AI-Powered Secure Decentralized Energy Transactions in Smart Grids: Enhancing Security and Efficiency

Decentralized energy transactions in smart grids are gaining momentum as a solution to the challenges posed by traditional centralized energy systems. This paper presents an AI-powered approach to enhancing the smart grid's energy transactions' efficiency and security. Building upon the principles of decentralization and artificial intelligence (AI), the method leverages block chain technology and advanced AI algorithms to optimize energy distribution while ensuring robust security measures. The existing centralized energy systems face significant vulnerabilities, including single points of failure and susceptibility to cyberattacks. In contrast, decentralized energy transactions facilitated by block chain technology distribute transaction records across multiple nodes, mitigating the risk of manipulation and enhancing system resilience. The proposed method integrates AI algorithms to analyse diverse data sources, such as energy consumption patterns and grid performance metrics, enabling real-time optimization of energy distribution. By dynamically adjusting energy allocation based on predictive analytics, the system minimizes wastage and reduces transmission losses, thereby improving overall efficiency. The security of energy transactions is fortified through cryptographic measures provided by block chain technology. Smart contracts automate and enforce transaction rules, eliminating the requirement for middlemen and lowering the possibility of fraud. Furthermore, the decentralized nature of the approach fosters transparency and accountability, as all transactions are recorded on a transparent ledger visible to all participants. This transparency enhances trust among stakeholders and facilitates incorporating renewable energy sources and distributed energy resources into the grid. Overall, the AI-powered secure decentralized energy transaction framework offers a promising pathway towards a more resilient, efficient, and sustainable energy infrastructure for smart grids.