A Blockchain-Based On-Chain and Off-Chain Dual-Trusted Carbon Emission Trading System with Reputation Mechanism

Traditional centralized carbon emission trading systems suffer from data falsification, which is not conducive to the goal of carbon reduction. This paper proposes a blockchain-based on-chain and off-chain dual-trusted carbon emission trading system with reputation mechanism (BoodCET). We employ the Internet of Things technology, BigchainDB storage, and supervision by the Ministry of Ecology Environment for the “collection - storage - calculation - supervision” of carbon data to ensure the authenticity and credibility of carbon emission data off the chain. The Hyperledger Fabric is used to build a consortium blockchain network formed by enterprises and government regulated exchanges. BoodCET provides two trading modes, one-way auction, and agreement transfer. Enterprises get reputations by participating in trading and reducing carbon emissions, and enterprises with high reputation value have a high priority in carbon emission trading. To ensure that BoodCET does not disrupt carbon markets, we introduce a trading rationality review mechanism to review the rationality of carbon emission trading on the consortium chain. In this work, we implement a prototype of BoodCET and conduct a case study to evaluate the performance of the proposed system.