Security and Privacy in Decentralized Energy Trading Through Multi-Signatures, Blockchain and Anonymous Messaging Streams
TL;DR: This paper has implemented a proof-of-concept for decentralized energy trading system using blockchain technology, multi-signatures, and anonymous encrypted messaging streams, enabling peers to anonymously negotiate energy prices and securely perform trading transactions.
Abstract: Smart grids equipped with bi-directional communication flow are expected to provide more sophisticated consumption monitoring and energy trading. However, the issues related to the security and privacy of consumption and trading data present serious challenges. In this paper we address the problem of providing transaction security in decentralized smart grid energy trading without reliance on trusted third parties. We have implemented a proof-of-concept for decentralized energy trading system using blockchain technology, multi-signatures, and anonymous encrypted messaging streams, enabling peers to anonymously negotiate energy prices and securely perform trading transactions. We conducted case studies to perform security analysis and performance evaluation within the context of the elicited security and privacy requirements.
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TL;DR: In this paper, the authors present the concept of a blockchain-based microgrid energy market without the need for central intermediaries, where consumers and prosumers can trade self-produced energy in a peer-to-peer fashion.
1,010 citations
TL;DR: Numerical results indicate that the double auction mechanism can achieve social welfare maximization while protecting privacy of the PHEVs and security analysis shows that the proposed PETCON improves transaction security and privacy protection.
Abstract: We propose a localized peer-to-peer (P2P) electricity trading model for locally buying and selling electricity among plug-in hybrid electric vehicles (PHEVs) in smart grids Unlike traditional schemes, which transport electricity over long distances and through complex electricity transportation meshes, our proposed model achieves demand response by providing incentives to discharging PHEVs to balance local electricity demand out of their own self-interests However, since transaction security and privacy protection issues present serious challenges, we explore a promising consortium blockchain technology to improve transaction security without reliance on a trusted third party A localized P 2P E lectricity T rading system with CO nsortium blockchai N (PETCON) method is proposed to illustrate detailed operations of localized P2P electricity trading Moreover, the electricity pricing and the amount of traded electricity among PHEVs are solved by an iterative double auction mechanism to maximize social welfare in this electricity trading Security analysis shows that our proposed PETCON improves transaction security and privacy protection Numerical results based on a real map of Texas indicate that the double auction mechanism can achieve social welfare maximization while protecting privacy of the PHEVs
933 citations
TL;DR: This work exploits the consortium blockchain technology to propose a secure energy trading system named energy blockchain, which can be widely used in general scenarios of P2P energy trading getting rid of a trusted intermediary and a credit-based payment scheme to support fast and frequent energy trading.
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-to-grid 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.
778 citations
Cites background or methods from "Security and Privacy in Decentraliz..."
...[11] utilized a blockchain with multisignatures to solve transaction security problems in decentralized smart grids....
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...Therefore, it is important to design a unified and secure energy trading system for various energy trading scenarios in IIoT [11]....
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TL;DR: This paper provides a systematic vision of the organization of the blockchain networks, a comprehensive survey of the emerging applications of blockchain networks in a broad area of telecommunication, and discusses several open issues in the protocol design for blockchain consensus.
Abstract: The past decade has witnessed the rapid evolution in blockchain technologies, which has attracted tremendous interests from both the research communities and industries. The blockchain network was originated from the Internet financial sector as a decentralized, immutable ledger system for transactional data ordering. Nowadays, it is envisioned as a powerful backbone/framework for decentralized data processing and data-driven self-organization in flat, open-access networks. In particular, the plausible characteristics of decentralization, immutability, and self-organization are primarily owing to the unique decentralized consensus mechanisms introduced by blockchain networks. This survey is motivated by the lack of a comprehensive literature review on the development of decentralized consensus mechanisms in blockchain networks. In this paper, we provide a systematic vision of the organization of blockchain networks. By emphasizing the unique characteristics of decentralized consensus in blockchain networks, our in-depth review of the state-of-the-art consensus protocols is focused on both the perspective of distributed consensus system design and the perspective of incentive mechanism design. From a game-theoretic point of view, we also provide a thorough review of the strategy adopted for self-organization by the individual nodes in the blockchain backbone networks. Consequently, we provide a comprehensive survey of the emerging applications of blockchain networks in a broad area of telecommunication. We highlight our special interest in how the consensus mechanisms impact these applications. Finally, we discuss several open issues in the protocol design for blockchain consensus and the related potential research directions.
680 citations
Cites methods from "Security and Privacy in Decentraliz..."
... [211]. In the context of IoTs, blockchain-based infrastructure is also envisioned as a promising alternative of the centralized one for data management, trading automation and privacy protection. In [212], the authors introduce the micro-payment channels (see also Section VI-A) based on a Bitcoin-like blockchain to conduct energy trading in a decentralized smart grid without relying on trusted third p...
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TL;DR: An in-depth survey of BCoT is presented and the insights of this new paradigm are discussed and the open research directions in this promising area are outlined.
Abstract: Internet of Things (IoT) is reshaping the incumbent industry to smart industry featured with data-driven decision-making. However, intrinsic features of IoT result in a number of challenges, such as decentralization, poor interoperability, privacy, and security vulnerabilities. Blockchain technology brings the opportunities in addressing the challenges of IoT. In this paper, we investigate the integration of blockchain technology with IoT. We name such synthesis of blockchain and IoT as blockchain of things (BCoT). This paper presents an in-depth survey of BCoT and discusses the insights of this new paradigm. In particular, we first briefly introduce IoT and discuss the challenges of IoT. Then, we give an overview of blockchain technology. We next concentrate on introducing the convergence of blockchain and IoT and presenting the proposal of BCoT architecture. We further discuss the issues about using blockchain for fifth generation beyond in IoT as well as industrial applications of BCoT. Finally, we outline the open research directions in this promising area.
654 citations
References
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15 Jan 2020
4,407 citations
"Security and Privacy in Decentraliz..." refers background or methods in this paper
...Bitcoin system adopts cryptographic proof-of-work along with nested chain of hashed secrets to eliminate need of trusted third party providing security and privacy when an agent trades with complete strangers [2]....
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...To validate the authenticity of a transaction, PriWatt (like Bitcoin) uses Elliptic Curve Digital Signature Algorithm (ECDSA) asymmetric cryptography [2]....
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04 Nov 2010
TL;DR: The method described in this paper provides a 3rd party escrow mechanism for authenticated anonymous meter readings which are difficult to associate with a particular smart meter or customer.
Abstract: The security and privacy of future smart grid and smart metering networks is important to their rollout and eventual acceptance by the public: research in this area is ongoing and smart meter users will need to be reassured that their data is secure. This paper describes a method for securely anonymizing frequent (for example, every few minutes) electrical metering data sent by a smart meter. Although such frequent metering data may be required by a utility or electrical energy distribution network for operational reasons, this data may not necessarily need to be attributable to a specific smart meter or consumer. It does, however, need to be securely attributable to a specific location (e.g. a group of houses or apartments) within the electricity distribution network. The method described in this paper provides a 3rd party escrow mechanism for authenticated anonymous meter readings which are difficult to associate with a particular smart meter or customer. This method does not preclude the provision of attributable metering data that is required for other purposes such as billing, account management or marketing research purposes.
632 citations
"Security and Privacy in Decentraliz..." refers background in this paper
...Efthymiou and Kalogridis [26] discuss a secure mechanism which allows to anonymize readings sent by a smart meter....
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TL;DR: In this paper, the effectiveness of providing paper-based energy-use/saving information with electronic feedback of energy-consumption via smart meters and displays, or "energyconsumption indicators" (ECI) is reviewed.
590 citations
"Security and Privacy in Decentraliz..." refers background in this paper
...2) Lack of privacy and anonymity: Following Wood’s behavioral modeling of electricity consumption profiling approach [1], a centralized middleman may reveal patterns of an agent’s energy generation and predict the agent’s daily activities....
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01 Apr 2013
TL;DR: This research examines the use of pseudonymity in the Bitcoin network, and the role that it plays in the development of trust and confidence in the system.
Abstract: Bitcoin is quickly emerging as a popular digital payment system. However, in spite of its reliance on pseudonyms, Bitcoin raises a number of privacy concerns due to the fact that all of the transactions that take place are publicly announced in the system.
569 citations
02 Nov 2010
TL;DR: It is shown that even without a priori knowledge of household activities or prior training, it is possible to extract complex usage patterns from smart meter data using off-the-shelf statistical methods.
Abstract: Household smart meters that measure power consumption in real-time at fine granularities are the foundation of a future smart electricity grid. However, the widespread deployment of smart meters has serious privacy implications since they inadvertently leak detailed information about household activities. In this paper, we show that even without a priori knowledge of household activities or prior training, it is possible to extract complex usage patterns from smart meter data using off-the-shelf statistical methods. Our analysis uses two months of data from three homes, which we instrumented to log aggregate household power consumption every second. With the data from our small-scale deployment, we demonstrate the potential for power consumption patterns to reveal a range of information, such as how many people are in the home, sleeping routines, eating routines, etc. We then sketch out the design of a privacy-enhancing smart meter architecture that allows an electric utility to achieve its net metering goals without compromising the privacy of its customers.
550 citations
"Security and Privacy in Decentraliz..." refers background in this paper
...[27] propose a system that allows a smart meter to report its billing whiteout reporting its usage....
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