Blockchain-Powered Carbon Trading Market Efficiency: A Green FinTech Study

Abstract

The integration of blockchain technology into global carbon trading markets represents a significant and transformative innovation within the emerging field of Green FinTech. This technological advancement holds the profound potential to fundamentally enhance market efficiency, operational transparency, and dynamic price discovery mechanisms. Despite growing theoretical interest and speculative optimism surrounding decentralized ledgers, robust empirical evidence regarding their actual economic impact on environmental markets remains notably limited. Consequently, this study rigorously investigates whether the strategic adoption of blockchain architecture in carbon trading systems tangibly improves transaction efficiency, price accuracy, and overall market transparency. Employing a comprehensive mixed-methods approach that combines extensive quantitative market data analysis with in-depth qualitative case studies of early-adopting platforms, the research systematically evaluates blockchain's critical role as a foundational green financial infrastructure. The empirical findings conclusively indicate that blockchain implementation significantly accelerates transaction speed, substantially reduces intermediary costs, and ensures immutable data integrity, thereby mitigating fraud risks such as double counting. However, the analysis simultaneously reveals persistent structural challenges, particularly concerning network scalability, complex regulatory integration, and cross-chain interoperability. Ultimately, this study contributes substantially to the broader Green FinTech literature by providing concrete empirical evidence on blockchain's economic function and operational viability in carbon markets. Furthermore, it offers highly actionable, strategic insights for environmental policymakers, financial regulators, and market designers seeking to optimize sustainable trading ecosystems.