Figure 8. Blockchain P2P energy trade structure
Blockchain is an exciting technology that can provide a distributed,
robust, stable, and privacy-preserving platform for energy trading. The
concept of blockchain leadership is to provide transparency and a
distributed chain as a data network to process verifiable transactions
as required effectively. Since the database may be spread among all
parties, the blockchain also has a clear consensus [118]. The
blockchain is made of blocks, and each block includes a certain number
of transactions known as block size. The blockchain is divided into five
planes: network, consensus, storage, vision, and side planes. The
network plane is in charge of connectivity, while the storage plane
stores the whole blockchain. The level of consensus is the most
important of them as it is responsible for seeing a concurrent,
all-encompassing network [119]. There are three kinds of
participants in the blockchain. The Verifiers are validated by verifiers
who solve a cryptographic problem (through a process called mining).
Partial nodes do not join in the authentication but maintain a
network-wide backup of the register. Users are the participants who
create the transfers and provide the contacts graphics to extract the
data. Mining creates a block that is added to the chain. The block is
split into two parts: transaction details and hash values [120]. The
advent of prosumers and smart grids creates different electricity
trading opportunities, allowing participants to conduct energy
transactions (including prosumers, grids and energy storage). Since
energy is the most critical economic development system, this paradigm
shift in energy trading necessitates establishing a stable, reliable
structure and promotes energy economics. Furthermore, trading mechanisms
should become more decentralized to safely open up the market to even
more people involved. Blockchain is an exciting technology that can
provide a distributed, robust, stable, and privacy-preserving platform
for energy trading [121].
Blockchain is chosen as a promising technology for peer-to-peer energy
transfer; there are multiple barriers to its widespread adoption:
- Scalability and privacy: Blockchain is still yet to demonstrate its
scalability, reliability, and protection.
- Development of cost: One significant obstacle is the blockchain’s
development cost. A transaction verifier, for example, requires a
considerable level of processing and intern power, which adds to the
expense of the conventional database system.
- Regulation: Blockchain is beginning to show promise in available
electricity exchange networks. However, the proposals presented
include organizational problems such as load handling, integration
with centralized control, and alignment with centralized networks
- Transaction costs: After any calculation, the transactions are added
to the blockchain. This is a complex and time-consuming process.
Various goals tend to define the technological, organizational and
economic architecture of developing blockchain-based infrastructure and
services. The following are the objectives of the technical
specifications:
- Scalability: Enable the models to be more modular to include newer
players.
- Decentralization: is not required by design. This vein can be used to
build energy exchange models where there is no central authority.
- Variety: Various sensors can occur. For example, electricity can be
exchanged between two vehicles or two homes. To support a variety of
models, models must integrate a wide range of devices and
technologies.
- Intelligence: There are two advantages to intelligence. The first is
that electricity can be delivered at the most affordable (or cheaper)
possible. There must be an advanced bidding mechanism, and the
customer must have the ability to choose.
- Internet of Things (IoT): At the center of the decentralized
blockchain are IoT computers. For example, electric vehicles are
equipped with Internet of Things devices and contact sensors in the
case of electric vehicles.
4.4. Transaction Workflow
Workflow is divided into three main parts. The term ”energy deal” refers
to any communication and negotiation between the buyer and the seller
[122]. The publication of the user’s offer/demand over the network
is an example of interaction before a trade. Various mechanisms can be
used to protect data and confidentiality (Figure 9). Seller Bidding In
bids between the buyer and the seller, recognition is performed to
determine the user’s right to deal with respect [123].
Entities: They are involved in the energy trade and divided into three
classes. These companies will be able to use smart meters and the
blockchain.
- The central utility manager: consists of the community, electricity
providers, and network owners who own the physical and technological
resources for energy sharing and transmission. It is responsible for
formalizing global order and organization.
- Power generators: use both conventional and renewable energy sources -
those with large energy reserves that supply power to the grid.
Commercial power suppliers include national grid controllers, small
grid owners, and turbine owners.
- Consumers/prosumers Energy: Prosumers have the added benefit of
producing and distributing excess electricity to other consumers in
the grid. Consumers/Prosumers may be private homes, hybrid vehicles,
or large structures.
One way to maximize consumer value is to accept payment methods. As a
result, the consumer will have more motivation because he will gain
quick rewards and investment potential. Second, there could be a way to
encourage more repeat consumers. For example, if a consumer sells to the
government, the buyer can be paid in a Power, cryptocurrency, or bill
change.
Real-time monitoring and supervision are critical in peer-to-peer energy
trading. The demand answer is the idea of shifting energy load from
low-demand users to high-demand customers. E.g., the household needs
less energy in the morning than in the office building. Similarly, the
condition is inverted at night. As a result, the power can be dispersed
as required.
Figure 9. Blockchain-based energy trading Taxonomy
4.5. Prosumer Energy Management Algorithms
One of the important and exciting features of the SG is the efficient
use of the power system features. Various optimization techniques are
used for prosumer-based energy management and smart grid features
[124]. One of the SG’s important and exciting features is the
effective use of power system technologies. For prosumer-based energy
management and SG applications, various optimization techniques are used
[125] For example, the authors reported in that to achieve
streamlined results, usage, costs, and satisfaction of all stakeholders,
Prosumer Energy Management (PEM) should have relied heavily on
optimization algorithms. Some descriptions of different modelling
methods for energy conservation and PEM optimization algorithms are
discussed, as shown in Table 4.
Table 4. Comparison of optimization PEM techniques