A mobile energy trading scheme based on Lightning Network

Abstract

Current blockchain‐based energy trading models raise serious concerns regarding the high and capped transaction latency and expensive service charges. To solve these problems, In this article, we combine Lightning Network (LN) and smart contract to present a mobile energy trading scheme based on LN. The focal point of the scheme lies in transfer of value occurs off‐blockchain, which addresses the problem of transaction latency. Next, to solve the security of proposed scheme, we design a mechanism to delivery secret R. Participants exchange some parameters to calculate R instead of delivery it directly. The found security is guaranteed by committing funds into a multi‐signature address in proposed scheme. Then, we conduct a comprehensive experiment to evaluate the proposed scheme. The simulation and analysis results show that the proposed scheme is efficient than traditional trading. In addition, we analyze our entire scheme and conclude that it defenses anti‐tampering attacks and replay attack capacity effectively.

A Review of the Lightning Network’s Evolution: Unraveling Its Present State and the Emergence of Disruptive Digital Business Models

“…For example, some authors have focused on the LN's development, potential non-monetary uses, along with legal challenges that may impact LN adoption [13]. Other authors discuss recent advancements and applications of the LN in various domains such as international remittances, energy trading, decentralized trade finance, micropayments, consumer IoT devices, food safety management and securities settlement [14][15][16][17][18][19][20][21]. However, it is not clear from the available literature the added value brought forward by the LN as well as the various challenges underpinning the adoption of the LN by merchants and the business sector.…”

“…Figure 5 provides insights into the research focus of the publications. The majority of the publications focus on network topology and modeling (19) followed by security and privacy (22), performance and optimization (15) and use cases and applications (8). This indicates that network topology and modeling and security and privacy are the two most prominent research areas so far.…”

“…Meanwhile, Ref. [15] propose a mobile energy trading scheme based on the LN and smart contracts, addressing transaction latency and security concerns. In the realm of decentralized trade finance, Ref.…”

“…In the energy market, financial inefficiencies hinder progress, with payments for electricity taking longer to process than the electricity flow itself. The LN and smart contracts could significantly reduce these inefficiencies by allowing for instant payment routing and M2M payments for electricity consumption [15]. A mobile energy trading scheme utilizing the LN and smart contracts has been proposed, featuring an off-blockchain exchange of value to eliminate transaction lag [15].…”

“…The LN and smart contracts could significantly reduce these inefficiencies by allowing for instant payment routing and M2M payments for electricity consumption [15]. A mobile energy trading scheme utilizing the LN and smart contracts has been proposed, featuring an off-blockchain exchange of value to eliminate transaction lag [15]. Additionally, a study examined the requirements of various blockchain technologies for IoT micro-payments, benchmarking the LN's performance against similar solutions, integrating it into an existing IoT ecosystem and designing a novel algorithm for payment channel fee reduction [20].…”