An IoT-Enabled Blockchain Framework for Real-Time Carbon Sequestration Auditing and High-Liquidity Cross-Border Carbon Credit Trading Markets

• Sunday Sunday

  Ladoke Akintola University of Technology

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The global carbon credit market faces critical challenges including verification delays, double counting, greenwashing, and fragmented cross-border liquidity that undermine climate action integrity. This research proposes and validates an integrated IoT-enabled blockchain framework for real-time carbon sequestration auditing and high-liquidity cross-border carbon credit trading. Leveraging IoT sensor networks for continuous environmental data acquisition, AI-driven analytics for automated verification, and blockchain smart contracts for immutable transaction recording, the framework addresses the fundamental gap between physical carbon sequestration and digital market representation. Prototype implementation demonstrates a verification time reduction of 76% compared to traditional methods, achieving 89.4% accuracy in carbon credit validation while reducing transaction costs by 73% to $0.04 per ton CO₂e. The system's secure multi-party computation protocol ensures privacy preservation while maintaining regulatory supervision capabilities. This research contributes a replicable architectural framework for transparent, efficient, and trustworthy carbon markets with significant implications for policymakers, market participants, and climate action stakeholders.

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