Tokenized Carbon Credits
DOI:
https://doi.org/10.5195/ledger.2023.294Keywords:
Tokenized carbon credits, Decentralized Finance (DeFi), Regenerative Finance (ReFi), Voluntary carbon market (VCM)Abstract
Blockchains are well-suited for tokenizing, trading, and retiring voluntary carbon credits. However, tokenized carbon credits are a heterogeneous body of tokens on the blockchain, which hampers some key goals of the industry. We give a detailed exposition of the current state of tokenized carbon credits and the surrounding blockchain-based ecosystem, with the goal of clarifying current impediments to token interoperability and trading with high liquidity.
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