Privacy and Transparency in Blockchain-Based Smart Grid Operations

Abstract

In the past few years, blockchain technology has emerged in numerous smart grid applications, enabling the construction of systems without the need for a trusted third party. Blockchain offers transparency, traceability, and accountability, which lets various energy management system functionalities be executed through smart contracts, such as monitoring, consumption analysis, and intelligent energy adaptation. Nevertheless, revealing sensitive energy consumption information could render users vulnerable to digital and physical assaults. This paper presents a novel method for achieving a dual balance between privacy and transparency, as well as accountability and verifiability. This equilibrium requires the incorporation of cryptographic tools like Secure Multiparty Computation and Verifiable Secret Sharing within the distributed components of a multi-channel blockchain and its associated smart contracts. We corroborate the suggested architecture throughout the entire process of a Demand Response scenario, from the collection of energy data to the ultimate reward. To address our proposal's constraints, we present countermeasures against accidental crashes and Byzantine behavior while ensuring that the solution remains appropriate for low-performance IoT devices.