NFT-based Secure and Decentralized Energy Marketplace Using Blockchain

Abstract

The energy sector faces inefficiencies, fraud, and lack of transparency, while the traditional peer-to-peer (P2P) energy trading market faces challenges of trust, interoperability, and flexibility. This paper proposes an innovative solution leveraging blockchain technology to address these issues. By representing energy units as unique, verifiable Non-Fungible Tokens (NFTs), our aim is to create a transparent, secure, and efficient energy marketplace. Our architecture integrates a Web3 marketplace with smart contracts to manage trading transactions, NFTs to visualize energy, and a sophisticated loyalty program to incentivize user participation. Furthermore, the platform improves user accessibility through cross-chain token bridging via the Across Protocol, enabling seamless fund transfers from Layer 1 or other Layer 2 networks to the Base network. These features collectively reduce entry barriers and expand market participation. Using blockchain technology, our solution addresses the limitations of traditional systems, offering enhanced security, user engagement, improved efficiency, and simplified access to the energy marketplace.