# The Potential of Blockchain Technology and Smart Contracts in the Energy Sector: A Review
## 3 Research Methodology and Literature Classification
### Literature Classification
#### 3.2.2 Energy Management and Operations (EMnO)
The main objective of a work by [PERSON] et al. [29] is to gain profound comprehension of the consensus mechanism within the energy industry along with enhancing the progress of intelligent grid management systems. There is also skepticism about the usefulness of thecurrent consensus mechanism in terms of its ability to meet the requirements in the domain. At the same time, the authors provide guidelines for the development of security standards, the normalization of the smart contract code, the improvement of data encryption at the network layer, and the authentication mechanisms for user authentication. FederatedGrids is introduced by [PERSON] et al. [61] as a platform that combines federated learning and blockchain technology to enable P2P energy trading and sharing. The platform establishes a collaborative setting that ensures all participants in different microgrids are satisfied with their involvement. This paper highlights the issues of consumers lacking funds to buy energy and the costly energy storage management by prosumers, which can discourage participation. Additionally, the authors discuss the need for robust security and privacy features in P2P energy trading systems, emphasizing that prosumers and consumers are reluctant to adopt technologies that do not guarantee these aspects. Future work on the project involves elaborating on the mechanism for incentivizing energy sharing and conducting a comprehensive evaluation of the entire energy trading and sharing system, with a specific emphasis on safeguarding the privacy of all participants. [PERSON] et al. [62] tackle critical challenges, including the necessity for accurate and automated billing and payment processes, the bidirectional exchange of data, the enhancement of energy awareness, and the seamless interoperability of blockchain technology within existing smart metering infrastructure. According to the authors, digital technologies, along with smart meters, have the potential to enhance energy efficiency and facilitate new services like real-time pricing, energy usage awareness, and boost smart contracts task automation. However, along with the implementation of smart meters and related digital technologies, privacy concerns arise as well. It is also reported that blockchain and smart contracts can be used to improve the security and privacy of residential energy customers. [PERSON], in [26], describes the challenges associated with designing and implementing smart contracts on blockchain platforms, focusing on permissioned blockchains like Hyperledger Fabric, R3 Corda, and Quorum. These blockchains have limitations in terms of hardcoded verification rules within smart contracts, which hinder flexibility, reconfigurability, and the ability to reuse rules across contracts. To overcome these challenges, he introduces a new design pattern for creating smart contracts that are resilient and robust. This pattern is platform-independent and implemented in Java programming language. It enables greater source code reusability and facilitates testing. By reusing verification rules, the pattern simplifies the process of updating smart contracts. The author demonstrated that the pattern is suitable for extending smart contracts and adapting them to evolving business requirements. The pattern can also simplify the process of creating smart contracts for distributed applications that facilitate collaboration among communities of renewable energy producers and consumers. According to [PERSON] et al. [35], the use of smart contracts can enable the creation of decentralized electricity markets that are highly independent. Additionally, smart contracts can facilitate seamless and dependable transaction settlement. However, there may be vulnerabilities and excessive gas consumption within Ethereum-based smart contracts used for electricity markets, but they can be detected and resolved with appropriate measures such as improving the design and implementation of smart contracts, optimizing gas usage, and conducting comprehensive security testing.