The increasing integration of decentralized energy sources in microgrids has prompted the need for efficient and secure mechanisms to facilitate energy transactions. Blockchain emerges as most promising solution to address the problems associated with trust, transparency, and coordination in decentralized energy systems. This research paper explores the uses of blockchain in microgrids to enable decentralized energy transactions. The proposed framework leverages smart contracts to automate and validate energy transactions, ensuring a transparent and tamper-resistant record of energy flow. Through the use of a decentralized ledger, participants in the microgrid can securely and autonomously engage in energy transactions, fostering a more resilient and efficient energy ecosystem. The study also addresses key considerations such as scalability, privacy, and consensus mechanisms to enhance the practicality of implementing blockchain in microgrid environments. The findings contribute to the growing body of knowledge on decentralized energy systems, showcasing the potential of blockchain to revolutionize the way energy is produced, consumed, and traded within microgrids.