Blockchain-Based Clean Energy Trading: Security Architecture and Operational Risk Mitigation in Decentralized Energy Markets

Abstract

Traditional clean energy trading systems faces severe inefficiencies due to lengthy centralized clearing cycles, which lead to exorbitant administrative friction and intermediary fees. Centralized clearing houses are highly vulnerable to technical outages, data tampering, and manual delays, creating catastrophic operational risks. Furthermore, micro-producers face insurmountable hurdles entering mainstream grid trading. This research explores the integration of blockchain in clean energy trading, focusing on security architecture and operational risk mitigation in decentralized energy markets. We propose a novel architecture bridging the Ethereum Mainnet and IoT Smart Meters, which act as hardware Oracles to objectively verify physical power delivery. To solve the primary problem of high-frequency, micro-denomination trading bottlenecks, the system utilizes ZK-Rollups as a Layer 2 solution. By enforcing automated settlement through smart contracts, the model completely strips away intermediary trust costs and slashes overall clearing costs. Ultimately, this framework not only eradicates operational risks but also transforms individual profit-seeking behavior into systemic robustness.