Decentralized Energy Trading for Grids Using Blockchain for Sustainable Smart Cities

Abstract

Blockchain technology can be used to create a decentralized energy trading system for grids that rely on renewable energy sources. This system would allow individuals and organizations that generate renewable energy, such as solar or wind power, to sell excess energy to others on the grid through a peer-to-peer network. Blockchain has smart contracts that facilitate the transactions and ensure that the energy is exchanged securely and transparently. This type of system can increase the efficiency and flexibility of the grid, and help to improve the acquisition of sustainable energy resources. The system allows organizations and smart homes that generate sustainable energy to trade excess energy to others on the grid through a peer-to-peer network, facilitated by smart contracts. The use of blockchain in this manner can increase the efficiency and flexibility of grids and promote the adoption of renewable energy sources. Blockchain technology possesses the potential to transform the energy trading system by creating a decentralized, secure, and transparent P2P energy trading facility for grids that rely on renewable energy sources. This facility allows the trading of energy that is produced in excess by any entity through smart contracts. By using blockchain technology, the energy trading process is more efficient, secure, and transparent, and it can facilitate the adoption of sustainable energy sources. The implementation of such a system, however, requires collaboration between various stakeholders and compliance with existing regulations and standards of the energy sector. Despite the challenges, the potential benefits of a blockchain-based smart decentralized energy trading system make it a promising solution for the future of the energy sector.