Blockchain for peer-to-peer energy exchanges: probabilistic approach of Proof of Stake

Abstract

Energy communities and peer-to-peer energy exchangesare expected to play an important role in the energy transition. In this context, the blockchain approach can be employed to foster this decentralized energy market. In [1],we evaluated several designs that should allow a Distribution System Operator (DSO) to accept peer-to-peer energyexchanges supported by this technology. This acceptanceis based on criteria such as a strong link with the wholesale/retail market, the resilience of the consensus to approve a block, the accuracy, traceability, privacy and security of the proposed schemes. We concluded that proof-ofstake (PoS), where the choice of node that creates a block isbased on a measure of its wealth, is the only method to fulfill these requirements. In the present paper, we clarify theidentification and estimation of bidding models to ensurethat the PoS that we are developing is a correct responseto two major issues with the PoS methodology, namely theconcentration of wealth and the ”nothing to stake” issue.1