Bid-Matching Problem and Score-Based Consensus for Peer-to-Peer Energy Trading

Xiangyu Su; Xavier Défago; Mario Larangeira; Kazuyuki Mori; Takuya Oda; Yuta Okumura; Yasumasa Tamura; Keisuke Tanaka

Paper 2022/1471

Bid-Matching Problem and Score-Based Consensus for Peer-to-Peer Energy Trading

Xiangyu Su

, Tokyo Institute of Technology

Xavier Défago, Tokyo Institute of Technology

Mario Larangeira, Tokyo Institute of Technology, Input Output, Global

Kazuyuki Mori, Mitsubishi Electric (Japan)

Takuya Oda, Tokyo Institute of Technology

Yuta Okumura, Mitsubishi Electric (Japan)

Yasumasa Tamura, Tokyo Institute of Technology

Keisuke Tanaka, Tokyo Institute of Technology

Abstract

The demand for peer-to-peer (P2P) energy trading systems (ETS) grows alongside the development of house renewable energy generation. A P2P/ETS enables its peers to trade energy freely as in a double auction market. It requires a ledger to record peers' trading history. A typical approach is relying on a decentralized ledger, e.g., blockchain, with smart contract capabilities, unavoidably incurring high costs. Therefore, motivated to build a smart contract-free system, this work proposes a novel blockchain and consensus design utilizing the double auction characteristics of P2P/ETS. Concretely, we first revisit the blockchain data structure so that it can reflect auction bids. Next, we introduce a novel mining mechanism utilizing a bid-matching problem (BMP), which requires miners to find the best combination sets of sell/buy bids according to a given scoring function. Hence, the miner who mines the best-scored block can extend the blockchain. The fundamental difference between the BMP-based mining and traditional proof-of-X schemes, e.g., work or stake, is that our protocol selects blocks instead of miners. That is, a higher-scored block has better contents (bids and transactions), thus being preferable to a lower-scored block regardless of whether the miner is honest. Finally, we analyze miners' local chain dynamics and show a bound for the score distribution of the scoring function to prove that the protocol satisfies the key properties of consensus, i.e., persistence and liveness.

Metadata

Available format(s): PDF
Category: Cryptographic protocols
Publication info: Preprint.
Keywords: Peer-to-Peer Energy Trading Blockchain Protocol Proof-of-Work
Contact author(s): su x ab @ m titech ac jp
mario larangeira @ iohk io
keisuke @ is titech ac jp
History: 2022-10-27: approved; 2022-10-27: received; See all versions
Short URL: https://ia.cr/2022/1471
License: CC BY

BibTeX

@misc{cryptoeprint:2022/1471,
      author = {Xiangyu Su and Xavier Défago and Mario Larangeira and Kazuyuki Mori and Takuya Oda and Yuta Okumura and Yasumasa Tamura and Keisuke Tanaka},
      title = {Bid-Matching Problem and Score-Based Consensus for Peer-to-Peer Energy Trading},
      howpublished = {Cryptology ePrint Archive, Paper 2022/1471},
      year = {2022},
      note = {\url{https://eprint.iacr.org/2022/1471}},
      url = {https://eprint.iacr.org/2022/1471}
}