The global carbon credit trading market faces significant challenges including lack of real-time verification, double-spending issues, and insufficient transparency in emission measurements. This paper presents a novel blockchain-enabled framework integrating Internet of Things (IoT) sensors for automated carbon credit generation and trading. Our proposed system combines tamper-proof IoT sensor networks with smart contract automation to address current limitations in carbon credit systems. The methodology employs distributed sensor nodes equipped with CO2, temperature, and humidity sensors connected to an Ethereum-based blockchain network. Through extensive simulation and real-world testing, our system demonstrates 99.2% accuracy in emission measurement and real-time carbon credit generation. The framework reduces verification time by 87% compared to traditional manual verification processes while ensuring immutable transaction records. Key contributions include: (1) a decentralized IoT-blockchain architecture for carbon monitoring, (2) smart contract protocols for automated credit generation, (3) a novel consensus mechanism for sensor data validation, and (4) comprehensive security analysis demonstrating resistance to common blockchain attacks. Results indicate significant potential for transforming carbon credit markets through enhanced transparency, reduced fraud, and improved environmental monitoring accuracy.
Ningthoujam et al. (2025) studied this question.