Abstract
The climate change is one of the biggest problems that humanity is facing and there is a dearth of solutions in tackling this grave impediment to the long-term
sustainability of our planet. Accountability, greenwashing, traceability, impact
assessment and trading of carbon credits are unresolved issues in the ESG
sector. The paper aims at identifying the opportunity for Islamic finance by
reviewing the novel business model of DCarbonX, a Decentralized Application
(DApp) that solves the enumerated problems using NFTs on the blockchain
platform through smart contracts. The paper combined the inductive method
and descriptive approach to describe the functional architecture of DCarbonX,
while elaborating on its salient features and highlighting opportunity in
sustainable finance for Islamic finance players. The paper encompasses a
study on the applications of DApps in DeFi, Web 3.0 and ESG, among other
areas and gives a comparative analysis of blockchain platforms for DApp
development. The paper concluded that there is a harmony in the SDGs and
the primary goals of Maqasid al-Shariah. The blockchain platforms can be
sustainability of our planet. Accountability, greenwashing, traceability, impact
assessment and trading of carbon credits are unresolved issues in the ESG
sector. The paper aims at identifying the opportunity for Islamic finance by
reviewing the novel business model of DCarbonX, a Decentralized Application
(DApp) that solves the enumerated problems using NFTs on the blockchain
platform through smart contracts. The paper combined the inductive method
and descriptive approach to describe the functional architecture of DCarbonX,
while elaborating on its salient features and highlighting opportunity in
sustainable finance for Islamic finance players. The paper encompasses a
study on the applications of DApps in DeFi, Web 3.0 and ESG, among other
areas and gives a comparative analysis of blockchain platforms for DApp
development. The paper concluded that there is a harmony in the SDGs and
the primary goals of Maqasid al-Shariah. The blockchain platforms can be
| Original language | English |
|---|---|
| Journal | Bait Al Mashura |
| DOIs | |
| Publication status | Published - 7 Jan 2022 |
| Externally published | Yes |