Blockchain-based Carbon Emissions Trading System

Carbon emissions trading is a market mechanism adopted to reduce global greenhouse gas emissions,especially carbon dioxide.Under this mechanism,carbon dioxide emission rights are considered a commodity,and a buyer uses a carbon trading platform to obtain a certain amount of carbon dioxide emission rights from a seller after paying a certain amount of money to the seller.Since 1997,when 192 countries signed the Kyoto Protocol,countries have implemented or planned to implement carbon emission trading systems.China has also actively established a carbon emissions trading market and has achieved certain results.However,there are still certain problems,for example,the pilot exchanges are independent of each other,and the duplication of functions causes a lot of waste of human and material resources and financial resources,and different pilots have different degrees of disclosure of information such as the total amount of carbon emission allowances,which leads to the high cost of obtaining information for enterprises participating in trading,which in turn causes enterprises to gradually lose confidence in the market.In addition,the traditional carbon emissions trading model has neither established a data sharing mechanism nor formed an effective trust mechanism,and both parties have to put more effort into negotiation when participating in the transaction and the transaction process is lengthened.All these problems have led to the widespread demand for a unified,open,transparent and trustworthy carbon trading data sharing platform and a simplified trading process.At the same time,information such as historical emission records are private data of enterprises,and we also need to protect the privacy of historical emission data of enterprises when building the platform to avoid data leakage.The decentralized,tamper-proof and traceable features of blockchain itself can be well empowered for the traditional carbon emission trading process.In this thesis,we design and implement a carbon emission trading system using blockchain technology,smart contract technology and cryptography algorithm.The system mainly solves the problems of data sharing of emission data and carbon emission credits among different organizations such as emission control enterprises,government authorities and third-party verifiers and the privacy protection of emission data,in addition to designing an intelligent carbon trading model to simplify the trading process and improve the trading efficiency.The main work of this paper lies in the following aspects:(1)Investigating the current situation of China’s carbon emission trading market,analyzing the problems and shortcomings in China’s current carbon emission trading market,and describing the current situation of domestic and foreign research on blockchain technology combined with carbon emission trading market.(2)To propose corresponding solutions to the existing problems.By combining blockchain technology with traditional carbon emission trading process,an open,transparent and traceable carbon emission trading system is established,and the privacy protection problem arising from data sharing is solved through hash algorithm and asymmetric encryption algorithm in cryptography technology.Only the last double-signed bid message will be recorded on the chain using the smart contract,and all off-chain transactions in the middle will be invalid.It also sets up a reporting mechanism to verify the validity of transactions,allows auction participants to monitor each other,and raises the cost of cheating through punitive measures.(3)The overall requirements of the system are briefly described,the system functions are further clarified through role function use case diagrams,each function point is explained,and the overall architecture and data model of the system are studied and designed.Then,based on the design of the system functional modules,the detailed design content of the functions is demonstrated using flowcharts,and the detailed details of the implementation are demonstrated through timing diagrams and smart contract pseudo-code descriptions.(4)Functional and performance tests are conducted for the smart contract part of the system functional implementation,and the results of the functional and performance tests are shown.