Carbon Trading with Blockchain

Richardson, Andreas; Xu, Jiahua

doi:10.1007/978-3-030-53356-4_7

Cited by 24 publications

(10 citation statements)

References 15 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Various works are presented in the literature on carbon trading in blockchain systems, as shown in Figure 13. Richardson and Xu 10 implements a permissioned blockchain and present an ETS model with both future‐proof and backward compatible. In Zhang et al, 61 a smart carbon trading framework based on blockchain is presented where the process of carbon trading is optimized and the smart contract is employed.…”

Section: Application Of Blockchain In Energy Tradingmentioning

confidence: 99%

“…It has the potential to accelerate the global deployment of an emissions trading system (ETS) and improve the efficiency of existing systems. 10 With this technology, verification of transmitted data and information is no longer done through a central actor, but through a peerto-peer (P2P) network. 11 By providing a decentralized and immutable ledger, blockchain ensures transparency, security, and accountability in carbon markets.…”

Section: Introductionmentioning

confidence: 99%

“…Blockchain technology has found a transformative application in carbon trading, revolutionizing the way emissions are monitored, recorded, and traded. It has the potential to accelerate the global deployment of an emissions trading system (ETS) and improve the efficiency of existing systems 10 . With this technology, verification of transmitted data and information is no longer done through a central actor, but through a peer‐to‐peer (P2P) network 11 .…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Towards the net zero carbon future: A review of blockchain‐enabled peer‐to‐peer carbon trading

Parhamfar,

Sadeghkhani,

Adeli

2024

Energy Science & Engineering

View full text Add to dashboard Cite

The increasing trend of energy generation and management systems towards decentralized structures such as using renewable energy resources makes it necessary to use digital and smart platforms for exchanging information and even conducting financial transactions in a decentralized manner, known as the peer‐to‐peer model. The decentralized transaction verification of cryptocurrencies makes it possible to use these encrypted currencies and decentralized blockchain networks in energy management systems and carry out financial transactions related to carbon trading. Carbon and other greenhouse gas (GHG) emission trading systems reduce the competitiveness of fossil fuel projects in the market and accelerate investment in low‐carbon energy sources such as wind and photovoltaic power generation units. This market mechanism allows large entities such as countries and companies that emit GHGs into the atmosphere to buy and sell these gases. This paper reviews the blockchain solutions developed for carbon markets. Studies related to the design of smart contracts in the platform of blockchain are investigated. Special cryptocurrencies that are used in the field of green energy transactions and carbon trading are introduced. In addition, the application of artificial intelligence and game theory in energy trading is stated. The study of different blockchain frameworks for carbon trading shows that the use of decentralized platforms in carbon trading can have a significant impact on the trend towards low‐carbon measures and achieving the goals of the Kyoto Treaty, increasing the value of green cryptocurrencies and the volume of transactions. These technologies offer a promising avenue for creating a more decentralized, efficient, and environmentally conscious energy ecosystem.

show abstract

Section: Application Of Blockchain In Energy Tradingmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Towards the net zero carbon future: A review of blockchain‐enabled peer‐to‐peer carbon trading

Parhamfar,

Sadeghkhani,

Adeli

2024

Energy Science & Engineering

View full text Add to dashboard Cite

show abstract

“…AMMs have been studied in different contexts, including carbon trading with Bancor [23] and general decentralized marketplaces as discussed in [24]. This paper abstracts the generalizable information from those contexts with the goal of providing a comprehensive fundamental overview of AMM mechanics.…”

Section: Related Workmentioning

confidence: 99%

SoK: Decentralized Exchanges (DEX) with Automated Market Maker (AMM) Protocols

Xu,

Paruch,

Cousaert

et al. 2021

Preprint

Self Cite

View full text Add to dashboard Cite

As an integral part of the Decentralized Finance (DeFi) ecosystem, Automated Market Maker (AMM) based Decentralized Exchanges (DEXs) have gained massive traction with the revived interest in blockchain and distributed ledger technology in general. Most prominently, the top six AMMs-Uniswap, Balancer, Curve, Dodo, Bancor and Sushiswap-hold in aggregate 15 billion USD worth of crypto-assets as of March 2021. Instead of matching the buy and sell sides, AMMs employ a peer-to-pool method and determine asset price algorithmically through a so-called conservation function. Compared to centralized exchanges, AMMs exhibit the apparent advantage of decentralization, automation and continuous liquidity. Nonetheless, AMMs typically feature drawbacks such as high slippage for traders and divergence loss for liquidity providers. In this work, we establish a general AMM framework describing the economics and formalizing the system's state-space representation. We employ our framework to systematically compare the mechanics of the top AMM protocols, deriving their slippage and divergence loss functions.

show abstract

“…The few studies to date suggest that the details of market design can influence the perception of uncertainty, and in turn the performance of the market. More specifically, investment behaviour into the Clean Development Mechanism (CDM) has been influenced by uncertainties in terms of what types of projects are eligible (Castro and Michaelowa, 2011), as well as the actual number of Certified Emissions Reductions (CERs) that can be acquired from a given project (Richardson, 2008).…”

Section: �6�5�1 Instruments Creating Market Penalties For Ghg Emissionsmentioning

confidence: 99%