# 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)
The primary challenges include ensuring the efficiency and transparency of direct energy transfers between users without relying on third-party intermediaries. Additionally, the paper emphasizes the need for an effective buyer and seller matching service within the system. For this reason, the authors present a marketplace for energy trading that operates based on smart contracts on the blockchain named Joulin. The prototype of Joulin was created using the Ethereum blockchain and demonstrated its usability. The main findings suggest that it is possible to develop an easily expandable and dependable system with low transaction costs while maintaining usability, flexibility, and resilience. The Ethereum gas costs are minimal, and the response times are rapid, confirming the platform's usability. Additionally, the smart contracts according to the authors have undergone security testing to prevent potential external manipulations, ensuring their reliability. A double-chain blockchain model that offers a secure and automated system for electric energy trading within the local electricity market, without any need for intermediaries, is proposed by [PERSON] et al. [64]. This model is designed to provide an adequate level of security for all parties involved. The paper's primary challenges revolve around establishing a reliable and cyber-stable system for local P2P energy markets using blockchain technology. The challenges include ensuring the fairness of all transactions while maintaining the overall stability of the energy system. The paper aims to address security concerns, such as potential hacker attacks, by leveraging blockchain's decentralized and secure data management capabilities. According to the authors, distributed network blockchain technology can be employed to manage and meter electricity effectively in a distributed generation system. The implementation of such an electrical network is expected to enhance the system's dependability. [PERSON] in [39] highlights the necessity of ensuring the integrity and immutability of electricity trading records in market environments. He also emphasizes that current web technologies used in energy exchanges may not guarantee the permanent immutability of transaction data, as these systems can be vulnerable to administrative intervention and data manipulation. In this paper, a web-based platform is implemented that uses Ethereum smart contracts and blockchain technology to enable energy trading among multiple entities in a decentralized manner. The platform utilizes smart contracts to automate and execute energy transactions securely and transparently, without the need for intermediaries. It also allows users to track and monitor their energy consumption, as well as the energy they produce and sell back to the grid. Overall, the paper focuses on the business model and practical application of blockchain technology and smart contracts in the energy industry. A study conducted by [PERSON] et al. [42] focuses on the development of a new business model that uses blockchain technology and smart contracts to enable secure and decentralized energy trading among electric vehicles in a Vehicle to Grid (V2G) network. The challenges in this area include the need for a secure and tamper-proof transaction recording mechanism to facilitate trust in the trading process and protect against fraudulent activities. The paper proposes a novel approach that utilizes smart contracts to automate and execute energy transactions between electric vehicles and the grid, ensuring security and transparency without the need for intermediaries. It also demonstrates the feasibility and effectiveness of the proposed model through simulations and analyses. According to [PERSON] and [PERSON] [53], the use of blockchain smart contracts is becoming increasingly popular in the renewable energy sector due to their ability to address issues with traditional electricity hedging methods.