Energy as a Commodity: A Decentralized Application for Peer-to-Peer Energy Trading

Abstract

The existing electrical grid in the United States is inefficient, unreliable, and prone to disruption. Faced with a changing climate and electrification of the energy sector, we must adopt an alternative economic and infrastructural model that incentivizes investment in renewable energy technology. We argue that decentralization of the grid is necessary to secure our nation’s energy system and protect the environment. The decentralized application for peer-to-peer energy trading outlined in this paper helps communities leverage their distributed energy resources to balance supply and demand by creating a market for individuals to buy and sell electricity within a microgrid. Building our platform on the Ethereum blockchain guarantees the security of transactions and protects users’ identities. This project presents an innovative and practical solution to the future of clean energy by pursuing decentralization of the electrical grid.