Blockchain Enabled Reserved Pricing and Privacy Preserving Model for Peer-to-Peer Energy Trading in Smart Grid

This paper presents a novel framework for privacy-preserving, fair, and efficient peer-to-peer (P2P) energy trading within smart grids. The proposed approach introduces an auction-based dynamic pricing mechanism combined with a proportional energy allocation policy to ensure balanced benefits for both buyers and sellers. The pricing model adapts in real-time based on supply-demand ratios to optimize costs and revenues while maintaining fairness. To safeguard sensitive user data, a blockchain-based decentralized transaction system (DTS) is developed using Ethereum smart contracts, <monospace xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">MetaMask</monospace>, and Ganache. This system enables secure energy transactions without compromising privacy. The model is validated with real and simulated datasets, demonstrating significant reductions in buyer energy bills by 12.7% compared to existing methods. The proposed solution effectively balances economic optimization with data privacy, making it a robust framework for future decentralized energy markets.