A comprehensive review of blockchain integration in smart grid with a special focus on internet of things

Abstract

The integration of blockchain and the Internet of Things (IoT) within smart grids offers transformative potential for enhancing energy management, security, and operational efficiency. Smart grids rely on advanced digital technologies to enable bidirectional communication between energy producers and consumers, optimizing the integration of renewable energy sources and promoting demand-side management. Blockchain technology, with its decentralized and immutable nature, ensures secure and transparent energy transactions while fostering trust without the need for centralized authorities. Meanwhile, IoT facilitates real-time data collection and monitoring, enabling dynamic energy management and transactive energy systems. This review explores the synergies between blockchain and IoT in addressing critical challenges such as cybersecurity, data security, and network security. By leveraging mechanisms like smart contracts and consensus algorithms, these technologies enhance grid resilience and privacy, providing robust solutions to manage distributed energy resources and decentralized energy markets. The integration also supports peer-to-peer energy trading, improves scalability, and reduces reliance on intermediaries, aligning with sustainability goals by promoting renewable energy adoption. Despite significant advancements, challenges such as regulatory barriers, high computational costs, and scalability limitations persist. This paper emphasizes the need for innovative approaches to overcome these issues and highlights emerging trends such as hybrid blockchain models and AI-enabled solutions. By addressing these gaps, blockchain and IoT can redefine smart grid infrastructures, ensuring a secure, efficient, and sustainable energy future.