Security Challenges in the Application of Blockchain Technology in Energy Trading
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Abstract
This paper examines the interplay between blockchain technology and the energy sector, focusing on security limits, barriers, and challenges. The authors discusses the primary components of cyber risks, including threats, vulnerabilities, and impacts that plague blockchain systems and their application, network, and data layers. Further, anonymity is a key feature of blockchain, ensuring that blockchain users, nodes, and miners remain unidentifiable by any measure. Therefore, perpetrator-focused measures are not viable when assigning responsibility for dangerous and illegal conduct. There are concerns that the concealment of identity will broaden blockchain attack surfaces and pose risks to energy security. The authors also emphasises the need for a well-defined and consistent legal and regulatory framework to address the complexities of blockchain development in the energy sector and assert that the maturity of blockchain in this industry will depend on balancing security and user rights and suggest implementing ex-ante and ex-post measures. This paper is novel; the author seeks to provide an in-depth analysis of the security challenges faced by blockchain-based energy applications and offer practical solutions for mitigating these cybersecurity threats and vulnerabilities.
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