A Review on the Applications of Blockchain-Based Smart Contracts in the Smart Grid

Abstract

Investigations in industrial and computational research emphasize the progress of blockchain-enabled smart contracts due to their resilient features, which include decen-tralised transaction storage, autonomous contract regulation enforcement, and distributed trust creation. Blockchain-powered smart contracts can transform operational frameworks in various sectors aiming for superior service delivery. The advantages this technology brings involve a multitude of applications that span industries as cryptocurrencies, logistics systems, agricultural practices, real estate operations, and energy trading among others. Notably though one crucial emerging application is within smart grids (SG). The decentralization aspect of blockchain is one of the most significant leaps in computing for smart grids. The application of blockchain aligns with the vision of having a decentralized electric grid by distributing renewable energy sources. Therefore, numerous efforts are being conducted to examine the prospects for the relevance of smart contracts and blockchain to the smart grid system. To this end, this paper aims to review the essential elements of blockchain-based smart contracts to emphasize their current capabilities for enhancing the transition to a decentralized smart grid with proposals on future research directions.