september 25, 2015 sacramento, ca zhang xiaoguang sinocarbon innovation & investment co.,ltd. c...
TRANSCRIPT
September 25, 2015Sacramento, CA
Zhang XiaoguangSinocarbon Innovation & Investment Co.,Ltd.
CONNECTIVITY CHOICES FOR REGISTRYWORKSHOP “BUILDING REGISTRIES TO SUPPORT THE NEXT GENERATION OF
CARBON MARKETS” PARTNERSHIP FOR MARKET READINESS
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Systems to be connected to a registry Connectivity architecture choices Connectivity protocol choices Security measures
Outline
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Potential systems
Trading System
Emissions Report SystemRegistry System
Other Registry Systems
Information source systems
Identity System
Auction platform
Third party platforms
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Objectives of connecting systems
• Perform cross market transactions• Reconciliations
• Perform cross market transactions• Reconciliations
Registries
• Perform cross platform carbon unit transfer transactions• Reconciliations
• Perform cross platform carbon unit transfer transactions• Reconciliations
Third party
platforms
• Achieve information from information source systems• Achieve information from information source systemsInformation
source systems
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Systems to be connected to a registry Connectivity architecture choices Connectivity protocol choices Security measures
Outline
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Central hub based online connectivity
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Peer to peer based connectivity
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Offline connectivity
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Comparison of connectivity architectures Central Hub Peer to peer Offline
Implementation complexity
High implementation complexity. Depends on the transaction rules
to be implemented. Relatively low for implementing
unified market rules.
High implementation complexity. Depends on the transaction rules to
be implemented. Relatively low for implementing
multiple rules.
Low implementation complexity.
Performance
Capable of processing automated transactions.
Relatively low performance due to central hub bottle neck.
Capable of processing automated transactions.
Relatively high performance due to peer to peer processing.
Not Capable of processing automated transactions.
Low performance due to offline processing.
Reliability
Central hub failure will affect all the connected systems.
Easy to ensure the reliability after updating central hub.
Single peer failure will not affect the connected systems seriously.
Difficult to ensure reliability after updating one peer.
High reliability.
Security Easy to apply unified security measures.Difficult to apply unified security measures.
Vulnerable to information stealth.
Maintenance cost
Relatively low maintenance cost for connecting a large number of systems using single market rules.
High maintenance cost for connecting a small number of systems.
Depends on the connectivity of each peer. Low maintenance cost.
Data consistency
Easy to ensure data consistency with central hub based transaction log.
Easy to ensure the unified transaction check rules.
Difficult to ensure data consistency among peers.
Difficult to ensure the unified transaction check rules without erros.
Difficult to react to data changes of a connected system.
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Implementation technologies
Socket level technology Webservice based technology
Implementation complexity
High Low
Performance High Low
Reliability Difficult to ensure reliability. Easy to ensure reliability.
Maintenance cost High Low
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Systems to be connected to a registry Connectivity architecture choices Connectivity protocol choices Security measures
Outline
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Connecting registries- principles
Specify the transactions.
Specify accounting models and transaction workflows.
Specify the carbon units involved.
Specify the transaction check rules.
Specify connection architecture.
Specify data package formats.
Specify data connection available rules.
Specify security rules.
Specify data transmission technology.
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Connecting registries- Brief review of DES
Available for processing most of the transactions in a
carbon market.
Unified accounting model and transaction workflows.
Support Kyoto units, and EUA.
Unified the transaction check rules.
Central hub based protocol.
Unified data package formats. (Serial number identifiers)
7X24 availability.
Unified security requirements.
SOAP based data transmission.
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Connecting registries- Peer to peer protocol with mirroring approach
Carbon unit cache account
Holding account
Holding account
System 1
System 2
Carbon unit information
Data exchange interface
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Connecting registries- Reconciliation
Validate account totals.
Validate carbon unit blocks.
Review transaction history logs.
Manual intervention.
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Connecting third party platforms
Mirroring approach can be applied.
Total validation level reconciliation.
Total records be determined by the registry.
Webservice based technology is applicable.
Offline approach can be applied.
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Connecting information source systems
Specify information synchronization cycle.
Specify information synchronization workflow.
Specify data package format.
Specify data update reaction scheme.
Websevice based technology can be applied.
Offline approach can be applied.
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Systems to be connected to a registry Connectivity architecture choices Connectivity protocol choices Security measures
Outline
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Connection risks
• Data leakage• Data tempering• Data inconsistency• Data loss• Fraudulent transmission
• Data leakage• Data tempering• Data inconsistency• Data loss• Fraudulent transmission
Online approach
• Data leakage• Data inconsistency
• Data leakage• Data inconsistency
Offline approach
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security measures
• Reliable workflow design• Data encryption scheme• Reconciliation• VPN connection• Point to point connection• IP and port access constraint• Dedicated connection sever• Other network security devices
• Reliable workflow design• Data encryption scheme• Reconciliation• VPN connection• Point to point connection• IP and port access constraint• Dedicated connection sever• Other network security devices
Online approach
• File encryption• Data change react scheme
• File encryption• Data change react scheme
Offline approach
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Zhang XiaoguangSinocarbon Innovation & Investment Co.,Ltd.
For more information on the Partnership for Market Readiness, please contact:
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