result of I can see an infinite variety of functions that may change the [business and] shopper world endlessly,” Cuban tweeted on Oct. 16. “And to make use of them, you want to purchase [ether].”
Within the subsequent yr, the “Shark Tank” investor and Dallas Mavericks proprietor is hoping to see different use circumstances for good contracts develop. As one instance, Cuban mentions the potential to monetize carbon offsets utilizing the blockchain.
In concept, carbon offsets are supposed to help balance your carbon footprint by funding environmental initiatives that cut 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 know-how additionally cite their probably unfavorable impacts on the surroundings.
Nonetheless, Cuban sees the potential for carbon offsets to be verified and monetized utilizing blockchain functions 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 know-how remains to be new. Like with any funding, specialists advocate researching totally 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.”