Blockchain Interoperability in Decentralized Energy Systems: A Performance Comparison of On-Chain and Cross-Chain Transactions in Cosmos-Based Microgrids

Abstract

Blockchain interoperability is critical for decentralized peer-to-peer energy trading in interconnected microgrids, yet the performance trade-offs of single-chain versus multi-chain architectures remain poorly understood. This study evaluates the feasibility and efficiency of Cosmos-based blockchain setups for energy transactions, comparing on-chain execution with cross-chain transfers using the Hermes relayer. Through experimental simulations with synthetic energy data, cross-chain transactions demonstrated a 24% increase in gas costs compared to on-chain operations. However, absolute costs remained low, suggesting practical viability despite overheads. These findings highlight a trade-off: multi-chain architectures enable decentralized flexibility across microgrids at modest operational costs, though scalability and security require further optimization. The study provides a foundational framework for evaluating blockchain interoperability in energy systems, underscoring the need for future work integrating real-world datasets and heterogeneous blockchain ecosystems to advance resilient, decentralized energy markets.