# 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 category \"Business models and applications\" explores new ways of doing business in the energy sector using emerging technologies and innovative ideas. The most important subcategories identified in this category are:  
* P2P energy trading: Explores the idea of allowing energy consumers to trade electricity with each other without the intervention of a traditional utility company. * Virtual Power Plants (VPP): Refers to a system where multiple small-scale energy sources, such as solar panels or wind turbines, are aggregated and managed as a single entity to provide grid services and sell energy in wholesale markets. * Energy as a Service (EaaS): Explores the concept of energy as a service, whereby customers enjoy increased flexibility and are charged on a pay-as-you-go basis, rather than owning the energy production infrastructure. The challenges addressed in [27] involve transitioning from an aging centralized power grid to a more distributed and complex network that includes prosumers actively contributing to energy production. The authors explore the need to adapt to real-time energy supply and demand, considering intermittent renewable energy sources. It also discusses the formation of microgrids as local energy markets and their role in achieving sustainability and resilience, both in terms of grid management and cybersecurity. More specifically, the authors examine how blockchain technologies and auction mechanisms can be utilized to enable autonomous P2P energy trading in microgrids. Two frameworks are devised and contrasted by utilizing a dataset from the real world. The outcomes indicate that a P2P trading platform that merges blockchain technologies and agent-based systems has the potential to supplement the existing centralized energy grid. As arises from the article, both the independent microgrid and the centralized national grid should work in conjunction with each other to promote a more eco-friendly and cost-effective energy market. Blockchain technology and smart contracts have the potential to establish a distributed energy trading platform, which allows prosumers to exchange their surplus energy without mediators. In [28], the authors introduce a blockchain and smart contract-based trading platform that addresses various challenges in the energy sector. This platform offers transparency, affordability, and self-sufficiency to both prosumers and consumers situated at the grid's edge. By leveraging distributed renewable energy-based generators, the platform promotes sustainability and emphasizes the significance of long-term energy security. The paper aims to tackle these challenges and presents a decentralized energy trading platform that not only benefits energy users but also contributes to a more reliable and efficient energy ecosystem. In response to the challenges in the energy sector, [PERSON] et al. [29], introduce a Peer-to-Peer Electricity Blockchain Trading (P2 PEBT) system that leverages existing charging and discharging protocols for electric vehicles (EVs) within the smart grid. To address issues of grid stability and incentivize demand response, the authors integrate Proof-of-Benefit (PoB) consensus mechanisms into this blockchain system. Their work aims to achieve a reduction in power fluctuation and eliminate the reliance on third-party intermediaries while promoting transparent and stable electricity trading. In the demanding context of India's energy sector, which faces significant challenges such as limited grid connectivity in remote areas, blockchain-based solutions like a DApp offer promising prospects, as suggested by [PERSON] and [PERSON] in [31]. The proposed solution securely documents the ownership and usage of solar energy through IoT devices. These solutions have the potential to incentivize utility providers and investors through mechanisms like carbon credits and renewable energy certificates, thus addressing the issue of attracting investments for green initiatives.