A Novel PoEAC Consensus Mechanism for Decentralized Energy Trading Systems

Abstract

The transition towards decentralized energy systems has spurred the need for innovative consensus mechanisms to facilitate efficient and transparent energy trading among prosumers. In response to this challenge, we propose a novel Proof of Energy Authentication and Contribution (PoEAC) consensus mechanism tailored for decentralized energy trading systems. PoEAC integrates cryptographic authentication and contribution verification to empower authenticated prosumers in the energy market. Prosumers authenticate themselves by proving ownership of energy-producing assets or storage devices, while demonstrating their contribution to the energy system through verifiable evidence of energy production or storage capacity. Leveraging cryptographic techniques such as zero-knowledge proofs and digital signatures, prosumers generate proofs of their authenticated status and contribution, which are evaluated by the consensus algorithm to validate energy transactions. The proposed model was simulated in MATLAB, with four prosumers over a 24hour horizon. Simulation results confirm that PoEAC successfully validates all legitimate energy transactions while rejecting 100 % of invalid or unauthorized trades. This paper presents the design and implementation of PoEAC, highlighting its advantages in enhancing trust, transparency, and incentivized participation in decentralized energy trading systems.