Smart grid

The integration of blockchain technology and the electric grid makes the grid smart and decentralized. The adoption of blockchain technology allows the grid network to decentralize its operations. This means there is no need for a central authority in the smart grid to control, distribute, and manage the electricity. The decision making and transaction flow in the smart grid do not need to be transmitted through the centralized system. All the transactions and operations performed on the grid network are stored on the public ledgers of a blockchain. The buying and selling energy transactions across the network can be done through a computer program by validating and verifying the pre-determined clauses of the transaction. So, blockchain technology helps in setting up real-time energy markets and identity preserving transactions at much lower costs. In this chapter, we have described the role and benefits of blockchain technology in the smart grid in terms of energy management and demand-supply management.