Blockchain-Enabled Energy Trading Platforms: Reviewing Current Implementations, Challenges, and Future Prospects

Abstract

Blockchain-enabled energy trading platforms have emerged as promising solutions for transforming traditional energy markets by enabling peer-to-peer (P2P) energy transactions and decentralized energy management. This abstract provides an overview of current implementations, challenges, and future prospects of blockchain-enabled energy trading platforms. Blockchain technology, known for its decentralized and immutable ledger system, offers several advantages for energy trading applications. By leveraging blockchain's transparency, security, and trustworthiness, energy trading platforms enable direct transactions between producers and consumers, bypassing intermediaries and reducing transaction costs. Moreover, blockchain facilitates the integration of renewable energy resources, demand response mechanisms, and smart grid technologies, fostering a more resilient and sustainable energy ecosystem. Several blockchain-enabled energy trading platforms have been deployed worldwide, showcasing diverse use cases and operational models. Platforms such as Power Ledger, Grid+, and WePower facilitate P2P energy trading among prosumers (producer-consumers) within microgrids or virtual power plants, empowering individuals and communities to monetize their excess energy generation and optimize their energy consumption patterns. These platforms utilize blockchain-based smart contracts to automate energy transactions, ensure transparent billing, and enable real-time settlement, enhancing efficiency and accountability in energy markets. Despite the potential benefits, blockchain-enabled energy trading platforms face several challenges and limitations. Scalability and throughput constraints of blockchain networks, interoperability issues among different blockchain protocols, and regulatory uncertainties pose significant barriers to widespread adoption. Moreover, the integration of physical energy infrastructure with blockchain technology requires robust cybersecurity measures to protect against cyber threats and ensure the integrity and reliability of energy transactions. Looking ahead, the future prospects of blockchain-enabled energy trading platforms are promising, with opportunities for innovation and growth. Advances in blockchain scalability solutions, such as sharding and layer-2 scaling solutions, hold potential for addressing scalability challenges and enabling large-scale deployment of energy trading platforms. Moreover, the emergence of interoperability protocols and industry standards, coupled with regulatory frameworks conducive to blockchain adoption, can foster greater interoperability and regulatory clarity in energy markets.