A Blockchain-Based Scalability Solution with Microgrids Peer-to-Peer Trade

Abstract

In recent years, advancements in rooftop solar panel technology have sparked a revolution in the electricity markets. This has given rise to a new concept of energy exchange—the ability for consumers and producers to trade localized energy. This concept has been made possible by the emergence of blockchain technology, which has gained significant traction in the energy markets. Its unique ability to facilitate peer-to-peer (P2P) energy transactions has made it a promising solution for the trilemma of scalability, security, and decentralization. However, while blockchain technology has shown great potential, it is still in its early stages of development and has yet to reach its full potential. To fully understand the potential of blockchain technology in P2P energy trading, it is important to explore the trilemma in depth. This study proposes a blockchain-based scalability solution with a focus on P2P energy trading. This strategy is supported by empirical modeling, utilizing data gathered from a trial case study. The results of this study demonstrate that the suggested technique outperforms base-layer models in terms of scalability while still maintaining the essential elements of security and decentralization. This proposed solution not only has the potential to revolutionize the energy markets but also has broader implications. By providing a more secure and decentralized platform for P2P energy trading, it has the potential to address issues of energy distribution inequality and promote the adoption of renewable energy. With blockchain technology, individuals and communities have the opportunity to take control of their energy usage and production, reducing their reliance on traditional centralized energy systems. This not only has the potential to lower energy costs for consumers but also contributes to the overall goal of reducing carbon emissions and mitigating the effects of climate change. The combination of rooftop solar panel technology and blockchain applications has the potential to create a significant shift toward decentralized and sustainable energy systems. This will not only benefit individuals and communities but also have a positive impact on the environment and the global energy market. However, for this transition to occur, it is crucial that governments and energy companies continue to support and invest in these advancements.

Carbon and Energy Trading Integration within a Blockchain-Powered Peer-to-Peer Framework

“…To address these challenges, this study proposes a decentralized carbon trading system based on blockchain, leveraging its inherent security, transparency, and efficiency to facilitate ethical and effective carbon trading practices. We developed an innovative blockchain-driven peer-to-peer (P2P) trading platform for carbon allowances [14]. The proposed platform introduces several novel features that address the limitations of existing carbon trading systems:…”

P2P Energy Trading of EVs Using Blockchain Technology in Centralized and Decentralized Networks: A Review

“…Currently, there are multiple scenarios envisioned for energy trading networks, and some researchers have introduced optimized energy sources for distribution co-generations [91], encompassing a range of prosumers and consumers [70], from small-scale setups to local and city-wide electricity trading with grids [92]. The scalability directly impacts the overall costs and pricing of energy units within the P2P energy trading of EVs [93].…”

Blockchain technology in the renewable energy sector: A co-word analysis of academic discourse

“…[ 17 ], these issues necessitate innovative solutions [ 18 ], and blockchain technology has emerged as a potential key player in this regard [ [19] , [20] , [21] , [22] , [23] ]. As a decentralized ledger technology, blockchain offers secure and transparent data storage and exchange without intermediaries [ [24] , [25] , [26] , [27] , [28] , [29] ]. Blockchain is known for its immutability and transparency, which are qualities that make it foundational to cryptocurrencies [ 30 ].…”