Peer-to-peer electricity trading system: smart contracts based proof-of-benefit consensus protocol

Abstract

Abstract Nowadays, people trade electricity through centralized companies or organizations which is vulnerable to cyber attacks and incapable of coping with increasing demands from stakeholders. In this paper, we propose a new Peer-to-Peer Electricity Blockchain Trading (P2PEBT) system based on the current charging and discharging schemes for electric vehicles (EV) in the smart grid to enable users to participate in the trading process. In order to cope with the current situation of the high volume of EV integration, the proof-of-Benefit (PoB) consensus primitives are proposed for P2PEBT to achieve demand response by providing incentives to balance local electricity demand in the novel blockchain system. PoB is implemented by executing the smart contracts on the Ethereum platform, and the process of achieving the maximal benefits is completed by submitting the transaction in the decentralized network. Security analysis shows that the P2PEBT system is able to manage a potential protection against up to a number of attacks. We demonstrate that the proposed system using the PoB consensus mechanism can achieve lower power fluctuation without requiring a third-party intermediary.