Solution

Decentralized Carbon Trading

The application of blockchain technology can be used to address the aforementioned market inefficiencies. The HydroLink ecosystem will provide a transparent, immutable, and secure ledger to improve reporting standards and processes.

The operational attribution of each shipment of hydrogen can prove, with unprecedented precision, how carbonintensive (or negative) the process was. The tokenisation of the carbon offset market presents a solution to ownership tracking, market liquidity, and cross-market integration. Data integrity must be incentivised to improve market confidence in the quality and standards of credits. HydroLink will utilise a multi-version concurrency control (MVCC) to prevent double-spending. This means that when multiple operations try to update the same key simultaneously, all but one update will fail. If two sellers attempt to transfer value to the same token, only one of the transfers will be successful. In the process of creating an NFT, the algorithm creates a unique transaction ID ensuring no duplicate keys can exist. Contention is a consideration whenever two processes seek to update a common resource and thus is inherent in any account-based implementation. This limitation can be addressed by queuing transactions. The application would queue the processing of transactions for endorsement and ordering and postpone processing of other transactions that update the same key until the first has either been completed or failed. An automated compliance checking mechanism will be added to check against a registry of approved methodologies. This approval will take the form of a cryptographic signature from the standard’s body within the metadata of a token.