Cost-Effective Integration of Blockchain Technologies Into P2P Energy Trading Systems

Abstract

This paper explores the integration of Blockchain technologies into the Peer-to-Peer (P2P) energy trading systems, highlighting the challenges and advantages associated with their real-world use. A comprehensive literature review provides insights into the complex landscape of Blockchain technologies and their applications in energy trading. The study examines the functionalities of decentralized marketplaces, including components of the P2P energy trading ecosystem, from virtual trading platforms to physical infrastructure. Acknowledging the transformative potential of Blockchain in revolutionizing traditional energy marketplaces, we propose a pragmatic and cost-effective solution tailored specifically for P2P energy trading in small communities. The multi-layer architecture includes the energy marketplace layer, the off-chain transaction layer, and the Blockchain layer. The marketplace operates on a distributed architecture with multiple participating peers, conducting all trading activities within an off-chain Decentralized Application (DApp) layer for low-cost, rapid, and efficient implementation. Transactions are executed through Smart Contracts on the Blockchain and securely recorded on the distributed ledger. The semi-private Blockchain network is employed with the Proof of Authority (PoA) consensus mechanism, ensuring optimal performance and controlled transaction validation. The proposed design aims to establish a foundation for future developments and provide valuable insights for researchers and practitioners.