Tokenizing Electricity Consumption Using IoT and Blockchain

DOI

https://www.doi.org/10.59256/ijrtmr.20260603003

Published In

Volume 6, Issue 3 (2026)

Published Online

May-June 2026

Pages

25-33

Article Type

Original Article

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This work investigates the integration of IoT with blockchain technology as a centerpiece in modernizing electric power systems. Traditional approaches to electricity management are increasingly bound by the proliferation of distributed energy resources, inefficiencies, and security vulnerabilities. In response, smart grids are being developed to incorporate advanced digital technologies that enhance resilience and responsiveness of energy networks. IoT devices, including smart meters and sensors, provide granular, real-time data necessary for modern grid management, while blockchain provides a decentralized, secure, and transparent environment to handle energy transactions. The integration discussed here enables novel P2P energy markets and allows consumers to function as active participants-or "prosumers"-by tokenizing electricity consumption or converting physical energy units into digital assets on a blockchain. This paper reviews existing architectures, consensus mechanisms, and real-world implementations utilizing this paradigm. Diverse models are analyzed, from DeFi-based trading platforms to privacy-preserving consortium blockchains. The survey concludes with discussions evaluating the main challenges to wider adoption, including scalability, regulatory considerations, and interoperability. Finally, the study points to main directions for future research, like the development of hybrid architectures and energy-efficient consensus algorithms, to surmount these barriers and realize the full potential of tokenized energy systems. Keywords—Blockchain, Hyperledger Fabric, Tokenization, Internet of Things, Electricity, Green Finance, Energy Trading.