Performance Analysis of IOTA Tangle and a New Consensus Algorithm for Smart Grids

Blockchain is an effective technology that enables secure data sharing and trusted energy trading in smart grids (SGs). The consensus algorithm plays a key role in the blockchain’s security and consistency. However, due to nonconcurrency, long consensus time, low throughput, and high transaction fees, current consensus algorithms are not suitable for SGs, where there is a large-scale distributed wireless field area network (FAN) with limited resources and frequent small transactions. In this article, we propose a performance analysis model and a new consensus algorithm for the tangle in the FAN. First, we propose an analytical analysis model for the consensus time and probability of a successful parasitic chain attack on the FAN by comprehensively considering the number of data transmission hops, communication protocols, computing resources, and checked tips. Furthermore, based on the analysis, a new consensus algorithm is proposed by clustering nodes cooperating with each other to complete the Proof of Work (PoW). Finally, we show the accuracy of the analysis results by comparing them with the simulation results. Additionally, we show that the proposed consensus algorithm can reduce the required consensus time by approximately 50%.