# The Potential of Blockchain Technology and Smart Contracts in the Energy Sector: A Review
## 3 Research Methodology and Literature Classification
### Literature Classification
#### 3.2.3 Business Models and Applications (BMnA)
In response, ET-DeaL is a system that leverages blockchain technology, particularly Ethereum, to optimize security and privacy in P2P energy transactions within Smart Grids. ET-DeaL distinguishes itself by storing its ET data on a distributed off-chain IPFS database, thereby improving data access efficiency. Additionally, it employs smart contracts to manage permissions and roles for different entities within the energy transfer process. Ensuring interoperability between entities in remotely located Smart Grids is facilitated by utilizing a public Ethereum blockchain. According to [PERSON] and [PERSON] [41], the utilization of blockchain technology has the potential to enable direct exchange of energy among peers within microgrids, bypassing the need for intermediaries. With the assistance of Solidity, smart contracts can be established for facilitating P2P energy trading. The adoption of blockchain technology in the energy industry can aid in resolving challenges associated with energy trading in microgrids. Within the context of this paper, the challenges addressed include transitioning from a centralized to a decentralized power system, managing the volatility of renewable energy sources, reducing losses in microgrid power generation, and ensuring efficient utilization of renewables. Additionally, the paper emphasizes the importance of secure and efficient energy trading and highlights the technical, regulatory, and operational hurdles that must be overcome during this transition. A structure for energy trading of electric vehicles within the context of smart cities that relies on blockchain technology is suggested by [PERSON] et al. in [46]. Specifically, the architecture involves a trading platform that uses smart contracts and operates on a private Ethereum network. The authors' trials have demonstrated that the implementation of Ethereum is capable of accommodating charging demands from electric vehicles, even during periods of high demand in densely populated urban areas. The major issues addressed in this paper revolve around enabling efficient P2P energy trading for Electric Vehicle (EV) charging using blockchain technology. These challenges include maintaining security and trust in a decentralized environment, despite the associated high storage footprint, computational overhead, and communication requirements. The work of [PERSON] et al. [47] focuses on addressing challenges related to the coordination of transactions and assets within VPPs, particularly in the context of a transition from a small number of large assets to a large number of small assets within VPPs. The primary challenge is enabling P2P transactions among asset owners and stakeholders within VPPs using EaaS business models. The paper specifically tackles the scenario where multiple picogrids participate as asset owners in a VPP. Notably, there is limited prior research available on the topic of EaaS within VPPs, making this a novel area of exploration. The authors claim that the use of smart contracts has the potential to enable EaaS in VPPs. Inorder to develop a simulation environment for contract formation, the authors introduce a new strategy based on evolutionary computing. The strategy was compared to other methods such as random order, random selection, and profit-based ranking, and was found to be effective for coordinating the formation of contracts. In conclusion, the article recommends exploring demand side flexibility, enhancing the transparency of energy flows, and utilizing various heuristic techniques. [PERSON] et al. [48] introduced a blockchain-based transaction model for VPPs that anticipates the future energy internet's reliance on real-time electricity prices. This innovative model leverages smart contracts to enable distributed energy trading within VPPs, providing real-time visibility into supply and demand dynamics, thereby facilitating two-way selection under conditions of information symmetry as distributed energy resources integrate seamlessly into the energy grid.