Blockchain Technology and Smart Contracts for Transformative Energy Trading

Abstract

The trend in renewable energy calls for safe peer-to-peer(P2P)energy trading in a microgrid. Blockchain technology (BCT) addresses this by providing a secure, tamper-proof ledger that enables transparent and sustainable energy exchange. This paper explores how smart contracts can make energy trading more efficient for microgrid users while securely recording all transactions for easy verification. The architecture designed for these smart contracts ensures reliable mechanisms such as simultaneous submission of bids, user registration, order placement and sorting, and automatic execution of the trading system. The proposed smart contract-based energy trading system improves energy efficiency and flexibility while supporting decentralized control within the microgrid. BCT directly contributes to the Sustainable Development Goal (SDG) 7 (Affordable and Clean Energy) by promoting this technology, increasing renewable energy in the global energy mix, and improving energy efficiency. Furthermore, BCT supports SDG 9 by creating a resilient and sustainable infrastructure through technological innovation. This paper provides a detailed analysis of the P2P trading scenario, smart contract pseudocode, and visualization of the smart contract implementation in Solidity, aiming to navigate the real-world application of P2P energy markets.