Redefining Transactions, Trust, and Transparency in the Energy Market from Blockchain-Driven Technology

Abstract

Rapid depletion of fossil fuel reserves forces the global energy sector to transition to sustainable energy sources. Specifically, distributed energy markets have emerged in the renewable energy sector in recent years, partly because blockchain technology is becoming a successful way to promote secure and transparent transactions. Using its decentralized structure, transparency, and even pseudonymity, blockchain is increasingly adopted worldwide for large-scale energy trading, peer-to-peer exchanges, project financing, supply chain management, and asset tracking. The research comprehensively analyzes blockchain applications across multiple fields related to energy, bibliographically evaluating their transformative potential. In addition, the study explores the architecture of various blockchain systems, assesses critical security and privacy challenges, and discusses how blockchain can enhance operational efficiency, transparency, and reliability in the energy sector. The paper’s findings provide a roadmap for future developments and the strategic adoption of blockchain technologies in the evolving energy landscape for an effective energy transition.