A Blockchain-Based Architecture for Energy Trading to Enhance Power Grid Stability

The integration of renewable energy sources (RES) and distributed energy resources (DER) into local energy markets is transforming modern power grids toward a decentralized architecture. To enhance the efficiency of decentralized energy trading, blockchain technology has been widely adopted in constructing peer-to-peer energy trading platforms, providing incentives for renewable energy generation and utilization. However, the rapid growth of small-scale suppliers and intermittent DERs introduces significant challenges to grid stability, including supply–demand imbalances and voltage fluctuations. To address these challenges, we propose a blockchain-based energy trading system architecture designed to enable a self-regulating, sustainable, and resilient grid. The proposed system architecture achieves grid stability through three key components: (i) precise endpoint control via AI Agents with lightweight forecasting models integrated into existing hardware systems, (ii) flexible distributed control through an efficient incentive mechanism, named Proof of Prediction, based on a blockchain-based automated trading process, and (iii) macro-level coordination via global regulation roles. We implemented a prototype of the proposed architecture on the Ethereum Blockchain and applied it to a microgrid-scale distributed automated trading environment. Our evaluation results show that using the architecture we proposed achieves a peak-shaving rate of up to 29.6%, while maintaining the overall supply–demand deviation of around 5% on average, demonstrating its strong potential as a foundation for building stable and modern power grids.