# 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)
This research underlines the transformative potential of blockchain technology in enhancing energy market efficiency, transparency, and adaptability to evolving energy landscapes, offering insights into the challenges of integrating blockchain into China's ongoing electricity marketization reform. The study of [PERSON] et al. [51] addresses several challenges in the existing integrated energy market and its application of blockchain technology. These challenges include the need to establish a credible and independent cloud service platform to replace intermediary functions and support expanding carbon trading markets. It also highlights concerns related to quantifying and accurately categorizing different types of energy loads, as well as issues with existing integrated energy markets' ability to meet evolving demands. The paper further underscores the practical problems and limitations of previous blockchain-based energy trading systems, such as high costs, centralized bidding, and conceptual-level analysis. To overcome these challenges, a cloud service platform for an integrated energy market is proposed by the authors. The platform employs blockchain smart contracts to ensure the security and convenience of energy trading. It is designed by Antchain ([[https://www.antchain.net](https://www.antchain.net)]([https://www.antchain.net](https://www.antchain.net)), accessed on 30 November 2023) and can simulate the energy trading and dispatch process of the cloud service platform. The simulation results demonstrate that the platform, based on the blockchain smart contract, can achieve efficient and intelligent energy dispatch, in addition to providing a secure and convenient energy trading environment. Another energy trading platform is proposed in the study of [55]. It is a P2P platform that includes essential features such as energy transfer, metering, and money transfer to facilitate energy trading. The proposed system is developed entirely using open-source software and is designed to cater to the needs of prosumers and offers economic benefits to all participants involved in the trading process. The challenges addressed in this paper revolve around the development of an IoT-based energy trading platform integrated with blockchain technology. They concern the creation of a decentralized and secure system that enables P2P energy trading while utilizing cryptocurrency incentives. The platform seeks to overcome challenges related to reducing reliance on intermediaries in energy trading and establishing a transparent and flexible pricing mechanism through negotiations between peers. According to [PERSON] et al. [57], the utilization of smart contracts ensures secure transactions between two parties in a P2P network, which are validated by the contract's self-operating logic structure without introducing any weaknesses in the system. The paper confronts several challenges associated with the integration of blockchain technology into the evolving model of P2P energy trading. These challenges encompass the optimization of blockchain-based P2P trading systems to reconcile the blockchain trilemma, encompassing security, decentralization, and scalability, while considering transaction fees and public network conditions. Another notable challenge pertains to ensuring the energy efficiency of blockchain transactions. The paper underscores the necessity to address issues associated with managing sudden changes in energy markets and grid operations, especially in the context of renewable resources. The research presents a software platform with a user interface that includes an instrument panel and offers prices based on the supply-demandrelationship. The objective of the study is to advance decentralization by integrating renewable energy sources within a P2P trading framework enabled by blockchain technology. In a study conducted by [PERSON] et al. [58], blockchain technology is also proposed as a fitting option for P2P energy trading.