Adapdation of consensus algorithm on a blockchain based peer to peer energy trading platform

The development of microgrids and the increase of renewable energy production on local scale requires a robust and fast trading mechanism to prevent any financial and energetic loss. Blockchain technology offers a trustless solution for peer-to-peer trading on a microgrid. The state-of-the-art solutions for energy trading with blockchain technology solves many problems of the centralized systems but lacks the energy and time efficiency. One of the substantial problems of these blockchain based solutions is the bulky and inefficient consensus algorithms that spend too much energy for validation and mining. The proposed model in this thesis aims to resolve this problem with a novel consensus algorithm that uses Ethereum smart contracts to complete a trade cycle. The model implies usage of smart meters and connection to the Internet to autonomously trade energy with the local microgrid and increase the financial revenue of prosumers. At the same time the model makes sure that the energy trade is complete and immutably recorded on multiple nodes without a need for proof-of-work.