Analysis and Application of Verifiable Computation Techniques in Blockchain Systems for the Energy Sector

Abstract

The energy system is becoming increasingly decentralized. This development requires integrating and coordinating a rising number of actors and small units in a complex system. Blockchain could provide a base infrastructure for new tools and platforms that address these tasks in various aspects—ranging from dispatch optimization or dynamic load adaption to (local) market mechanisms. Many of these applications are currently in development and subject to research projects. In decentralized energy markets especially, the optimized allocation of energy products demands complex computation. Combining these with distributed ledger technologies leads to bottlenecks and challenges regarding privacy requirements and performance due to limited storage and computational resources. Verifiable computation techniques promise a solution to these issues. This paper presents an overview of verifiable computation technologies, including trusted oracles, zkSNARKs, and multi-party computation. We further analyze their application in blockchain environments with a focus on energy-related applications. Applied to a distinct optimization problem of renewable energy certificates, we have evaluated these solution approaches and finally demonstrate an implementation of a Simplex-Optimization using zkSNARKs as a case study. We conclude with an assessment of the applicability of the described verifiable computation techniques and address limitations for large-scale deployment, followed by an outlook on current development trends.

Missing Links: Current Trends and Future Potential in the Application of Blockchain Oracles

“…This trend continues when looking into academia, where privacy and reliability are paramount, for example, when storing academic credentials and transcripts on-chain [72]. Beyond this, examples of value-adding applications have been identified in IoT integrations [86], real estate [87], and beyond. The following chapter will take a closer look at some of the functionalities mentioned that are enabled by oracle protocols.…”

“…The following chapter will take a closer look at some of the functionalities mentioned that are enabled by oracle protocols. Verifiable oracle data feeds, multiparty computation, and zero-knowledge proofs have been identified as crucial elements in hypothetical blockchain-based applications [86].…”

Overview of Blockchain Oracle Research

“…Antal et al [131] proposed an energy flexibility token to incentivize renewable energy production at the local level. Zeiselmair et al [132] implemented a decentralized oracle system and zkSNARKs to improve renewable energy certificate allocation. Lastly, Weixian et al [133] investigated efficient oracle designs to guarantee secure and unforgeable data transmission between actors involved in the energy market.…”

Blockchain-Based Gas Auctioning Coupled with a Novel Economic Dispatch Formulation for Gas-Deficient Thermal Plants

“…However, most real-world blockchain applications involve the use of off-chain data that are sourced from traditionally centralized entities, which undermines the advantages of decentralization. The lack of trust from such sources inhibits the full realization of many potential blockchain use cases [25]. These sources of off-chain data have been termed "oracles".…”