SoK: How Blockchain and Tokenization Will Transform the Energy Sector

Tokenization and blockchain technology might significantly improve the energy industry by making electricity production, transmission, and consumption more open, safe, and effective. Tokenization enables the establishment of digital assets that reflect ownership or access to energy resources and enables blockchain to trace the origin and flow of energy produced. By incorporating these elements, we can build a more distributed and egalitarian energy infrastructure and make it easier to use renewable energy. However, legal barriers, integration with current systems, and scalability remain obstacles to the widespread use of these technologies in the energy industry. Therefore, there is a need for more study and development before the energy industry can ultimately reap the benefits of blockchain and tokenization. Accordingly, in this work, we suggest a systematization of knowledge to capture recent development and summarize research in the blockchain domain and its application to the energy sector.