Application of Blockchain Technologies for Creating Decentralized Energy Markets in Smart Cities
Abstract
This paper examines the application of blockchain technologies in creating decentralized energy markets for smart cities. Through comparative and inductive analysis of existing literature and industry reports, we explore how blockchain-based systems can address inefficiencies in centralized energy distribution and facilitate peer-to-peer energy trading. Key findings include the potential for smart contracts to automate energy transactions, tokenization of energy assets to enable microtransactions, and blockchain-based certification of renewable energy sources. We propose strategies for developing prosumer ecosystems and integrating distributed energy resources into decentralized markets. While blockchain-powered energy markets show promise for improving efficiency and sustainability, challenges in scalability and regulatory adaptation remain. This research highlights blockchain as a critical tool for transforming urban energy systems and fostering innovation in the energy sector through decentralized market mechanisms.