Asset logging in the energy sector: a scalable blockchain-based data platform

Abstract

Abstract Due to a steeply growing number of energy assets, the increasingly decentralized and segmented energy sector fuels the potential for new digital use cases. In this paper, we focus our attention on the application field of asset logging, which addresses the collection, documentation, and usage of relevant asset data for direct or later verification. We identified a number of promising use cases that so far have not been implemented; supposedly due to the lack of a suitable technical infrastructure. Besides the high degree of complexity associated with various stakeholders and the diversity of assets involved, the main challenge we found in asset logging use cases is to guarantee the tamper-resistance and integrity of the stored data while meeting scalability, addressing cost requirements, and protecting sensitive data. Against this backdrop, we present a blockchain-based platform and argue that it can meet all identified requirements. Our proposed technical solution hierarchically aggregates data in Merkle trees and leverages Merkle proofs for the efficient and privacy-preserving verification of data integrity, thereby ensuring scalability even for highly frequent data logging. By connecting all stakeholders and assets involved on the platform through bilateral and authenticated communication channels and adding a blockchain as a shared foundation of trust, we implement a wide range of asset logging use cases and provide the basis for leveraging platform effects in future use cases that build on verifiable data. Along with the technical aspects of our solution, we discuss the challenges of its practical implementation in the energy sector and the next steps for testing in a regulatory sandbox approach.

Keywords

• Asset management
• Distributed ledger
• Energy asset
• Merkle proof
• Privacy
• Self-sovereign identity