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:
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:
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.
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