Background: Significant innovations in technology and progressing use of renewable energy sources (RES) reinforce the demand for the sustainable, continuous and abundant supply of energy to every consumer. Blockchain, as an emerging technology promises to provide temper proof, secure, transparent and decentralized energy trading mechanisms that help to provide sustainable environmental solutions by circulating economy to empower both consumers and prosumers. The rapid development of blockchain technology has gained interest from energy start-ups, innovation developers, finance suppliers, academic institutions and government. Results: This study outlines potential significance, benefits and application of blockchain technology and analyses how Pakistan can integrate blockchain technology into its distribution system to cope with current challenges. Although the substantial renewable potential of Pakistan is an opportunity to implement blockchain technology but financial management, innovative technology development and acceptance of decentralized technology are the biggest obstacles. After a detailed discussion of Pakistan's current financial position, digital market structure, energy policy and technology situation for the implication of blockchain technology, Photographic Geographical Information System (PVGIS-5) data base tool is used to estimate solar power generation capacity from prosumer community in potential areas of country like Baluchistan. Conclusion: This study recommended feasible site for solar power generation according to PVGIS tool. Then introduces a street scenario about domestic power generation and blockchain based distribution into Pakistan's energy sector like Brooklyn energy system by regulating laws, revising energy polices and suitable development subsidies.