A Blockchain-Based Decentralized Smart Contract Framework for Secure and Transparent Issuance and Trading of Renewable Energy Certificates (RECs)

Abstract

The study explores the development of the I-REC standardized REC Trading Framework for Bangladesh, which can facilitate both local & international REC trading through a Nodal Agency. To implement such REC trading system, it is essential to establish a reliable, robust, transparent and secured REC trading platform that can gain global recognition and acceptance. Blockchain technology can play a crucial role to ensure transparency, security and trust in REC trading and verification system, as it offers a tamper-proof distributed ledger where RECs can be tracked from the issuance to the retirement. The entire process can be made automated using the self-executing algorithm called Smart Contract. This approach accelerates transaction processing and improves efficiency of record-keeping, minimizing the administrative overhead. Transactions such as the issuance, transfer, and redemption of RECs are securely recorded on the blockchain using cryptographic hashes of each block, making the process tamperresistant and easily auditable by all parties, thereby reducing the risk of fraud. Since blockchain employs a distributed ledger that is accessible to all stakeholders, global validators can independently verify the REC claims. The system's viability for national-scale deployment was validated using Ethers.js and the Remix VM, while its resilience was confirmed through a STRIDE-based threat assessment.