Privacy-Preserving Peer-to-Peer Energy Trading in Blockchain-Enabled Smart Grids Using Functional Encryption

Ye-Byoul Son, Jong-Hyuk Im, Hee-Yong Kwon, Seong-Yun Jeon and Mun-Kyu Lee
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Ye-Byoul Son: Department of Computer Engineering, Inha University, Incheon 22212, Korea
Jong-Hyuk Im: Department of Computer Engineering, Inha University, Incheon 22212, Korea
Hee-Yong Kwon: Department of Computer Engineering, Inha University, Incheon 22212, Korea
Seong-Yun Jeon: Department of Computer Engineering, Inha University, Incheon 22212, Korea
Mun-Kyu Lee: Department of Computer Engineering, Inha University, Incheon 22212, Korea

Energies, 2020, vol. 13, issue 6, 1-22

Abstract: Advanced smart grid technologies enable energy prosumers to trade surplus energy from their distributed renewable energy sources with other peer prosumers through peer-to-peer (P2P) energy trading. In many previous works, P2P energy trading was facilitated by blockchain technology through blockchain’s distributive nature and capacity to run smart contracts. However, the feature that all the data and transactions on a blockchain are visible to all blockchain nodes may significantly threaten the privacy of the parties participating in P2P energy trading. There are many previous works that have attempted to mitigate this problem. However, all these works focused on the anonymity of participants but did not protect the data and transactions. To address this issue, we propose a P2P energy trading system on a blockchain where all bids are encrypted and peer matching is performed on the encrypted bids by a functional encryption-based smart contract. The system guarantees that the information encoded in the encrypted bids is protected, but the peer matching transactions are performed by the nodes in a publicly verifiable manner through smart contracts. We verify the feasibility of the proposed system by implementing a prototype composed of smart meters, a distribution system operator (DSO) server, and private Ethereum blockchain.

Keywords: smart grid; blockchain; peer-to-peer energy trading; privacy protection; functional encryption (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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