Decentralizing Energy Storage Monitoring: A Blockchain-Enabled Solution for Enhanced Transparency and Security

Abstract

Energy storage systems (ESS) are becoming more and more necessary to maintain grid stability and supply-demand balance as a result of the quick adoption of renewable energy sources. Centralized monitoring systems for ESS, however, present a number of difficulties, such as the possibility of data manipulation, a lack of transparency, security flaws, and inefficiencies in energy exchanges. In order to improve operational efficiency, security, and transparency, this study suggests a decentralized energy storage monitoring system that makes use of blockchain technology. The suggested method makes use of smart contracts and blockchain's immutable ledger to build an energy storage monitoring system that is impenetrable and untrustworthy. The solution allows for safe, automatic energy data collection and verification by combining blockchain technology with edge computing and real-time Internet of Things (IoT) sensors. Autonomous energy transactions are made possible by smart contracts, which also provide equitable pricing procedures and lessen dependency on middlemen. By removing single points of failure, the decentralized design also improves cybersecurity by reducing threats like data breaches, cyberattacks, and unauthorized access. Furthermore, a consensus mechanism like Proof of Authority (PoA) or Proof of Stake (PoS) is introduced by the blockchain-based system to confirm transactions effectively without the high computational costs of Proof of Work (PoW). This preserves scalability while guaranteeing low-latency, real-time data validation. Additionally, the use of tokenized incentives motivates energy producers and consumers to actively engage in peer-to-peer energy trading and grid balancing.