A Lightweight Blockchain-Based Cooperative Demand Response and Energy Trading Model for Smart Grid

Public blockchain networks have been used for peer-to-peer energy trading; however, most of these networks are inefficient. The power-intensive consensus algorithm, Proof-of-Work (PoW), is one of the reasons for power inefficiency. This article proposes a lightweight consensus algorithm for demand response and energy trading models to improve efficiency in the smart grid. A cooperative approach encompassing all energy entities is also necessary for demand response management strategies to be more efficient. In the proposed model, we redesign the Proof-of-Fit (PoF) consensus algorithm for a smaller number of message exchanges and computations. We also propose a service-based use of grid infrastructure for energy trading and exchange by all energy trading entities in a cooperative approach while free energy price negotiation is exercised. The simulation results show that the redesigned consensus algorithm, Energy-Proof-Fit, reduces the average number of message broadcasts required to complete a consensus by 35 percent. Furthermore, the peak-to-average ratio of peak hour demand is reduced in the proposed model.