How blockchain could improve fraud detection in power distribution grid

Abstract

Power utilities experience large losses of electricity in distribution from power plants to the end consumer. There are two types of losses: technical and non-technical. Among non-technical losses is a very prominent one: electrical fraud. In this paper we propose a new system to detect fraud. A blockchain is used to store the data collected by the WSN that monitors the power distribution grid. Using data stored in the blockchain, it is constructed directed directed acyclic graph (DAG) with non-technical losses and applied the clustering algorithm created to detect fraud. The main advantage of blockchain to our model is that every time the blockchain grows the stored data is more secure. Therefore, power utilities can perform an inspection in blockchain data stored.