Towards the Applications of Blockchain in Distribution Networks: A Brief Review

Authors

  • Mohammad Parhamfar Independent Researcher and complex problem solver, Isfahan, Iran
  • Shaghayegh Shojaei Independent Researcher, Urmia, Iran
  • Alireza Hajarkesht Independent Researcher, Karaj, Iran
  • Anna Pinnarelli Department of Mechanical Energy and Management Engineering (DIMEG), University of Calabria (CS), Rende, Italy
  • Alireza Soleimani Department of Mechanical Energy and Management Engineering (DIMEG), University of Calabria (CS), Rende, Italy

DOI:

https://doi.org/10.25729/esr.2025.02.0002

Keywords:

Blockchain, Distributed Energy Networks, Virtual Power Plants (VPPs), Peer-to-Peer Energy Trading, Decentralized Energy Management

Abstract

Modern energy systems are undergoing rapid changes, primarily driven by the rise of distributed energy resources (DERs) and microgrids, which enable decentralized power generation. Sophisticated management systems must be implemented as this transformation attempts to deliver safe, dependable, and efficient energy distribution. Blockchain technology offers a practical solution by enabling decentralized, transparent, and secure energy transfers. Because data cannot be altered or removed once entered into the blockchain, blockchain ensures transparency and confidence in energy exchanges through irreversible transactions. This study investigates the integration of blockchain technology into distribution networks, focusing on its application in peer-to-peer energy trading, microgrid management, and virtual power plants. An in-depth examination of blockchain applications in global marketplaces highlights important companies, regulatory environments, and technological advancements. As demonstrated in the study, energy management based on blockchain technology can optimize energy distribution, guarantee transparent financial transactions, and improve grid stability. To achieve its full potential, blockchain must address problems with scalability, regulatory compliance, and interoperability. This study also investigates how blockchain technology can be smoothly incorporated into distributed energy networks to enhance security, efficiency, and decentralization while resolving significant transaction processing and energy management challenges.

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