Bitcoin‐Based Decentralized Carbon Emissions Trading Infrastructure Model

Abstract

This paper presents a system-of-systems architecture model for a Decentralized Carbon Emissions Trading Infrastructure (D-CETI) with focus on privacy and system security goals. The structure and behavior are implemented as a solution to the problem of trading carbon emissions anonymously among the trading agents. Privacy and security of the trading agents and their carbon credits are the main requirements behind the architecture of D-CETI. The decentralized structure of multiple systems and distributed behavior are the two main features of D-CETI that distinguish it from the traditional carbon trading schemes and protocols. D-CETI is based on Bitcoin, a peer-to-peer digital currency with no central authority, and Open Transactions, a system that simplifies the use of cryptography in financial transactions. The architecture of D-CETI is evaluated and compared with the architecture of five other carbon emissions trading platforms.

Integrated smart grid systems security threat model

“…The first one is concerned with increasing the security of the SG through the development of the decentralized and distributed consumersupplier relationship. The second study was concerned with the development of the SG Bitcoin-based decentralized trading infrastructure model [44]. Here we present excerpts from the first study and note the relevant threats handled in each.…”

Applying Blockchain to the Australian Carbon Market

“…The Technolibertarian cluster is aimed at attracting otherwise reluctant participants, due to privacy and security concerns, into a voluntary carbon market (Al Kawasmi et al ., ). This Technolibertarian model takes the Bitcoin model as its foundation.…”

“…This model also proposes that through smart devices that a blockchain could produce its own carbon credits for trading. This Technolibertarian model is classified as an open, public blockchain with decentralised consensus (Al Kawasmi et al ., ).…”

“…Under each of these four clusters, the respective blockchain models will be introduced. These clusters are: a “Networked Carbon” cluster (Macinante, , ; Jackson et al ., ; Dong et al ., ); an “Industry 4.0” cluster focusing on automation and digitisation (Fu et al ., ; Khaqqi et al ., ); a “Technolibertarian” anonymous carbon trading cluster (Al Kawasmi et al ., ); and an isolationist smart contract‐based “Voluntary Offset” cluster (Leonhard, ,b). …”

A Survey of Blockchain-Based Solutions for Energy Industry

“…Paper RP-1 [29], RP-2 [11], RP-9 [23], RP-10 [13], RP-16 [18], RP-19 [8], RP-20 [4] have a concrete design for their system have already implemented algorithms or software code and have done quality tests such as scalability, transparency, security, performance etc and presented analysis and simulation results. So all together we can categorize these papers into an existing prototype.…”