Decentralization and Blockchain: Comparative analysis of energy management uses
TL;DR
It is reported how blockchain technology can, through its decentralized and secure nature, enable transparent, automated and peer-to-peer (P2P) energy transactions.
Abstract
Rising energy demands, the proliferation of sustainable and renewable energy sources, are calling for a new perspective on conventional energy system management. this paper reports how blockchain technology can, through its decentralized and secure nature, enable transparent, automated and peer-to-peer (P2P) energy transactions. We conduct a comparative evaluation of BC applications in three diverse domains: renewable energy, smart grid and Microgrid, and P2P trading platforms. This article discusses different types of blockchains (public, private, consortium), consensus protocols, and their effect on scalability, security, and economic accessibility. The main takeaway is that public blockchains are very transparent but have scalability issues, whereas private and consortium blockchains are more scalable but less decentralized. The system gets more intelligent and smarter with the integration of AI and IOT. Although regulatory and interoperability challenges are being worked out, blockchain could have a significant impact on the industrial energy grid. the article closes with a discussion about how blockchain as part of a wider digital transformation could lead to ultimately more autonomously run and sustainable energy system.