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ScienceDirect
Procedia Computer Science 00 (2019) 000–000
Procedia
Procedia Computer
Computer Science
Science 22400 (2019)
(2023) 000–000
306–313 www.elsevier.com/locate/procedia
www.elsevier.com/locate/procedia

The 13th International Conference on Sustainable Energy Information Technology (SEIT)

The 13th International Conference
August on Sustainable
14-16, 2023, Energy
Halifax, Nova Information
Scotia, Canada Technology (SEIT)
August 14-16, 2023, Halifax, Nova Scotia, Canada
Energy
Energy Management,
Management, Control,
Control, and
and Operations
Operations in
in Smart
Smart Grids:
Grids:
Leveraging Blockchain Technology for Enhanced Solutions
Leveraging Blockchain Technology for Enhanced Solutions
Douiri Leila*a,b , Samir Ouchanic , Sana Kordoghlib , Zegrouba Fethib , Beddiar Karima
Douiri Leila*a,b , Samir Ouchanica, Sana Kordoghlib , Zegrouba Fethib , Beddiar Karima
CESI LINEACT Nantes, France
a CESI LINEACT Nantes, France
b RLEST, 1003 Hammam Lif, 2050, Tunisia
b RLEST, 1003 Hammam Lif, 2050, Tunisia
c CESI LINEACT Aix-en-Provence, France
c CESI LINEACT Aix-en-Provence, France

Abstract
Abstract
As smart grids advance rapidly, they are evolving along two primary trajectories: (1) digitalization through the incorporation of
As smartofgrids
Internet advance
Things (IoT) rapidly, theyand
technology are intelligent
evolving along twoand
control, primary trajectories: (1)bydigitalization
(2) decentralization through thedistributed
leveraging small-scale incorporation of
energy
Internet of Things
sources for control.(IoT) technology
However, these and intelligent also
developments control, and (2)complexities
introduce decentralization byfunctioning,
in the leveraging small-scale
management, distributed energy
and control of
sources for control.
smart grids. However,
Consequently, these
there developments
is an urgent need also
for aintroduce complexities
transparent, in thetransactive,
secure, robust, functioning,andmanagement, and control
scalable framework of
for all
smart grids. Consequently, there is an urgent need for a transparent, secure, robust, transactive, and scalable
stakeholders and operators. Blockchain technology emerges as a promising solution for this new smart grid paradigm, providing framework for all
stakeholders and operators.
a range of features, Blockchain
including a distributedtechnology emerges as a promising
ledger, immutability, consensus, solution
security,forandthis new smartThis
automation. grid article
paradigm, providing
highlights the
achallenges
range of in
features, including a distributed ledger, immutability, consensus, security, and automation. This article
smart grid management, control, and operations, and discusses the potential of blockchain-based solutions to address highlights the
challenges in smart grid management, control, and operations, and discusses the potential of blockchain-based solutions
these issues. It demonstrates that the adoption of blockchain can significantly enhance the overall functioning of the infrastructure to address
these issues. It demonstrates
by establishing a decentralized that the adoption
architecture of blockchain
without can significantly enhance the overall functioning of the infrastructure
central governance.
by establishing a decentralized architecture without central governance.
© 2023
© 2020 The
The Authors.
Authors. Published
Published byby Elsevier
Elsevier B.V.
B.V.
© 2020
This is The Authors. Published by Elsevier B.V.
This is an
an open
open access
access article
article under
under the
the CC
CC BY-NC-ND
BY-NC-ND license
license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
(https://creativecommons.org/licenses/by-nc-nd/4.0)
This is an open
Peer-review access
under article under
responsibility of the Conference
the CC BY-NC-ND license
Program (http://creativecommons.org/licenses/by-nc-nd/4.0/)
under responsibility of the scientific committee of Chairs.
the Conference Program Chair
Peer-review under responsibility of the Conference Program Chairs.
Keywords: Smart grid; Blockchain; Advanced Metering Infrastructure; Distribted Energy Ressources; Decentralization; Energy Management
Keywords: Smart grid; Blockchain; Advanced Metering Infrastructure; Distribted Energy Ressources; Decentralization; Energy Management

1. Inroduction
1. Inroduction
The rapid expansion of distributed energy resources (DERs), escalating energy demand, widespread adoption of
The rapid
Internet expansion
of Things (IoT) of distributed
devices, energy resources
and growing (DERs), have
security concerns escalating energy
rendered demand, widespread
the management, control,adoption of
and opera-
Internet of Things (IoT) devices, and growing security concerns have rendered the management, control, and
tion of smart grids (SG) increasingly complex [20]. The SG currently operates on a centralized platform and reliesopera-
tion of smartintermediaries
on multiple grids (SG) increasingly complexinterconnected
to provide various [20]. The SG services,
currentlyincluding
operates energy
on a centralized platform
generation, and relies
transmission and
on multiple intermediaries to provide various interconnected services, including energy generation, transmission and

∗ Corresponding author. Tel.: +216 52 585 185 ; fax: +0-000-000-0000.

∗ Corresponding
E-mail address:author. Tel.: +216 52 585 185 ; fax: +0-000-000-0000.
douirileila.cand@gmail.com
E-mail address: douirileila.cand@gmail.com

1877-0509 © 2020 The Authors. Published by Elsevier B.V.

1877-0509
This © 2020
is an open Thearticle
access Authors. Published
under by Elsevier B.V.
the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
1877-0509 © 2023
This is an open Thearticle
access Authors. Published
under by Elsevier B.V.
the Conference
CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Peer-review
This is an under
open responsibility
access article of the
under the CC Program
BY-NC-ND Chairs.
license (https://creativecommons.org/licenses/by-nc-nd/4.0)
Peer-review under responsibility of the Conference Program Chairs.
Peer-review under responsibility of the scientific committee of the Conference Program Chair
10.1016/j.procs.2023.09.041
 Douiri Leila et al. / Procedia Computer Science 224 (2023) 306–313 307
2 Author name / Procedia Computer Science 00 (2019) 000–000

distribution tracking, equipment monitoring, billing, and bidding [20]. As the power system becomes more intricate,
connecting various domains, traditional centralized control methods are proving to be inadequate. In this regard, the
blockchain delivers a promising solution to the aforementioned difficulties [18]. With the adoption of this technol-
ogy, the SG infrastructure, network, and market may be decentralized, trustless but private, immutable, transparent,
auditable, and autonomous.
A variety of surveys [18, 3, 5] on blockchain deployments, challenges, prospects, and future trends in the energy
sector—especially in home energy efficiency, vehicle-to-grid, renewable energies, and energy trading—have been
published. However, the research question addressed is whether the utilization of blockchain can meet the current
requirements of SG control, operation, and management. Hence, the main contributions of this work are (1) A short
literature review of the numerous issues confronting the existing smart grid systems (Section 3), (2) A comprehensive
overview of blockchain solutions, applications, and architectures in smart grids (Section 4), and (3) Future research
and development directions for blockchain-based smart grids (Section 5).

2. Smart Grid architectures

The National Institute of Standards and Technology (NIST) published a conceptual model [11] to clarify the various
stakeholders and their responsibilities in the smart grid. According to this model, the smart grid may be broken down
into seven domains, where each domain is regarded as an actor capable of performing certain functions and interacting
with other actors through information exchange. The seven domains include: Customers, Markets, Service providers,
Operation, Generation including DERs, Transmission, and Distribution.
In this context, several architectures are available for smart grids, including: Smart Grid Architecture Model
(SGAM), Three-layered architecture, and Cloud-based architecture. We will go through them below.

2.1. Smart Grid Architecture Model

There are five layers in the Smart Grid Architecture Model (SGAM): business, function, information, communica-
tion, and component which are commonly referred to as interoperability layers. Each interoperability layer contains a
smart grid plane, which encompasses electrical domains (generation, transmission, distribution, and consumption) and
information management zones (process, station, operation, market). The main objective of this model is to illustrate
the interactions between domains and the corresponding information management zones. For ease of understanding,
SGAM can be divided into two categories: SGAM smart grid domains and SGAM interoperability layers [23].

2.2. Three Layered architecture

The three-layered smart grid architecture has been proposed in [6, 10]. A closed-loop data flow structure is usually
designed in this framework to accomplish energy-aware automation from data-driven approaches. The main com-
ponents of each layer are: (1) Perception Layer includes voltage and current sensors to monitor the smart grid in
real-time and connect them to all power system equipment. (2) Network Layer is built on telecommunication net-
works to map the information gathered by the perception layer to the telecommunication protocol, and then convey
the data to the next layer. (3) Application Layer diagnoses the received data by the system and takes appropriate
actions.

2.3. Cloud-based architecture

The Cloud-based architecture shifts static energy management and centralized control at the consumer-side smart
grid to dynamic and distributed energy control. This architecture is made up of four major components: (i) multi-
source energy policies, (ii) mobile device monitoring and control, (iii) location-based automated control, and (iv) a
cloud computing platform for data storage and processing [22]. Different consumers may dynamically adjust their
energy-saving policies using their cell phones. Location is utilized in the development of automatic control policies
that may switch energy gadgets on or off in homes and business buildings by recognizing the user’s whereabouts.
In order to bridge the digital gap between the grid’s physical layer (generation, transmission, distribution, and con-
sumption devices), multi-domain data analysis and aggregation, and the service-based layer, we methodically break
down smart grid challenges into three layers: (i) Physical Grid Infrastructure Layer is comprised of equipment that
308 Douiri Leila et al. / Procedia Computer Science 224 (2023) 306–313
Author name / Procedia Computer Science 00 (2019) 000–000 3

produces and/or consumes electricity as well as components that distribute production and load power. (ii) Energy
Cloud Layer assembles, categorizes, and pre-processes energy data from multi-domain sensors. The energy data is
usually incorporated into forecasting algorithms after pre-processing. The findings of prediction models are then sent
for further analysis, aggregation, and consequent power grid management. (iii) Application Layer operates the power
grid by enabling real-time control, operational efficiency, and increased grid stability. Its main features are: precise
planning and scheduling, demand-side management, optimal load distribution, market management, and billing.

3. Management, Control, and Operations Challenges in Smart Grids

Internet-connected smart grids, also known as Internet of Energy (IoE), are gaining momentum as a novel solution
for ensuring energy availability from anywhere at any time [18]. The fundamental purpose of these advancements
is to create a sustainable and reliable energy society. However, integrating an expanding number of heterogeneous
components and mitigating security and transparency concerns might be tricky.

3.1. Grid Infrastructure’s State Awareness

Due to the sensitivity of the power grid, data must be accessible in a timely and reliable manner. In cases where
availability is compromised, the disruption of information access may result in dire consequences for power delivery
plans. Synchrophasor networks play a crucial role in this context, as they are extensively employed to capture and
transmit measurement data, such as voltage, current, frequency, overloads, synchronization losses, and time, through
Phasor Measurement Units (PMUs) and Phasor Data Concentrators (PDCs).
A notable limitation of this communication architecture lies in its centralized structure prone to a potential Single
Point of Failure (SPoF) issue, wherein multiple localized PDCs relay the gathered data to a single, trusted control
center. This also results in high control complexity as the number of components grows. Besides, this hierarchical
architecture leads to lengthy processes and increases the grid’s unreliability. Moreover, DERs typically operate at full
capacity, injecting all available electricity into the grid to enhance efficiency, often without knowledge of the grid’s
current status. This can lead to irregular voltage behavior on distribution feeders [7]. Regulating the power output
of DERs, either through active power restriction or reactive power adjustment, is a common technique employed to
prevent grid instability. However, the sheer number and diversity of power-producing technologies, combined with
regulatory constraints, make this task challenging, particularly when it must be overseen by a trusted central authority,
such as the Distribution System Operator (DSO). Failures or malfunctions of grid’s equipment can also significantly
impact the safety and stability of the system. The prevailing maintenance method for addressing equipment malfunc-
tion involves technicians diagnosing and repairing the issue in the field, which is inefficient and resource-intensive.
Some studies propose a trustworthy central node responsible for monitoring equipment changes and maintenance.
However, if this central node is compromised, all data may be lost. Consequently, there is an urgent need to develop
new approaches for smart grid diagnostic and maintenance. Furthermore, inadequate interaction and collaboration
between stakeholders represent another significant issue in contemporary smart grids. Energy suppliers typically per-
form state estimation and stability analysis based on data from producers and consumers. However, such estimates can
be erroneous due to insufficient information, leading to difficulties in resource distribution, suboptimal real-time per-
formance, increased distribution losses, and power outages [18]. Conversely, electricity prosumers should have better
access to their energy data to adjust it in accordance with network management requirements. Therefore, it is essential
to monitor both grid domains and technical characteristics simultaneously and continuously for the prevention of grid
imbalance and the facilitation of subsequent analysis and data management.

3.2. Secure data exchange, aggregation, and privacy

Integrating IoT-enabled sensors into the power grid could potentially expose the system to risks such as data mis-
handling and cybersecurity threats. The current SG data management system faces challenges including data confi-
dentiality, integrity, compliance control, common scope, aggregation, and management efficiency [15]. Confidentiality
pertains to the safeguarding of data and user information from unauthorized access, while data integrity is focused on
ensuring data accuracy [12]. Specifically, If the data transmitted and exchanged between PMU-PDC is compromised,
 Douiri Leila et al. / Procedia Computer Science 224 (2023) 306–313 309
4 Author name / Procedia Computer Science 00 (2019) 000–000

it may adversely impact the decision-making process at the control center. Furthermore, smart meters collecting elec-
tricity consumption data and requests could inadvertently disclose users’ personal information and future activity
plans [12]. A potential criminal could analyze the consumer’s behavior, predict when the user will be away from
home based on power requests, and exploit this knowledge to commit theft.
Anonymization is a widely-used technique for protecting users’ identities. The primary constraint for secure infor-
mation processing necessitates the presence of a reliable third party to manage the users’ data. One widely adopted
approach for preserving user anonymity is the utilization of a pseudonym. The process of registering a pseudonym
often incorporates advanced cryptographic techniques. However, adversaries can potentially establish a connection
between a user’s pseudonym and sensitive information by scrutinizing quasi-identifiers, such as age and gender [12].
Moreover, data security compliance mandates thorough inspections by multiple departments, leading to protracted
business procedures and suboptimal data usage. This issue also impacts the aggregation of large-scale multi-party
data originating from various smart grid domains. Employing a hierarchical data management approach in conjunc-
tion with data aggregation results in extended data collection and processing times, as well as information distortion
[18]. Furthermore, reliable central nodes are responsible for storing energy data within the power grid. However,
this centralized storage methodology presents security concerns, including single-point failures and the potential for
malicious data manipulation. Consequently, it is of paramount importance to devise a robust, secure, and reliable
decentralized data storage system [15].

3.3. Decentralizing grid management and operation

Decentralization should not only address data storage but also extend to operation and control. The electrical grid
was not originally designed to cope with the rapidly increasing energy demand or the load dynamics imposed by high
electric vehicle penetration. Consequently, DSOs must increasingly depend on adaptable DERs —comprising flexible
loads, controlled generation, and storage—to maintain grid balance. Moreover, electric utility providers often struggle
to deliver smart solutions that accommodate economic, environmental, and technological constraints. As a result, they
typically resort to adjusting controller settings in various operating scenarios. Therefore, DSOs necessitate innovative
energy management architectures that foster collaboration between wholesale market participants and prosumers.
This collaboration enables the seamless integration of smart grid Distribution Management Systems (DMS) with
Distributed Energy Resources Management Systems (DERMS), demand-side flexibility, and decentralized operation
[21].
In this context, the concept of transactive energy was developed to combine demand-side management and en-
ergy markets with system operations, hence extending the prospects for decentralizing energy management, building
microgrids, and using sustainable energy [16]. The existing energy trading market requires manual processing by
third-party auditors such as agents, trading agencies, brokers and banks, resulting in significant time complexity due
to the participation of several third parties. Certain trading models also strive to align the wholesale and retail markets,
which is a popular field of research in transactive energy. This is mainly pushed due to retail markets offering static
pricing to prosumers. Yet, due to registration and authentication checks with a centralized server, it is difficult for pro-
sumers to dynamically participate in trading activities [18]. The existing energy trading procedure also has low data
security and scalability difficulties because if the central authority is compromised, the stored transaction data is al-
tered. As a consequence of privacy concerns, high running expenses, and low operational efficiency, some nodes with
excess energy refuse to participate in the energy trading market. Challenges of current Smart Grids are summarized
in Fig. 1.

4. Blockchain as Solution
Blockchain technology has the potential to revolutionize smart grid applications. The aforementioned layers will
be utilized to better categorize blockchain-based smart grid solutions.
4.1. Grid infrastructure’s state awareness
Blockchain technology offers a robust framework that enables the synchronization of data originating from a mul-
titude of sources and effectively coordinates communication among numerous domains and stakeholders. By employ-
ing the inherent features of blockchain’s immutable and open ledger, it becomes feasible to significantly improve data
310 Douiri Leila et al. / Procedia Computer Science 224 (2023) 306–313
Author name / Procedia Computer Science 00 (2019) 000–000 5

Energy Cloud Layer Application Layer

Physical Layer
Grid Infrastructure State Awareness
• Monitor grid technical characteristics
• Allow the integration of DERs
• On field fault detection and maintenance
• Poor connectivity and interaction between the
various stakeholders
• Multi-party data aggregation
• Availability of a trusted party for data
aggregation
• Data confidentiality and integrity
• Manual data security compliance
• Low data utilization efficiency
• Long processes
Decentralized Management & P2P Trading
• High control complexity
• Lack of consumers involvement in SG
management
• High distribution losses
• Manual P2P processing by third-party auditors
• Centralized governance for price settling and
billing

Fig. 1. Challenges of current Smart Grids.

availability and reliability in smart grids [3]. As noted by Bhattacharjee et al. [4], the integration of blockchain with
a smart grid’s synchrophasor network significantly enhances decentralized communication architecture. The relation-
ship between the number of Phasor Measurement Units (PMUs) and the time required to generate a Merkle tree was
studied. Remarkably, even with 300 PMUs, the time required was only about 1.5 milliseconds. This demonstrates
the feasibility of the proposed blockchain infrastructure for real-time measurements. Additionally, the relationship
between the number of PMUs and the number of hashes needed to construct a Merkle tree root hash was exam-
ined, revealing reduced computation and communication complexity. Furthermore, the cost of hash verification is
infrequent, with actual times of 0.0020 and 0.0040 milliseconds required for 50 and 300 PMUs, respectively. To
achieve more efficient, and secure equipment status monitoring, Zhang and Fan [25] proposed a system that combines
blockchain technology with IoT devices. Diagnostic nodes are registered on the blockchain, and when power protec-
tion devices and electrical terminals experience failures or exhibit abnormal behavior, they send a diagnostic request
to the Ethereum consortium network. Original vendor and non-original supplier nodes submit their prices to partici-
pate in bidding for diagnosing the node, and the winner is determined by the diagnostic smart contract.Thanks to the
transparency of blockchain, these interactions can be stored and audited on the Ethereum network.This decentralized
approach reduces network congestion and minimizes the risk of malicious tampering with sensitive data. In [2], a
similar blockchain-based design was employed for fault localization in SGs, particularly those with a high penetration
of DERs and frequent high-impedance fault occurrences. From the aforementioned literature, the blockchain archi-
tecture for grid situational awareness usually includes three main components. 1) Member nodes represent different
PMUs, PDCs, generation and distribution systems. Each node collaboratively shares its relevant data over the commu-
nication network. 2) A distributed peer-to-peer network between the member nodes. 3) A distributed, secure and an
accurate ledger serving as a record of the grid’s state and of its history. The shared ledger may include synchrophasor
data, measurements for equipment diagnosis, switch states, generation and consumption values, violations, and times-
tamps [3, 25]. These transactions are validated using consensus mechanisms and authentication techniques that will
be further detailed in Section 4.2. The Merkel tree-based technique is frequently adopted in this context for consensus
execution because it converges rapidly without affecting the integrity of the data [3].

4.2. Secure data exchange, aggregation and privacy

Studies have shown that communication between system control and physical grid infrastructure can be achieved
by implementing protection architectures, such as blockchains, to mitigate cyberattacks (e.g., Man-In-The-Middle
(MITM) or Denial of Service (DoS)) and create a secure interaction platform [8]. Specifically, blockchain technology
may aid aggregators such as Virtual Power Plants (VPP) in enhancing their multi-domain data aggregation techniques
while simultaneously establishing privacy and preserving short and long-term interactions between stakeholders [19].
Yang and Wang developed an IoT-based blockchain to enable secure data exchange among users [24]. They improved
the consensus mechanism by implementing a leader selection method and message aggregation using a modified
Practical Byzantine Fault Tolerance (PBFT). In the leader selection mechanism, validators take turns becoming the
consensus leader, which ensures that transactions have prompt finality and eliminates the potential for single-point
failures in traditional PBFT. Additionally, because PBFT is designed to function in asynchronous networks, it is more
resilient to message delays and network disruptions commonly found in IoT networks. The leader requests confirma-
tion messages from other validators and aggregates them into a single confirmation message, reducing communication
 Douiri Leila et al. / Procedia Computer Science 224 (2023) 306–313 311
6 Author name / Procedia Computer Science 00 (2019) 000–000

complexity while maintaining network bandwidth and speeding up the consensus process. It has been demonstrated
that the blockchain validation process can work successfully on IoT devices with a CPU use of fewer than 50%.
Guan et al. [12] also showcases a blockchain-based architecture for an efficient and privacy-preserving aggregation
mechanism. Users are divided into private blockchain groups or neighborhood area networks (NANs) based on their
electricity use. Each user can use multiple pseudonyms to conceal the link between their true identity and pseudonym.
The Key Management Center (KMC) builds a bloom filter for each group to enhance authentication speed, and the au-
thenticity of user pseudonyms can be confirmed using zero-knowledge proofs. A mining node from the group’s users
is selected at each time slot to ensure the availability of a trusted data aggregation party. Security analysis and perfor-
mance assessments reveal that this technique outperforms traditional authentication systems and other common data
aggregation approaches in terms of computational efficiency. Some works [15, 19] leverage blockchain technology
to enhance security compliance, enable open exchange of grid data, and improve data asset management efficiency.
By using distributed smart contracts, blockchain can organize and manage data from multiple energy domains in a
unified manner, as well as establish a decentralized and autonomous system for data upload, aggregation, and storage.
Additionally, the consensus between DERs and the aggregators enables a trusted collaboration [19].
To address concerns regarding data leakage from data sharing, Liang et al. [15] propose a data security sandbox
with homomorphic encryption to ensure that data is accessible but not acquired by unauthorized users. Moreover,
being a distributed platform, blockchain provides a trustworthy data-sharing environment among multiple parties
and streamlines data management systems. They presented a data asset management architecture consisting of three
layers. The basic resource layer includes the smart grid’s systems. The unified data exchange layer provides services
for unified data access and monitoring. The data middle layer acts as a data resource convergence hub for smart grid
stakeholders by integrating data asset processing and aggregation using big data technologies. Finally, to manage data
privacy and authentication, a data side chain was developed, while the directory blockchain shared business processes,
rules, and operational behaviors.

4.3. Decentralizing grid management and operation

Blockchain provides a secure framework for decentralized operation by using computer resources of its partici-
pants [1]. This is done through smart contracts that govern the secure operational control depending on measurements
available on the distributed ledger and without the intervention of a trusted third party operator. Additionally, trans-
parency among stakeholders is made easier by blockchain, improving real-time performance, optimizing resource
management and controls, and increasing efficiency of renewable energy resources [9].
The blockchain was utilized for Distribution Management Systems (DMS) in microgrids to decentralize load re-
quests [16]. The authors developed an autonomous and distributed approach for power dispatching with Ethereum
smart contracts. Given the smart contract’s computational power limitations, Luo et al. [16] spread the dispatching
operation among two smart contracts, which then coordinate to optimize the dispatching process. Running distributed
power dispatching has been found to considerably cut generation costs. Blockchain was also shown to be compatible
with the distributed control architecture of virtual power plants (VPP), opening up a new avenue for power market
trading and coordinated operation.
Moreover, Li et al. [13] developed a virtual power plant control model, coordinating between two blockchains, one
technical and one commercial. The technical blockchain supports stable power scheduling, transmission and balanc-
ing, by connecting the SCADA system to Ethereum. Meanwhile, the commercial blockchain supports the process of
energy pricing, transaction, and contracts. It was demonstrated that for the same total power supply, the blockchain
approach accessed 17.6 MW more renewable grid-connected power than the conventional approach. Furthermore, as
compared to traditional control approaches, the active power loss and power generating costs are reduced. Danzi et al.
[7] also proposed using smart contracts to manage grid congestion resulting from the proliferation of DERs. Specif-
ically, the blockchain is used to define and maintain a smart contract that ensures fair rotation of DER participation
in microgrid regulation. The study also demonstrated that the communication cost in the blockchain-based system
decreases as the number of DERs increases, due to the reduction in the number of blocks they individually create
within a control period.
Incentive schemes for prosumers to share energy with the grid were also enforced with blockchain, where peers that
contribute the most to the trade are rewarded with virtual currency. This is enabled by monitoring transaction history
from blockchain ledgers. The associated rewards or penalties, and the rules for demand response (DR) programs can
312 Douiri Leila et al. / Procedia Computer Science 224 (2023) 306–313
Author name / Procedia Computer Science 00 (2019) 000–000 7

be established in smart contracts. Blockchain also enhances secure and automated bidding, negotiations, and payment
transactions without human intervention [24]. Moreover, a secure blockchain-based credit system enables users to
purchase the local energy needed without having real possession of virtual currency at that time. In [17], the credit-
based scheme managed by the supervisory nodes validates each node’s request for the release of credit tokens and
releases them if the requesting node fits the established standard. Furthermore, Pop2018Sensors [21] added another
layer of flexibility for stakeholders of the peer-to-peer energy market. In this approach, self-enforcing smart contracts
systematically compute the expected adjustments for each DR event and enforce the expected energy flexibility at the
prosumer level by registering his baseline energy profile. This strategy was found to establish trust among market par-
ticipants and be able to effectively correct energy balance discrepancies. In particular, the aggregated energy demand
profile of all DEPs was found to be shifted by 7% to match the projected level during the peak energy production.
From the aforementioned literature, the architecture for decentralized grid management can be broken down into
three common entities: (1) Energy devices which include energy buyers, sellers, and prosumers. Each node selects
its own role depending on its current energy status and flexibility. (2) Super nodes that have the authority to select
specific devices from the edge devices to participate in the consensus process. (3) Smart meters which record the
amount of exchanged energy in real-time. It is worth noting that each energy node becomes a genuine entity after
being registered in the blockchain. Each node is given an identity, a set of public and private keys, a certificate
for unique identification, and a wallet address. Fig. 2 categorizes the studied blockchain-based smart grid solutions
regarding the aforementioned three layer with respect to their main advantageous features: Auditability, Security and
privacy, and Decentralization.

Physical Layer Application Layer

• Automatic and decentralized communication Energy Cloud Layer • Decentralized and autonomous control [2].
architecture [4].
• Authentic and multi-dimensional data • Support energy management without
• Automatic and decentralized equipment fault aggregation [12, 16]. intermediaries [7, 8].
diagnosis and maintenance [2].
• Data safety and trusted sharing [2]. • Support distributed computing [16].
• Trusted interaction between various energy
• Immutable and traceable data structures. • Automated and secure P2P trading [14].
domains and stakeholders [13].
• Flattened data management architecture [15]. • Enhance flexibility and efficiency of DERs
• Prosumers and consumers’ role in DR
programs is facilitated [7, 9]. [1, 13].

Fig. 2. Blockchain-based Smart Grid solutions.

5. Discussions

Localized stand-alone solutions cannot completely operate the smart grid. A significant amount of research is
required to enable the proper management, control, and operation of Blockchain-based smart grids. The following
addresses further discussion and research directions.
• Scalability, speed, and security are essential for the widespread adoption of new technology. Blockchain
technology has moved beyond the proof of concept stage, but it must now be scaled up and made cost-effective.
One potential approach to reducing data storage costs involves using sidechains (subsidiary blockchains) for
data storage, while the main blockchain serves as a control layer rather than a storage layer.
• Consensus mechanisms in large-scale blockchain networks require each transaction to be accepted before it
can be implemented throughout the network. Conflicts over this process may lead to forking and fragmentation
of the network, thereby compromising its security and data integrity. The design of blockchain networks for
smart grids must take this into account to prevent such consequences.
• Decentralized smart grid management is still in the early stages of development. Blockchain-based solutions
need to be explored further in areas such as improving demand-supply balance, automating grid asset verifica-
tion, anticipating grid requirements, and enabling self-adjusting power consumption based on price fluctuations.

6. Conclusion

Blockchain evolves alongside advancements in perception, aggregation, storage, and processing technologies. As
such technology, it possesses the potential to revolutionize smart grids. In this paper, we develop a theoretical model to
 Douiri Leila et al. / Procedia Computer Science 224 (2023) 306–313 313
8 Author name / Procedia Computer Science 00 (2019) 000–000

better understand the challenges faced by SGs and propose unified blockchain architectures to address these identified
issues. Additionally, we examine blockchain technology from the perspectives of various stakeholders, including the
power grid and market operators, consumers, and prosumers. This review aims to promote research into innovative
approaches for satisfying the demands of smart grid management, control, and operation.
For blockchain to achieve widespread adoption in the smart grid, both the industry and scientific community must
collaborate to surmount the significant hurdles ahead. Importantly, blockchain should be designed for interoperability
and operation on a lightweight framework while retaining its core features. Some of these research challenges may be
resolved in the future, potentially transforming smart grids into fully decentralized and secure systems.

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