Blockchain-Based Decentralized Energy Trading Framework for Peer-to-Peer Smart Grid Systems

Abstract

The increasing integration of renewable energy resources and distributed power generation has accelerated the need for secure, transparent, and efficient energy management mechanisms in smart grid environments. Traditional centralized energy trading approaches often face limitations related to scalability, trust management, transaction transparency, and operational inefficiencies. This research proposes a blockchain-based decentralized energy trading framework for peer-to-peer (P2P) smart grid systems to enable secure and autonomous energy transactions among prosumers and consumers. The proposed framework utilizes blockchain technology integrated with smart contracts to establish a decentralized trading environment that ensures tamper-resistant transaction recording, automated billing, and transparent energy exchange without reliance on centralized authorities. A consensus-driven transaction validation mechanism is employed to enhance data integrity and network reliability while reducing the risk of fraudulent activities. The framework incorporates IoT-enabled smart meters for real-time monitoring of energy generation and consumption, facilitating dynamic pricing and optimized energy distribution. Performance evaluation is conducted using parameters such as transaction latency, energy trading efficiency, scalability, security resilience, and operational cost reduction. Experimental analysis demonstrates that the proposed framework significantly improves transaction transparency, minimizes intermediary costs, enhances energy utilization efficiency, and strengthens cybersecurity protection within smart grid networks. The results further indicate improved scalability and faster settlement processes compared with conventional centralized energy trading systems.