DAG-Based Distributed Ledger for Low-Latency Smart Grid Network

Seongjoon Park and Hwangnam Kim
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Seongjoon Park: School of Electrical Engineering, Korea University, Seoul 02841, Korea
Hwangnam Kim: School of Electrical Engineering, Korea University, Seoul 02841, Korea

Energies, 2019, vol. 12, issue 18, 1-22

Abstract: In this paper, we propose a scheme that implements a Distributed Ledger Technology (DLT) based on Directed Acyclic Graph (DAG) to generate, validate, and confirm the electricity transaction in Smart Grid. The convergence of the Smart Grid and distributed ledger concept has recently been introduced. Since Smart Grids require a distributed network architecture for power distribution and trading, the Distributed Ledger-based Smart Grid design is a spotlighted research domain. However, only the Blockchain-based methods, which are a type of the distributed ledger scheme, are currently either being considered or adopted in the Smart Grid. Due to computation-intensive consensus schemes such as Proof-of-Work and discrete block generation, Blockchain-based distributed ledger systems suffer from efficiency and latency issues. We propose a DAG-based distributed ledger for Smart Grids, called PowerGraph, to resolve this problem. Since a DAG-based distributed ledger does not need to generate blocks for confirmation, each transaction of the PowerGraph undergoes the validation and confirmation process individually. In addition, transactions in PowerGraph are used to keep track of the energy trade and include various types of transactions so that they can fully encompass the events in the Smart Grid network. Finally, to ensure that PowerGraph maintains a high performance, we modeled the PowerGraph performance and proposed a novel consensus algorithm that would result in the rapid confirmation of transactions. We use numerical evaluations to show that PowerGraph can accelerate the transaction processing speed by over 5 times compared to existing DAG-based DLT system.

Keywords: smart grid; distributed ledger technology; DAG-based distributed ledger (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: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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