Decentralized On-Demand Energy Supply for Blockchain in Internet of Things: A Microgrids Approach

Abstract

Currently, blockchain technology has been widely used due to its support of transaction trust and security in next generation society. Using Internet of Things (IoT) to mine makes blockchain more ubiquitous and decentralized, which has become a main development trend of blockchain. However, the limited resources of existing IoT cannot satisfy the high requirements of on-demand energy consumption in the mining process through a decentralized way. To address this, we propose a decentralized on-demand energy supply approach based on microgrids to provide decentralized on-demand energy for mining in IoT devices. First, energy supply architecture is proposed to satisfy different energy demands of miners in response to different consensus protocols. Then, we formulate the energy allocation as a Stackelberg game and adapt backward induction to achieve an optimal profit strategy for both microgrids and miners in IoT. The simulation results show the fairness and incentive of the proposed approach.