International Research Journal of Engineering and Technology (IRJET)
e-ISSN: 2395-0056
Volume: 13 Issue: 01 | Jan 2026
p-ISSN: 2395-0072
www.irjet.net
Blockchain-Based Fully Peer-to-Peer Energy Trading Platform for Residential Energy Systems Kammari Ram Charan Chary1, B. Ashwini2, B. Sanjay Kumar3, A. Nithin Kumar Reddy4 1,2,3,4Department of Information Technology, TKR College of Engineering and Technology, Telangana, India
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Abstract - The rapid growth of renewable energy resources
often lack transparency, involve high operational costs, and provide limited flexibility for small-scale energy producers. Moreover, centralized control introduces single points of failure and reduces user trust in pricing and settlement processes. As a result, there is a growing need for decentralized solutions that allow direct energy trading among residential users in a secure and transparent manner.
has increased the participation of residential users as both energy producers and consumers. However, traditional energy trading systems rely on centralized intermediaries, leading to reduced transparency, higher operational costs, and limited flexibility for small-scale energy producers. This paper proposes a blockchain-based fully peer-to-peer energy trading platform designed for residential energy systems. The proposed system enables direct energy trading between users without the involvement of third-party intermediaries by leveraging the decentralized nature of blockchain technology. Energy units are represented as digital tokens using the ERC20 standard, and smart contracts are deployed on the Ethereum Sepolia test network to automate listing creation, pricing, transaction execution, and settlement. A web-based interface integrated with a backend service allows users to interact with the blockchain securely through wallet authentication. This ensures transparency, immutability, and trust by recording all transactions on the blockchain while maintaining performance through off-chain data management. Experimental evaluation demonstrates the feasibility of the proposed platform in terms of transaction execution, gas cost efficiency, and system reliability. The results indicate that blockchain-based peer-to-peer energy trading can serve as an effective solution for decentralized residential energy markets, with potential scalability for future smart grid integration.
Blockchain technology has emerged as a promising solution to address these challenges. As a decentralized and immutable ledger, blockchain enables trustless transactions without relying on centralized authorities. Through the use of smart contracts, blockchain systems can automate transaction execution, enforce predefined rules, and ensure tamper-proof record keeping. These features make blockchain an ideal platform for implementing peer-to-peer energy trading systems that emphasize transparency, security, and efficiency. This paper proposes a blockchain-based fully peer-to-peer energy trading platform designed specifically for residential energy systems. The proposed system allows users to trade surplus energy directly with other users using digital energy tokens. Smart contracts deployed on the Ethereum blockchain automate the entire trading workflow, including energy listing creation, pricing, transaction validation, and settlement. By eliminating intermediaries, the platform reduces operational overhead and empowers residential prosumers to actively participate in energy markets.
Key Words: Blockchain, Peer-to-Peer Energy Trading, Smart Contracts, Ethereum, Renewable Energy, ERC-20 Token, Decentralized Applications.
1.1 Blockchain-Based Peer-to-Peer Energy Trading Peer-to-peer energy trading refers to a decentralized model in which energy producers and consumers interact directly without centralized control. In residential environments, this model enables households with surplus energy generation to sell excess energy to neighbouring consumers at mutually agreed prices. Blockchain technology plays a critical role in enabling this decentralized approach by providing a secure, transparent, and distributed transaction infrastructure.
1. INTRODUCTION The global energy sector is undergoing a significant transformation due to the rapid adoption of renewable energy resources such as solar and wind power. Advances in distributed generation technologies have enabled residential users to generate their own electricity, leading to the emergence of prosumers who can both produce and consume energy. While this shift promotes sustainability, it also introduces new challenges related to energy distribution, pricing, and management within traditional power systems.
In blockchain-based energy trading systems, smart contracts act as autonomous agents that manage trading logic. These contracts automatically execute transactions when predefined conditions are met, ensuring fairness and eliminating manual intervention. Additionally, blockchain records all transactions in an immutable ledger, allowing
Conventional energy trading mechanisms are predominantly centralized and controlled by utility providers or third-party intermediaries. These centralized systems
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