Blockchain‐Based Peer‐to‐Peer Energy Trading: Design and Implementation of the Tokenized Decentralized Energy Management System (DEMS)

ABSTRACT Traditional energy markets are hindered by centralization, high transaction costs, and the systemic exclusion of small‐scale prosumers. While blockchain‐based peer‐to‐peer (P2P) energy trading platforms offer a decentralized alternative, most suffer from scalability bottlenecks, volatile transaction fees, and poor regulatory alignment—limiting real‐world deployment. To bridge this gap, we propose decentralized energy management system (DEMS): a decentralized energy management system built on a permissioned Hyperledger Besu network with IBFT 2.0 consensus, ERC‐20‐compliant ENRTokens, and a hybrid Web2/Web3 authentication layer. DEMS enables secure, transparent, and regulation‐aware P2P energy trading within positive energy districts (PEDs). Evaluated on a 4‐node consortium and scaled to 50 nodes via Hyperledger Caliper, the system achieves 5–7 transactions per second (TPS) with sub‐2‐second finality and predictable operational costs. Unlike public Ethereum or DAG‐based alternatives, DEMS supports complex smart contract logic while ensuring GDPR‐compliant data handling, role‐based access control and auditability. This work contributes a novel, regulation‐oriented architecture that integrates energy tokenization with real‐world policy constraints, laying the groundwork for scalable, AI‐enhanced decentralized energy markets.