Blockchain, a Sustainable Solution for Cybersecurity Using Cryptocurrency for Financial Transactions in Smart Grids

Abstract

Power systems are experiencing evolutionary changes. Future grids will be smarter and with a higher level of autonomy. In addition, the penetration of demand-side small-scale distributed generation is mounting. The proliferation of electric vehicles (EVs) conveys a promising and brilliant future for this technology, particularly for vehicles with V2G capability, that will result in a boom in the pervasiveness of EVs in the next decades. Digitalization and modernization of power systems, as well as ever-growing technological advances in information and communications technology (ICT) and the internet of things (IoT), will procure a smart platform that facilitates peer-to-peer (P2P) communication of power systems’ elements. Thus, future power systems will be immensely complicated and interconnected in terms of data transfer and data processing. Hence, in addition to the employment of big data techniques, some structural changes are required to deal with such a massive body of data. Therefore, the security of data must be ensured specifically for financial transactions. Furthermore, in the future grids, millions of microsources will sell their generating power to the local loads in demand-side, and a load may be served by several microsources. Furthermore, flexible loads can use this platform to trade interchangeably with inelastic loads or the main grid. In this respect, myriad transactions must be recorded, which cannot be handled with the current banking system. This matter necessitates the deployment of blockchain-based cryptocurrencies for handling these microtransactions without needing to supervisory and authority. Hence, a proper platform is indispensable to connect the vendors and purchasers easily and executes the transaction after authentication, validation, and verification of both sides. This study delves into the necessity of employment of blockchain in power systems. Besides, the conceptual background of blockchain and cryptocurrency are explained.