Concept and Implementation of Blockchain Demonstration Unit Within the Smart Grid

Modern energy technologies can provide a new way to energy supply. There is no need to be dependent on central power plants. Everybody can install his/her own renewable energy system and start producing energy. Consumers become producers and send excess energy to the electrical grid. A whole electrical grid becomes more reliable and efficient. However, the energy exchange process requires the third party that can regulate the process. Currently, they are utilities. In addition, they are not providing the best conditions for regulating the energy process. Moreover, customers stay dependent from them and cannot use all the potential of renewable energy sources. In this paper, we have proposed a blockchain based decentralized system for energy regulations and exchange. This system aims at avoiding the issues with dependency on central authorities, improving the efficiency of renewable sources. In addition, important questions are privacy and security. Because this system is classified as a Cyber-Physical system, other types of issues arise.