Bit-energy: An innovative bitcoin-style distributed transactional model for a competitive electricity market

Abstract

This paper proposes an innovative Bitcoin-style distributed transactional model, “Bit-Energy,” to enable transparent, auditable, and peer-to-peer energy transactions between active market participants directly without a central intermediary (e.g., distribution system operator) using radically different Internet-of-Things (IoT) technologies. The proposed distributed platform is fully compatible with the existing distribution grid infrastructure. Case studies demonstrate the accuracy, robustness, effectiveness, and scalability of the proposed Bit-Energy platform under various operating conditions. The distributed platform contained in this paper can apply to many other smart grid applications.