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The current centralized model of the electricity market is not efficient in performing distributed energy transactions required for the transactive smart grid. One of the prominent solutions to this issue is to integrate blockchain technologies, which promise transparent, tamper-proof, and secure transaction systems specifically suitable for the decentralized and distributed energy markets. Blockchain has already been shown to successfully operate in a microgrid peer-to-peer (P2P) energy market. The prime determinant of different blockchain implementations is the consensus algorithm they use to reach consensus on which blocks/transactions to accept as valid in a distributed environment. Although different blockchain implementations have been proposed independently for P2P energy market in the microgrid, quantitative experimental analyses and comparison of the consensus algorithms that the different blockchains may use for energy markets, has not been studied. Identifying the right consensus algorithm to use is essential for scalability and operation of the energy market. To this end, we evaluate three popular consensus algorithms: (i) proof of work (PoW), (ii) proof of authority (PoA), and (iii) Istanbul Byzantine fault tolerance (IBFT), running them on a network of nodes set up using a network of docker nodes to form a microgrid energy market. Using a series of double auctions, we assess each algorithm's viability using different metrics, such as time to reach consensus and scalability. The results indicate that PoA is the most efficient and scalable consensus algorithm to hold double auctions in the smart grid. We also identified the minimum hardware specification necessary for devices such as smart meters, which may run these consensus algorithms 

The current centralized model of the electricity market is not efficient in performing distributed energy transactions required for the transactive smart grid. One of the prominent solutions to this issue is to integrate blockchain technologies, which promise transparent, tamper-proof, and secure transaction systems specifically suitable for the decentralized and distributed energy markets. Blockchain has already been shown to successfully operate in a microgrid peer-to-peer (P2P) energy market. The prime determinant of different blockchain implementations is the consensus algorithm they use to reach consensus on which blocks/transactions to accept as valid in a distributed environment. Although different blockchain implementations have been proposed independently for P2P energy market in the microgrid, quantitative experimental analyses and comparison of the consensus algorithms that the different blockchains may use for energy markets, has not been studied. Identifying the right consensus algorithm to use is essential for scalability and operation of the energy market. To this end, we evaluate three popular consensus algorithms: (i) proof of work (PoW), (ii) proof of authority (PoA), and (iii) Istanbul Byzantine fault tolerance (IBFT), running them on a network of nodes set up using a network of docker nodes to form a microgrid energy market. Using a series of double auctions, we assess each algorithm’s viability using different metrics, such as time to reach consensus and scalability. The results indicate that PoA is the most efficient and scalable consensus algorithm to hold double auctions in the smart grid. We also identified the minimum hardware specification necessary for devices such as smart meters, which may run these consensus algorithms.