# Can Blockchain Strengthen the Energy Internet?
## 1 Introduction  
The concept of smart grids emanated with the adoption of Internet of Things (IoT) devices and technologies, such as Internet connected advanced sensors and smart meters in electricity grids [1, 2]. This facilitated bi-directional information flow to achieve near real-time grid operations while incorporating dynamic electricity pricing and effective Demand Response (DR) mechanisms [3]. Meanwhile, the energy requirement of the world is expected to grow continuously [4]. Catering to this requirement demands an increasing number of grid interconnections of Distributed Energy Resources (DER) contributing synergistically with one another. However, conventional smart grids, which are governed by a centralized authority, are not capable of facilitating this requirement. This urges the need for a more scalable, flexible and distributed grid architecture [4]. In response to this demand, the next iteration of the conventional smart grids, Smart Grid 2.0 (identified as the Energy Internet (EI) in this paper), is being realized to establish bi-directional energy and information transfer. This uses the electricity grid infrastructure and Internet Protocol (IP) based features of the Internet respectively [5]. This includes Distributed Network Protocol (DNP3) for maximizing the utilization of DERs and Transmission Control Protocol (TCP) based protocols, such as, IPv6 over Low-Power wireless Personal Area Networks (6 LowPAN), to facilitate communication between compact, inexpensive, low-power, embedded devices and IEEE 802.15.4 networks. This is to enhance security features of the existing smart grids. Furthermore, EI facilitates real-time information exchange including energy usage data, dynamic pricing information and control signals through such implementations. IoT devices, including smart meters and sensors, communicate real-time measurement data of the large-scale participation of the Distributed Generation (DG) [6]. This is envisaged to facilitate autonomous operation of energy grids, benefiting seamless integration of DG without the involvement of a third party compared to the conventional counterpart. Implementation of EI grids is proposed as an overlay of four layers:namely, physical layer, communication and control layer, application layer and data analysis layer [5]. The former two are comprised of IoT devices and beyond 5G communication technologies, enabled through edge computing respectively. The latter two layers of the novel architecture incorporate the applications of the envisaged EI grid and data analysis technologies supported through big data management [7]. Applications of EI span beyond offering dynamic energy prices to the consumers and obtaining their contribution in DR initiatives. They also exhibit prospects in multi-dimensional aspects, including: (1) Peer-to-Peer (P2P) energy trading; (2) plug-and-play interfacing for DERs; (3) microgeneration; (4) Demand Side Integration (DSI); (5) automation and management of distribution networks; and (6) management of energy data. Figure 1 illustrates the interrelationship of these applications. Thus, EI grid architecture facilitates the paradigm shift from the monopoly vertical hierarchy towards a decentralized network configuration with bi-directional energy and information exchange across the grid and internet respectively. A comparison elaborating the significant differences of the conventional and next generation smart grids is presented in Table 1.  
Together with these applications, EI envisages autonomous grid operation where the central authority governing the grid under the current context will be overlooked [4]. Further, this would be protruding as consumers begin to gain liberalization in the energy market and actively participate in power production. Human intervention in the decision-making process will be automated through smart contracts, facilitated by Artificial Intelligence (AI) and Machine Learning (ML) algorithms.