Sustainable and Secure Metaverse Economies: Review of the Application of Renewable Energy Cryptocurrency and Tokens

Abstract

One of the hurdles in the widespread commercial deployment of renewable energy is the lack of a mature market-oriented trading system. Beyond the intermittent nature of power generation and the mismatch between production and demand in renewable energy, the operational complexities include a multitude of trading entities, intricate trading mechanisms, and significant regional variations in policy management, which are further compounded when considering the integration of such systems within the secure and rapidly evolving digital ecosystems of the Metaverse. This poses distinct challenges for distributed renewable energy suppliers, highlighting the urgent need for information-based methods to support transaction decision-making and ensure robust security frameworks for Metaverse environments. Leveraging blockchain technology’s decentralized, transparent, and high-frequency trading capabilities, a segment of renewable energy firms are venturing into blockchain-enabled renewable energy trading systems that mirror the security measures crucial for transactions in the Metaverse. Currently, blockchain applications in renewable energy mainly focus on P2P energy transactions and shared energy storage. Cryptocurrencies and energy tokens are two bridge tools of the renewable energy blockchain. This work begins by examining the background and investigating hundreds of renewable energy projects with over 50 cryptocurrencies and energy tokens. Then, this work systematically summarizes the 1) Financing, 2) Settlement, 3) Permission, 4) Carbon Credits and Carbon Offset, and 5) Incentives and reward functions of cryptocurrency and tokens in the renewable energy blockchain. Additionally, the paper delves into the advantages and disadvantages of cryptocurrencies and tokens within the Metaverse economy. It offers a comprehensive analysis of their impact on both the renewable energy sector and the broader digital economic landscape and suggests pathways for their future development.