Dag-based distributed ledger for low-latency smart grid network

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.