Blockchain in energy: Overcoming barriers and harnessing opportunities for a decentralized future

Blockchain technology has emerged as a promising solution for the energy sector, offering enhanced security, transparency, and innovation. With its decentralized structure and integration with smart contracts, blockchain is seen as a transformative force by various stakeholders which includes but are not limited to governments, energy companies, startups, and researchers. It enables secure and transparent transactions within a distributed network, making it a compelling alternative to traditional databases. Blockchain’s potential to revolutionize energy systems is particularly evident in applications such as electric vehicle (EV) charging, decentralized energy markets, Internet of Things (IoT) integration, and peer-to-peer (P2P) energy trading. This paper provides a review of blockchain’s role in the energy industry, analyzing both the advantages and challenges inculcated in its adoption. Key benefits include secure data sharing, decentralized energy management and the creation of innovative business models. However, the technology also faces significant hurdles such as scalability, high energy consumption, and regulatory uncertainties. Blockchain technology is poised to transform the energy sector by improving decentralization, security, and transparency. By analyzing practical initiatives and technological advancements, this research identifies strategies to overcome current obstacles and pave the way for a decentralized energy future.