Blockchain-Enabled Decentralized Energy Trading in Smart Grid Systems
Abstract
This paper aims at examining how blockchain technology allows decentralized energy trading in smart grid systems with the focus on security, scalability, and transparency of the peer-to-peer transactions. The research utilizes a secondary research approach, integrating the information found in recent peer-reviewed journals, IEEE statements, as well as case studies in order to assess blockchain frameworks, consensus mechanisms, and IoT-enabled smart metering. The results indicate that architectures, such as blockchains, are supported by cryptographic validation and smart contracts, reduce billing disputes by 35 percent and forecasting errors by 22 percent. The scalability of the consensus protocols like PBFT and Proof-of-Authority emerged as effective as they had high efficiency of up to 1,500 TPS and a block-confirmation time in less than a second in comparison to energy-consuming Proof-of-Work. Some possible solutions were: the use of IoT-integrated smart meters to enhance the real-time demand forecasting and dynamic pricing accuracy and the use of hybrid on-chain/ off-chain solutions which solved the issues of scalability and congestion. Although interoperability and cyber-physical security issues need to be resolved, blockchain integration showed great promise in achieving democratized, efficient, and resilient smart energy markets of emerging smart grid environments.
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