A Hybrid Blockchain Consensus Algorithm Using Locational Marginal Pricing for Energy Applications

Abstract : Blockchain technology has recently witnessed a rapid proliferation across multiple industries and has the potential to evolve as a popular energy transaction platform for grid operators and general users. The current proof-of-work consensus algorithm used by many blockchain protocols suffer from vulnerabilities such as the majority attacks problem and strip mining. The algorithm often requires specialized application-specific hardware and involves energy-intensive computation, making it an unlikely candidate for power grid applications. On the other hand, the proof-of-stake consensus algorithm is susceptible to the well-known nothing-at-stake vulnerability issue, making it equally unlikely to be used in large-scale secured energy transactions. An energy-efficient locational marginal pricing-based hybrid proof-of-work, proof-of-stake consensus algorithm is proposed to mitigate such risks. The hybrid consensus algorithm uses an optimized market-based energy pricing model to select the mining and forging nodes. A detailed framework of the hybrid consensus algorithm is provided, along with an overview of its potential application to record large volumes of energy transactions and execute obligatory smart-contract agreements.

 EXISTING SYSTEM :

 ? Consensus process, where an existing stake in the distributed ledger system (e.g., the amount of that currency that you hold) is used to reach consensus. ? Special transaction nodes that aggregate the outgoing transactions in the single block and are responsible for the validation process. ? They compete amongst each other to solve the cryptographic problem and gain the right to add the formatted block in the existing ledger of blockchain transactions. ? Validator nodes are known as miners and play the most important role in the whole blockchain process: they compete one another to solve the cryptographic problem and gain the right to add the formatted block in the existing ledger of blockchain transactions.

 DISADVANTAGE :

 ? The problem of congestion of the transmission network is considered as one of the most important issues in the discussion of the full implementation of the restructuring of power systems. ? The problem of transmission network conjunction has always been one of the serious obstacles against the full implementation of the restructuring of power systems, the correct and free communication of the producers and consumers, and the main challenge of independent system operation. ? To solve the DC optimal power flow (DCOPF) problem, equations have been used in the generalized algebra modeling system (GAMS) program. ? The optimization of this issue is the amount of production of each generator (G) and the local limit price in all network buses.

 PROPOSED SYSTEM :

 • The consensus mechanism on the other hand, is a process by which, nodes in a distributed network agree on proposed transactions. • We propose a two-phase algorithm minimizing the cost of generation and thermal losses by rescheduling users’ shapeable loads and DERs ahead of time. • When someone wants to add a record to a blockchain, also called a transaction or an entry, users in the network who have validation control verify the proposed transaction. • Several approaches are proposed to enhance the speed and scalability of the blockchain process like shading, sidechains, utilization of payment channels and parallel processing. • This method is also proposed to minimize the energy wastage during the blockchain process.

 ADVANTAGE :

 ? In, a blockchain with seven components based on MG energy market was offered and a smart contract was used to make a high-performance information system on the basis of the blockchain strategy. ? The Data Layer contains data perceived through large-scale sensors such as product type and product quantity, device performance status, and other data of several parameters. ? The outcomes of simulation on a trial system confirmed the great effectiveness and performance of the considered policy frame, particularly in the presence of a cyber-attack where the information is not available for outside unwarranted parts of the system. ? Blockchain can also be used to improve social welfare and provide sustainable energy for consumers.