# State-Of-The-Art and Prospects for Peer-To-Peer Transaction-Based Energy System
## 7 Prospects of TE and Recommendation  
From the preceding discussion, the prospects of TE management, especially in smart MGs, are obvious. The recommendations made are based on the potentials, merits and demerits of the subtending techniques, algorithms and technologies contributing to a dynamic and sustainable TE management system and are given in this section. As seen in the previous sections, coordination and transaction management are required by actors trading and sharing energy. Prosumers therefore require a platform where they can actively engage to share or trade energy with one another. The proactive communication platform should be able to support real-time information exchange, should manage transactions among prosumers, should be scalable to accommodate an increasing number of prosumers and should manage the prosumers' energy profiles. In the following paragraphs, some recommendations on proactive prosumer energy trading platforms integrating both distributed and centralized control are provided. Figure 5 shows actors' interaction with the trading platform [105]. Figure 5: Actors’ interaction with the energy trading platform [105]. FPP: federated power plant;  
On the proactive prosumer trading platform, prosumers can list their energy profile including, energy generation capacity, location, quantity of energy to trade and the energy offer price. The location of energy generation is paramount as this would help in facilitating neighbourhood energy trading and minimise the environmental impact caused by energy loss due to long transmission distance. Energy offer price can be determined by each actor by solving a local optimization problem [7] to determine the equilibrium price to trade/buy energy as a function of the total cost of production/transportation including energy losses. For instance, each actor pursuing selfish or altruistic goals can model the optimum energy price as a non-cooperative game with each actor defining its objective function and different pricing strategies to optimize profit. Subsequently, each actor would register its details including some basic information on the platform after determining the energy offer price. The information is stored on the platform database, and non-sensitive information is published on the platform (including trading profile, trading position relative to others and energy location). After registering on the platform, a prosumer wanting to buy energy will enquire from the database energy listings and positions and can decide from whom to buy using different metrics. The metrics are not limited to distance, cost and reliability. A potential seller can be matched to a potential buyer by the platform using matching or an auction game. When a suitable provider is found, the buyer queries the platform for the provider details to establish direct communication with the seller. This implies that each actor is able to query the platform to locate/discover a suitable provider, but communication is directly between actors in a P2P fashion. To establish communication between the seller and the buyer, a cooperative game, e.g., a coalition game can be modelled, which will be subject to some defined objective function. Once a potential buyer has been matched to a potential supplier, the platform will handle the transaction management process. For instance, after a buyer communicates with a possible provider and both parties agree to the terms and conditions of trade, they trade energy directly. The platform will manage the transaction by applying an optimization model [69] to manage a dispute if one arises among the prosumers. The TE platform will also ensure that the energy gets to the buyer whilst the credit get to the seller. The optimization technique applied on the platform would determine the optimal power transmission path to reduce transmission loss [106]. Refer to Figure 6.  
The proposed transaction-based algorithm is summarized as follows:  
* Non-cooperative game models would be modelled for each actor to determine its energy offer and bid price.