A Security Analysis of a Blockchain Based Decentralized Energy Trading Application

The utilization of Blockchain technology for decentralized energy trading is gaining momentum within the energy sector. This technological advancement has facilitated the creation of localized energy markets through the deployment of multiple distributed microgrids. Over recent years, numerous blockchain platforms have been under evaluation for their suitability in these systems. Among these platforms, Bitcoin has undergone comprehensive investigation for its compatibility with such setups. However, due to inherent security and privacy concerns, it has not been chosen as the preferred platform for implementing decentralized energy trading systems. This research paper identifies a security vulnerability within the transaction flow implementation. The paper begins with an overview of a decentralized energy trading system, followed by the formulation of a threat model and its corresponding mathematical framework. Subsequently, the paper presents two scenarios wherein inadequate security measures could be exploited to execute a double spending attack (DSA), aided by a Block Delay Technique.