Harnessing Web3 on Carbon Offset Market for Sustainability: Framework and A Case Study

TL;DR

This paper explores how Web3 and blockchain technologies can be harnessed to promote sustainability in the carbon offset market, proposing a structured framework and analyzing a real-world case to reveal key insights and potential impacts.

Contribution

It introduces a three-layer framework for blockchain-based sustainability utilities and provides a case study on Nori to illustrate these concepts and their implications.

Findings

Blockchain's role in sustainability is significant.

NFT-based carbon credits have unique value propositions.

Social media influences carbon offset market dynamics.

Abstract

Blockchain, pivotal in shaping the metaverse and Web3, often draws criticism for high energy consumption and carbon emission. The rise of sustainability-focused blockchains, especially when intersecting with innovative wireless technologies, revises this predicament. To understand blockchain's role in sustainability, we propose a three-layers structure encapsulating four green utilities: Recording and Tracking, Wide Verification, Value Trading, and Concept Disseminating. Nori, a decentralized voluntary carbon offset project, serves as our case, illuminating these utilities. Our research unveils unique insights into the on-chain carbon market participants, affect factors of the market, value propositions of NFT-based carbon credits, and the role of social media to spread the concept of carbon offset. We argue that blockchain's contribution to sustainability is significant, with carbon offsetting potentially evolving as a new standard within the blockchain sector.