With　the　maturity　of　renewable　energy　generation　technology　and　the　reduction　of　installation　and　operation　costs,　the　distributed　generation　have　been　rapidly　developed,　and　a　large　number　of　electricity　prosumers　have　been　generated.　However,　due　to　the　characteristics　of　small　capacity,　high　volatility　and　scattered　distribution,　the　distributed　generation　is　not　suitable　for　participating　in　the　existing　electricity　market.　Combined　with　the　research　of　foreign　electricity　retail　market　and　the　current　distributed　generation　trading　situation　in　China,　this　paper　proposes　a　decentralized　electricity　market　(DEM)　mode　at　the　level　of　distribution　network.　The　framework　design　of　DEM　is　carried　out　from　the　aspects　of　market　definition,　participants,　trading　methods,　time　scale　and　clearing　methods.　Aiming　at　the　problem　that　the　DEM　trading　platform　is　difficult　to　establish,　this　paper　studies　the　feasibility　and　transaction　realization　process　of　blockchain　technology　applied　in　DEM.　Finally,　from　the　perspectives　of　policies,　regulations　and　key　points　of　market　construction,　the　issues　to　be　paid　attention　to　in　the　construction　of　DEM　are　analyzed.　©　2020　Automation　of　Electric　Power　Systems　Press.