A Security Analysis of Blockchain Based Decentralized Energy Exchange System

Abstract

Energy trading using distributed smart grids is gaining popularity these days. The integration of Blockchain with distributed smart grids will provide an even better solution with features like sophisticated consumption monitoring and a robust and scalable energy trading system. Blockchain with its properties of secure recording, anonymity, transparency and distributed implementation will further strengthen the decentralized operation of energy trading among various entities of the smart grid network. However, the full potential of this new network cannot be achieved due to the inherent security and privacy issues. In this research paper, the authors have identified a security vulnerability in the transaction flow implementation. First, an overview of a decentralized energy trading network has been given. Then the process flow has been discussed in detailed at every stage. Finally, two scenarios have been presented where the poor security measures can be exploited to perform a double spending attack (DSA) with a help of a Block Delay Technique.