Technical Architecture

Internet of Things (IoT) Devices

• Description: IoT devices are used for monitoring and controlling various aspects of biogas production, such as gas output, temperature, and waste input.

• Technical Role: These devices capture and report real-time data to the blockchain. For example, sensors monitor methane levels, energy produced, or waste volume.

• Integration: The data from IoT devices is directly logged onto the blockchain using APIs or middleware to ensure that all information is secure and cannot be tampered with.

Blockchain Network

• Description: The core infrastructure for storing and processing transaction data, as well as smart contract execution. Public blockchain platforms such as BNB Smart Chain(BEP-20) can be used.

• Technical Role: The blockchain serves as a decentralized ledger to record biogas production, energy distribution, carbon credits, and the issuance of tokens.

• Benefits: It ensures transparency, traceability, and immutability. Smart contracts execute predefined actions based on data inputs (e.g., transferring tokens when certain energy production milestones are met).

Smart Contracts

• Description: Self-executing contracts where the terms are directly written into lines of code.

• Technical Role: Smart contracts automatically trigger actions based on predefined conditions, such as rewarding biogas producers with tokens for energy produced or carbon credits earned.

• Integration: When production data (from IoT devices) meets predefined thresholds (e.g., amount of energy produced), the smart contract automatically issues tokens, records the transaction, and updates the ledger.

Tokenization of Biogas Energy

• Description: The creation of a digital token representing a unit of biogas energy or environmental benefit (e.g., carbon credits).

• Technical Role: Tokens are issued based on the verified data from biogas production. Tokens can be exchanged in decentralized energy markets or traded as carbon credits.

• Blockchain Integration: These tokens are created and stored on the blockchain, where their ownership and transfer are tracked.

Decentralized Energy Marketplaces

• Description: Peer-to-peer platforms where biogas producers can directly sell their energy to consumers or traders.

• Technical Role: Blockchain enables transparent transactions and eliminates the need for intermediaries. Energy consumers can use tokens to purchase biogas, and producers can receive tokens for their energy.

• Integration: Smart contracts handle the transaction, ensuring timely payments and contract execution.

Carbon Credit Tokenization

• Description: Carbon credits are tokens that represent a reduction in greenhouse gas emissions, typically verified by third parties.

• Technical Role: Carbon credits are tokenized using blockchain, enabling easy trade and verification. For each unit of biogas energy produced, a certain number of carbon credits can be issued, recorded, and traded on blockchain networks.

• Integration: The issuance and trade of carbon credits are automated using smart contracts, with transaction details stored on the blockchain to ensure full transparency and traceability.

Decentralized Finance (DeFi) Protocols

• Description: DeFi protocols provide financial services such as lending, staking, and liquidity provision on decentralized platforms.

• Technical Role: Biogas token holders can stake their tokens to earn rewards, trade tokens, or use them for other DeFi activities. This increases liquidity and provides additional incentives for stakeholders.

• Integration: DeFi platforms integrate with the blockchain to offer token-related financial services.

Architecture Diagram Overview

1. Biogas Production (IoT sensors) → Blockchain Network (Smart Contracts)

   • IoT devices capture real-time data on energy production.

   • Data is sent to the blockchain to verify and store it immutably.

2. Blockchain (Tokenization)

   • Smart contracts create and distribute tokens representing energy production or carbon credits.

3. Decentralized Marketplace

   • Tokens can be exchanged for other cryptocurrencies or fiat, enabling direct transactions between producers and consumers.

4. DeFi Integration

   • Users can stake tokens, participate in liquidity pools, or lend tokens for additional rewards.

Conclusion

The decentralized biogas token system uses blockchain to track production data, tokenize energy and carbon credits, and enable efficient, transparent transactions. This architecture removes intermediaries, increases trust, and provides new financial opportunities for stakeholders. Blockchain’s security, transparency, and automation features create an ecosystem that encourages the growth of renewable energy while providing measurable environmental impact.