Optimized application and potential impact of blockchain technology in carbon trading

Abstract

The integration of blockchain technology with carbon trading opens up new avenues for carbon market optimization. The use of blockchain technology to address climate change is the main topic of this research. Using case studies as a basis, it examines how blockchain technology might help optimize the carbon trading market. It is discovered that the drawbacks and inefficiencies of the carbon trading market can be technically addressed by the current blockchain technology. Blockchain technology has been instrumental in increasing the market’s transparency and streamlining the trading procedure for carbon offsets. Green finance and blockchain technology work together to lessen “greenwashing” behavior, and their cooperation enhances the carbon trading market. This research offers a valuable resource for the enhancement and novelty of carbon trading methods, the growth of environmentally conscious financial enterprises, and the incorporation of the carbon market through the utilization of blockchain technology.