# 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)
A study conducted by [PERSON] et al. [44] suggests that a blockchain-based communication infrastructure, using Ethereum as the underlying network, can be employed to safeguard the communication between different entities within a smart grid. To achieve this, smart contracts can be utilized to validate the authenticity of each smart meter and ensure secure and private reporting of the readings. However, challenges in terms of scalability and cost need to be addressed. It is experimentally proven that the cost is not determined by the size of the network, but rather by the complexity of the transaction. The transaction fees are associated with the operations involved in each transaction. As the operations become more complex, the transaction costs increase. According to [PERSON] et al. [49], the challenges in securing smart grids have become crucial components of modern electrical networks. The integration of smart grid technology, while promising greater reliability and efficiency, also introduces vulnerabilities in terms of cybersecurity. The primary issues revolve around weaknesses in cybersecurity, potential power outages, theft of electricity, and privacy breaches for energy consumers. Furthermore, smart grids are a popular solution for integrating distributed energy sources and ensuring the safety and security of power supply networks. One technology that can enhance the security of smart grids is blockchain. Blockchain technology provides secure, decentralized, and democratized system for information storage and dissemination across various industry sectors. The authors introduce a new distributed framework that enhances the self-defense capabilities of smart grids by adopting blockchain technology to protect energy systems against cyber-attacks. An approach that involves utilizing the Ethereum blockchain platform in conjunction with the current conventional infrastructure to monitor and examine energy supply chain operations is suggested by [63]. However, several issues need to be addressed. The first one involves integrating blockchain into government organizations and ensuring the secure and efficient transfer of data. Additionally, the need to maintain a balance between centralized and decentralized processes for cybersecurity and data safety is a significant challenge. Finally, concerns about data security and the development of tools for transferring database services to the blockchain are key obstacles. They also report that smart contracts can be utilized to document activities securely and make them accessible to stakeholders in accordance with established protocols and best practices. According to the authors, through a DApp, it is possible to rapidly connect the existing energy supply industry at multiple geographical locations to monitor and trace related data in the energy market. Some benefits are the monitoring of supply chains by regulators and the improvement of fair competition between companies. Also, the application of blockchain technology can help government agencies to monitor and track invoices transparently.