This paper presents control relationships between the low voltage distribution grid and flexibilities in a peer-to-peer local energy community using a stratified control strategy. With the increase in a diverse set of distributed energy resources and the next generation of loads such as electric storage, vehicles and heat pumps, it is paramount to maintain them optimally to guarantee grid security and supply continuity. Local energy communities are being introduced and gaining traction in recent years to drive the local production, distribution, consumption and trading of energy. The control scheme presented in this paper involves a stratified controller with grid and flexibility layers. The grid controller consists of a three-phase unbalanced optimal power flow using the holomorphic embedding load flow method wrapped around a genetic algorithm and various flexibility controllers, using three-phase unbalanced model predictive control. The control scheme generates active and reactive power set-points at points of common couplings where flexibilities are connected. The grid controller’s optimal power flow can introduce additional grid support functionalities to further increase grid stability. Flexibility controllers are recommended to actively track the obtained set-points from the grid controller, to ensure system-level optimization. Blockchain enables this control scheme by providing appropriate data exchange between the layers. This scheme is applied to a real low voltage rural grid in Austria, and the result analysis is presented.