Towards the decentralized revolution in energy systems using blockchain technology

Micro and decentralized generation of electrical power is an emerging trend in the power industry. Blockchain technology allows decentralized and instant monetary and contractual transactions to occur over peer to peer private and public networks by satisfying cyber security concerns. Both changes have the potential to enable paradigm shift in the field of energy in the coming years. Decentralization in the energy business makes this sector a good playground for blockchain technology. As of now, energy applications of blockchain technology are in conceptual and early stage prototyping levels. This paper aims to present a comprehensive review of P2P energy trading related blockchain technology applications and proposes a comprehensive multi-layer energy model architecture for the peer to peer (P2P) energy trading implementations where the use of blockchain technology is integrated. P2P energy trading allows consumers to become prosumers of electricity in a more efficient, trustable, and profitable way. Furthermore, this study demonstrates an Ethereum based blockchain testbed exhibiting blockchain concepts and how they can be used in the field of P2P energy trading within a commodity microgrid using a sample use-case scenario.