The Transition Toward Merging Big Data Analytics, IoT, and Artificial Intelligence with Blockchain in Transactive Energy Markets

Abstract

Blockchain is a special technology for peer-to-peer (P2P) trading platforms, which uses decentralized storage to record all transaction data. Blockchain was first used in 2009 in the infrastructure of the financial sector of the Bitcoin cryptocurrency. Recently, further applications have evolved in this area to provide decentralized transaction storage by employing innovative mechanisms that enable decentralized operation. This mechanism is called a smart contract that operates based on individually defined rules (e.g., quality, quantity, and price specifications) that enable an independent matching of market players at the distribution level on the supplier side and their potential customers and end-users as well as prosumers. In this article, in addition to introducing the concept of Blockchain, the way this cutting-edge technology deals with different agents in the energy sector and markets and its impact on the operation performance of the electricity and energy industry have been examined. Thus, merging other emerging technologies and platforms, such as big data analysis, the Internet of Things (IoT), and artificial intelligence (AI) with Blockchain, can solve many practical open challenges in smart electrical grids and the energy domain. This article delves into the impacts of integrating these platforms to boost the interoperability between different components and enhance the liquidity of markets.