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Data Privacy Challenges of Blockchain Energy Systems
Abstract
In recent years, blockchain has made waves in the energy sector due to its decentralised, transparent, and immutable nature. On the other hand, the resulting breadth of blockchain applications in the autonomous operations and management of transactive energy systems has raised profound legal-related challenges, risks, and caveats. Data privacy breaches in blockchain energy landscapes present a considerable conundrum as they go to the root of societal values and human rights. The growing concerns prompt pessimism such that energy market participants are less inclined to engage in blockchain-enabled peer-to-peer energy trading. The author explores diverse data protection issues associated with permissioned and permissionless blockchain energy applications and speculate on how they may contribute to economic and social disruptions. Such exploration is beneficial as rising tensions will likely stagnate blockchain energy operationalisation and global diffusion. An earnest and effective dialogue of data protection challenges is necessary to fill the regulatory void.
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