Verification

The M2M Verification Stack

Carbon trading only becomes “infrastructure-grade” when measurement, reporting, verification, and settlement form a verifiable chain. This stack is designed for automated issuance and machine-to-machine settlement without sacrificing compliance, auditability, or security.

Stack layers (from measurement to settlement)

  1. 1) Measurement

    Sensor- and data-driven evidence (IoT, satellite, metering, industrial telemetry) with provenance metadata. Where automation is used, the data stream must be tamper-evident and attributable.

    • Inputs: sensors, remote sensing, SCADA, project logs
    • Controls: time-stamps, device identity, anomaly detection

  2. 2) MRV logic

    Monitoring, Reporting, and Verification (MRV) translates raw evidence into an auditable claim (what was measured, how it was calculated, and under which methodology).

    • Methodology: [METHODOLOGY NAME / STANDARD]
    • Calculation: versioned formulas + assumptions

  3. 3) Attestation

    Independent verification statements, review trails, and controls that make the claim defensible (and contestable) under scrutiny.

    • Evidence pack: reports, sampling logic, QA/QC logs
    • Attestor identity: [AUDITOR / VERIFIER ENTITY]

  4. 4) Registry anchoring

    A credit must be uniquely identifiable and traceable to avoid double-issuance and double-claiming. Registry IDs and status changes (issued, transferred, retired) are treated as first-class state.

    • Unique ID: [REGISTRY_ID]
    • Status: issued → transferred → retired

  5. 5) Tokenization & custody controls

    If tokenized, the on-chain representation must preserve uniqueness, retirement semantics, and audit mapping to the off-chain record.

    • Token policy: 1 token = 1 verified unit (with retirement lock)
    • Custody: [INSTITUTIONAL / NON-CUSTODIAL] controls

  6. 6) M2M settlement

    Smart contracts settle transfers with enforceable constraints: eligibility, limits, sanctions screening hooks (where required), and automated retirement.

    • Settlement: atomic delivery vs. payment logic
    • Oracles: manipulation-resistant feeds + failover

  7. 7) Security, audit & insurance logic

    Protocol risk is treated like financial infrastructure risk: code audits, monitoring, incident response playbooks, and coverage logic for technical failure modes.

    • Controls: audit reports, bug bounties, runtime monitoring
    • Coverage: oracle failure, contract exploit, settlement halt (defined triggers)
Read the stack specification (GitHub) Primary sources

Note: co2.trade does not “create” climate impact. It standardizes how impact claims are verified, represented, and settled—so markets can price them without blind trust.