Incorporating price information in Blockchain-based energy trading
- Islam, Ezazul, Chetty, Madhu, Lim, Suryani, Chadhar, Mehmood, Islam, Syed
- Authors: Islam, Ezazul , Chetty, Madhu , Lim, Suryani , Chadhar, Mehmood , Islam, Syed
- Date: 2022
- Type: Text , Conference proceedings
- Relation: SIG SAND -Systems Analysis and Design, 2022; Minneapolis; August 10th-14th, 2022 in AMCIS 2022 Proceedings. 6.
- Full Text: false
- Reviewed:
- Description: Blockchain-based peer-to-peer (P2P) ecosystem is well suited for distributed energy trading as it is inherently decentralised. In a distributed energy trading, an auctioneer passes unspent reservations to the next auctioneer, as dictated by the passing mechanism. However, traditional P2P energy trading systems used passing mechanisms that only partially consider the auction capability of the next auctioneer. We propose iPass, which incorporates price information when passing unspent auction reservations in P2P energy trading environment. The three performance metrics applied to measure the trading efficiency are (a) auction convergence time, (b) the number of auction settlements, and (c) the economic surplus of buyers and sellers. We simulated the proposed mechanism in Hyperledger Fabric, a permissioned blockchain framework. Hyperledger Fabric manages the data storage and smart contracts. Experiments show iPass is more efficient compared to existing passing mechanisms.
A blockchain-based distributed peer-to-peer ecosystem for energy trading
- Authors: Islam, Mohammad
- Date: 2024
- Type: Text , Thesis , PhD
- Full Text:
- Description: Blockchain technologies are revolutionising peer-to-peer (P2P) distributed energy trading. These technologies can leverage microgrid decentralisation and immutable data storage to provide efficient and secure trading to benefit prosumers. A double auction mechanism is best suited for energy trading in a P2P microgrid. This mechanism requires a solvent cryptocurrency reserve for payment settlement. Double auctions give rise to unspent auction reservations (UARs). Existing mechanisms can settle further auctions with UARs but need improvements to do this without affecting trading efficiency. Keeping a cryptocurrency reserve solvent also requires adaptations to existing mechanisms. Auction settlements within a microgrid leave UARs, meaning that other microgrids must join for further auction settlements, and this leads to security vulnerabilities. It is important to develop an ecosystem that can enhance trading efficiency, ensure the solvency of the cryptocurrency reserve and provide security for multi-microgrid energy trading. In distributed energy trading, an auctioneer passes UARs to the next auctioneer as specified by the passing mechanism. Traditional energy trading systems use simple passing mechanisms and basic pricing mechanisms, but this adversely affects trading efficiency and buyers’ economic surplus. Traditional P2P energy trading systems use passing mechanisms that only partially consider the auction capacity of the next auctioneer. We propose a blockchain-based energy trading mechanism using a smart passing mechanism (SPM) that uses an unspent reservation profile (URP) to represent the auctioneers’ capability to pass UARs within a P2P microgrid. We further propose an intelligent passing mechanism (iPass) that incorporates price information into URPs to enhance trading efficiency. We applied three metrics to measure trading efficiency: convergence time, auction settlements and the economic surplus of buyers and sellers. We simulated our mechanisms in Hyperledger Fabric, a permissioned blockchain framework that managed the data storage and smart contracts. Experiments showed that our SPM reduces the convergence time, increases auction settlements and increases the economic surplus of buyers compared with existing mechanisms. Experiments showed that iPass is even more efficient than other passing mechanisms, including SPM, further reducing the convergence time, increasing auction settlements and increasing the economic surplus of buyers and sellers. Settling payments in blockchain-based P2P energy trading requires maintaining the solvency of the cryptocurrency reserve to ensure a stable medium of exchange and reduce price volatility. Stablecoins, as a form of cryptocurrency—the most suitable medium of exchange—are gaining attention from central banks. A consortium of central banks has recommended compliance with capital and liquidity standards for high-quality liquid assets (HQLA). Stablecoins, as a form of HQLA, require the adaptation of these standards for P2P energy trading. We propose a mechanism (NF90) to control the inflow of stablecoins in response to the liquidity coverage ratio (LCR) for reserve resilience and to maintain solvency. The Basel III Accord recommends 100% LCR. We measured the effectiveness of NF90 using LCR as a metric simulating the mechanism in Hyperledger Fabric to manage deceni tralisation, data storage and smart contracts. NF90 was the most effective inflow control mechanism. The use of iPass for a P2P microgrid leaves UARs. Traditional trading mechanisms settle further auctions with UARs within a microgrid, which affects the economic surplus of prosumers. Auction settlements with neighbouring microgrids increase prosumers’ economic surplus, but the usual pricing of double auction mechanisms reduces their economic surplus. Other pricing mechanisms are needed in a multi-microgrid paradigm. Settling auctions for microgrids requires common computational resources that are close to microgrids. Edge computing technologies suit this need, and blockchain technology leverages immutable data storage in cloud servers. However, communication with a cloud server through proprietary edge computing devices exposes the ecosystem to security vulnerabilities. It is important to control access by prosumers and forensic users. Immutable data storage and the retrieval of data are essential. Two challenges in information security are incorporating reliable access control for users and devices while granting access to confidential data for relevant users and maintaining data persistence. This research used a blockchain structure for data persistence. We propose a framework of novel protocols to authenticate users (prosumers and auctioneers) by the edge server and of the edge server by the cloud server. Our framework also provides access to forensic users using immutable blockchain-based data storage with endpoint authentication and a role-based user access control system. We simulated the framework using the Automated Validation of Internet Security Protocols and Applications and showed that it can deal effectively with several security issues.
- Description: Doctor of Philosophy
- Authors: Islam, Mohammad
- Date: 2024
- Type: Text , Thesis , PhD
- Full Text:
- Description: Blockchain technologies are revolutionising peer-to-peer (P2P) distributed energy trading. These technologies can leverage microgrid decentralisation and immutable data storage to provide efficient and secure trading to benefit prosumers. A double auction mechanism is best suited for energy trading in a P2P microgrid. This mechanism requires a solvent cryptocurrency reserve for payment settlement. Double auctions give rise to unspent auction reservations (UARs). Existing mechanisms can settle further auctions with UARs but need improvements to do this without affecting trading efficiency. Keeping a cryptocurrency reserve solvent also requires adaptations to existing mechanisms. Auction settlements within a microgrid leave UARs, meaning that other microgrids must join for further auction settlements, and this leads to security vulnerabilities. It is important to develop an ecosystem that can enhance trading efficiency, ensure the solvency of the cryptocurrency reserve and provide security for multi-microgrid energy trading. In distributed energy trading, an auctioneer passes UARs to the next auctioneer as specified by the passing mechanism. Traditional energy trading systems use simple passing mechanisms and basic pricing mechanisms, but this adversely affects trading efficiency and buyers’ economic surplus. Traditional P2P energy trading systems use passing mechanisms that only partially consider the auction capacity of the next auctioneer. We propose a blockchain-based energy trading mechanism using a smart passing mechanism (SPM) that uses an unspent reservation profile (URP) to represent the auctioneers’ capability to pass UARs within a P2P microgrid. We further propose an intelligent passing mechanism (iPass) that incorporates price information into URPs to enhance trading efficiency. We applied three metrics to measure trading efficiency: convergence time, auction settlements and the economic surplus of buyers and sellers. We simulated our mechanisms in Hyperledger Fabric, a permissioned blockchain framework that managed the data storage and smart contracts. Experiments showed that our SPM reduces the convergence time, increases auction settlements and increases the economic surplus of buyers compared with existing mechanisms. Experiments showed that iPass is even more efficient than other passing mechanisms, including SPM, further reducing the convergence time, increasing auction settlements and increasing the economic surplus of buyers and sellers. Settling payments in blockchain-based P2P energy trading requires maintaining the solvency of the cryptocurrency reserve to ensure a stable medium of exchange and reduce price volatility. Stablecoins, as a form of cryptocurrency—the most suitable medium of exchange—are gaining attention from central banks. A consortium of central banks has recommended compliance with capital and liquidity standards for high-quality liquid assets (HQLA). Stablecoins, as a form of HQLA, require the adaptation of these standards for P2P energy trading. We propose a mechanism (NF90) to control the inflow of stablecoins in response to the liquidity coverage ratio (LCR) for reserve resilience and to maintain solvency. The Basel III Accord recommends 100% LCR. We measured the effectiveness of NF90 using LCR as a metric simulating the mechanism in Hyperledger Fabric to manage deceni tralisation, data storage and smart contracts. NF90 was the most effective inflow control mechanism. The use of iPass for a P2P microgrid leaves UARs. Traditional trading mechanisms settle further auctions with UARs within a microgrid, which affects the economic surplus of prosumers. Auction settlements with neighbouring microgrids increase prosumers’ economic surplus, but the usual pricing of double auction mechanisms reduces their economic surplus. Other pricing mechanisms are needed in a multi-microgrid paradigm. Settling auctions for microgrids requires common computational resources that are close to microgrids. Edge computing technologies suit this need, and blockchain technology leverages immutable data storage in cloud servers. However, communication with a cloud server through proprietary edge computing devices exposes the ecosystem to security vulnerabilities. It is important to control access by prosumers and forensic users. Immutable data storage and the retrieval of data are essential. Two challenges in information security are incorporating reliable access control for users and devices while granting access to confidential data for relevant users and maintaining data persistence. This research used a blockchain structure for data persistence. We propose a framework of novel protocols to authenticate users (prosumers and auctioneers) by the edge server and of the edge server by the cloud server. Our framework also provides access to forensic users using immutable blockchain-based data storage with endpoint authentication and a role-based user access control system. We simulated the framework using the Automated Validation of Internet Security Protocols and Applications and showed that it can deal effectively with several security issues.
- Description: Doctor of Philosophy
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