Robust Decentralized Proof of Location for Blockchain Energy Applications Using Game Theory and Random Selection

Yaçine Merrad, Mohamed Hadi Habaebi, Md. Rafiqul Islam, Teddy Surya Gunawan and Mokhtaria Mesri
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Yaçine Merrad: IoT & Wireless Communication Protocols Laboratory, Department of Electrical & Computer Engineering, International Islamic University Malaysia, Kuala Lumpur 53100, Malaysia
Mohamed Hadi Habaebi: IoT & Wireless Communication Protocols Laboratory, Department of Electrical & Computer Engineering, International Islamic University Malaysia, Kuala Lumpur 53100, Malaysia
Md. Rafiqul Islam: IoT & Wireless Communication Protocols Laboratory, Department of Electrical & Computer Engineering, International Islamic University Malaysia, Kuala Lumpur 53100, Malaysia
Teddy Surya Gunawan: Department of Electrical & Computer Engineering, International Islamic University Malaysia, Kuala Lumpur 53100, Malaysia
Mokhtaria Mesri: Department of Electronics, University Amar Télidji of Laghouat, Laghouat 03000, Algeria

Sustainability, 2022, vol. 14, issue 10, 1-24

Abstract: To combat the problem of illegal access to a service, several location proof strategies have been proposed in the literature. In blockchain-based decentralized applications, transactions can be issued by IoT nodes or other automated smart devices. Key pair encryption and private key signing have been defined mainly for human identification in blockchain applications, where users are personally and responsibly concerned about the confidentiality of their private key. These methods are not suitable for computing nodes whose private key is implemented in the software they run. Ensuring that transactions are issued by a legitimate sender with the proper credentials is a bigger concern in applications with financial stakes. This is the case with blockchain energy trading platforms, where prosumers are credited with tokens in exchange for their contributions of energy. The tokens are issued by smart meter nodes installed at fixed locations to monitor the energy inputs and outputs of a given prosumer and claim energy tokens on its behalf from a defined smart contract in exchange for the energy it feeds into the grid. To this end, we have developed a decentralized Proof-of-Location (PoL) system tailored to blockchain applications for energy trading. It ensures that automated transactions are issued by the right nodes by using smart contract-based random selection and a game-theoretic scenario suitable for blockchain energy trading.

Keywords: blockchain; energy trading; game theory; proof of location; random selection (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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