A Block-Free Distributed Ledger for P2P Energy Trading: Case with IOTA?

  • Joon Park
  • Ruzanna ChitchyanEmail author
  • Anastasia Angelopoulou
  • Jordan Murkin
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 11483)


Across the world, the organisation and operation of the electricity markets is quickly changing, moving towards decentralised, distributed, renewables-based generation with real-time data exchange-based solutions. In order to support this change, blockchain-based distributed ledgers have been proposed for implementation of peer-to-peer energy trading platform. However, blockchain solutions suffer from scalability problems as well as from delays in transaction confirmation. This paper explores the feasibility of using IOTA’s DAG-based block-free distributed ledger for implementation of energy trading platforms. Our agent-based simulation research demonstrates that an IOTA-like DAG-based solution could overcome the constraints that blockchains face in the energy market. However, to be usable for peer-to-peer energy trading, even DAG-based platforms need to consider specificities of energy trading markets (such as structured trading periods and assured confirmation of transactions for every completed period).


Blockchain Peer to peer energy trading platform DAG-based distributed ledger Block-free ledger IOTA Agent-based simulation 


  1. 1.
    Zhang, C., Wu, J., Long, C., Cheng, M.: Review of existing peer-to-peer energy trading projects. Energy Procedia 105, 2563–2568 (2017)CrossRefGoogle Scholar
  2. 2.
    Murkin, J., Chitchyan, R., Ferguson, D.: Towards peer-to-peer electricity trading in the UK (2018). Presented at All Energy
  3. 3.
    Burger, C., Kuhlmann, A., Richard, P., Weinmann, J.: Blockchain in the energy transition a survey among decision makers in the German energy industry (2016)Google Scholar
  4. 4.
    Mattila, J., et al.: Industrial blockchain platforms: an exercise in use case development in the energy industry (2016).
  5. 5.
    Stojkoska, B.L.R., Trivodaliev, K.V.: A review of Internet of Things for smart home: challenges and solutions. J. Clean Prod. 140, 1454–64 (2017)CrossRefGoogle Scholar
  6. 6.
    Christidis, K., Devetsikiotis, M.: Blockchains and smart contracts for the IoTs. IEEE Access 4, 2292–2303 (2016)CrossRefGoogle Scholar
  7. 7.
    Chitchyan, R., Murkin, J.: Review of blockchain technology and its expectations: case of the energy sector. arXiv preprint arXiv:1803.03567 (2018)
  8. 8.
    Andoni, M., et al.: Blockchain technology in the energy sector: a systematic review of challenges and opportunities. Renew. Sustain. Energy Rev. 100, 143–174 (2019)CrossRefGoogle Scholar
  9. 9.
    Mengelkamp, E., et al.: A blockchain-based smart grid: towards sustainable local energy markets. Comput. Sci.-Res. Dev. 33, 207–214 (2018)CrossRefGoogle Scholar
  10. 10.
    Murkin, J., Chitchyan, R., Byrne, A.: Enabling peer-to peer electricity trading. In: 4th International Conference on ICT for Sustainability, pp. 234–235 (2016)Google Scholar
  11. 11.
    Pop, C., et al.: Blockchain based decentralized management of demand response programs in smart energy grids. Sensors 18(1), 162 (2018)CrossRefGoogle Scholar
  12. 12.
    Oh, S.-C., et al.: Implementation of blockchain-based energy trading system. Asia Pac. J. Innov. Entrepreneurship 11(3), 322–334 (2017)CrossRefGoogle Scholar
  13. 13.
    Mihaylov, M., et al.: NRG-X-change-a novel mechanism for trading of renewable energy in smart grids. In: Smartgreens, pp. 101–106 (2014)Google Scholar
  14. 14.
    Mannaro, K., Pinna, A., Marchesi, M.: Crypto-trading: blockchain-oriented energy market. In: AEIT International Annual Conference, pp. 1–5. IEEE (2017)Google Scholar
  15. 15.
    LeMahieu, C.: RaiBlocks: a feeless distributed cryptocurrency network (2017).
  16. 16.
    Churyumov, A.: Byteball: a decentralized system for storage and transfer of value (2015).
  17. 17.
    IOTA: A cryptocurrency for the Internet of Things.
  18. 18.
    Buterin, V.: Ethereum white paper. GitHub repository, pp. 22–23 (2013)Google Scholar
  19. 19.
    Popov, S.: The tangle (2017).
  20. 20.
    XJ Technologies Company Ltd.
  21. 21.
    Macal, C.M., North, M.J.: Tutorial on agent-based modelling and simulation. J. Simul. 4(3), 151–162 (2010)CrossRefGoogle Scholar
  22. 22.
    Macal, C.M., North, M.J.: Agent-based modeling and simulation: ABMS examples. In: Proceedings of 40th Conference on Winter Simulation, pp. 101–112 (2008)Google Scholar
  23. 23.
    Murkin, J., Chitchyan, R., Ferguson, D.: Goal-based automation of peer-to-peer electricity trading. In: Otjacques, B., Hitzelberger, P., Naumann, S., Wohlgemuth, V. (eds.) From Science to Society. PI, pp. 139–151. Springer, Cham (2018). Scholar
  24. 24.
    Graphviz: Graphviz-Graph Visualization Software.
  25. 25.
    UK Government Office for Science, Distributed Ledger Technology: Beyond Block Chain (2016).
  26. 26.
    Ito, J.: Our response to “a cryptocurrency without a blockchain has been built to outperform bitcoin”. Accessed 15 Mar 2018
  27. 27.
    Siim, J.: DAG-Based Distributed Ledgers (2018)Google Scholar
  28. 28.
    Wall, E.: IOTA is centralized. Accessed 15 Mar 2018
  29. 29.
    IOTA Foundation: Coordinator. Accessed 15 Mar 2018

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • Joon Park
    • 1
  • Ruzanna Chitchyan
    • 1
    Email author
  • Anastasia Angelopoulou
    • 2
  • Jordan Murkin
    • 1
  1. 1.University of BristolBristolUK
  2. 2.Columbus State UniversityColumbusUSA

Personalised recommendations