Consortium Blockchain for Secure Energy Trading in Industrial Internet of Things

Abstract

In Industrial Internet of Things (IIoT), Peer-to-Peer (P2P) energy trading ubiquitously takes place in various scenarios, e.g., microgrids, energy harvesting networks, and vehicle-togrid networks. However, there are common security and privacy challenges caused by untrusted and nontransparent energy markets in these scenarios. To address the security challenges, we exploit the consortium blockchain technology to propose a secure energy trading system named energy blockchain. This energy blockchain can be widely used in general scenarios of P2P energy trading getting rid of a trusted intermediary. Besides, to reduce the transaction limitation resulted from transaction confirmation delays on the energy blockchain, we propose a credit-based payment scheme to support fast and frequent energy trading. An optimal pricing strategy using Stackelberg game for credit-based loans is also proposed. Security analysis and numerical results based on a real dataset illustrate that the proposed energy blockchain and credit-based payment scheme are secure and efficient in IIoT.

An overview on smart contracts: Challenges, advances and platforms

“…For example, if the seller does not sign the transaction, he/she will not get the funds from the buyer. Moreover, Li et al [122] proposed a secure energy trading system based on consortium blockchain technology. In particular, a credit-based payment scheme was proposed to support fast energy trading without a trusted intermediary.…”

A Journey in Applying Blockchain for Cyberphysical Systems

“…This has led to the emergence of energy trading where prosumers can sell their excess energy to other prosumers or consumers. a) Challenges: Current energy trading paradigms rely on using the energy company or another trusted third party to act as broker between the seller and buyer of energy [27]. This centralises interactions, influence, and more importantly trust at the broker, and typically delivers sub-optimal returns to prosumers, due to fees and constraints placed by the broker.…”

Blockchain‐based security aspects in heterogeneous Internet‐of‐Things networks: A survey

“…This has encouraged governments to accelerate the paradigm shift from centralization to a more decentralized, distributed energy resource management, which helps decrease the risk of terrorist attacks. BC is capable of getting rid of these intermediaries and enable faster and frequent P2P energy trading . There are many other use cases of BC in the energy sector.…”

“…BC is capable of getting rid of these intermediaries and enable faster and frequent P2P energy trading. 88 There are many other use cases of BC in the energy sector. One use case is the optimization and management of the electricity supply by using BC.…”