  Decentralized applications developed using blockchain technology provide
innovative business models to serve the human race and solve existing
challenges. Climate change is one of the biggest problems 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. In this paper, we present a novel decentralized
application software, DCarbonX, that solves the enumerated problems using NFTs
on the blockchain platform, through smart contracts. The paper describes the
functional architecture of DCarbonX, while elaborating on its salient features
and utility in sustainable finance, in particular green sukuk. DCarbonX is a
pioneering software providing an exchange for trading of carbon credits. The
software facilitates logging of impact and traceable transactions in a carbon
market, that would help to prevent duplication of records and greenwashing. The
paper discusses the efforts being undertaken to achieve the climate goals as
per the Paris Agreement and also highlights the pivotal obstacles to achieving
carbon neutrality by 2050, as per COP26. The paper also 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
is also a pioneer in highlighting the challenges that plague dapp development,
deployment and usage.
