Blockchain-Based Framework for Smart Grid Energy Trading

Abstract

Smart grids integrate IoT devices and advanced communication technologies, enabling decentralized energy trading and optimizing energy management. However, widespread adoption faces challenges related to privacy, security, transparency, and scalability, which hinder the trust and efficiency required for such systems. Blockchain technology, particularly Ethereum, offers a promising solution by providing a decentralized and immutable ledger combined with smart contract capabilities for automated, trustless transactions. This study presents a blockchain-driven framework tailored for energy trading within IoT-enabled smart grids, focusing on privacy-preserving mechanisms, secure and tamper-proof transactions, and scalable solutions to handle high-frequency trading efficiently. The proposed system includes key operational phases, such as user registration, transaction validation, and block creation, ensuring robust data integrity and trust. By leveraging Ethereum’s decentralized platform, this framework promotes real-time monitoring, automated settlements, and secure energy trading while addressing scalability challenges through hybrid blockchain models. The proposed approach not only enhances energy management efficiency but also provides a sustainable and transparent pathway for the future of decentralized energy markets.