An Alternative Paradigm for Developing and Pricing Storage on Smart Contract Platforms

Smart contract platforms facilitate the development of important and diverse distributed applications in a simple manner. This simplicity stems from the inherent utility of employing the state of smart contracts to store, query and verify the validity of application data. In Ethereum, data storage incurs an underpriced, non-recurring, predefined fee. Furthermore, as there is no incentive for freeing or minimizing the state of smart contracts, Ethereum is faced with a tragedy of the commons problem with regards to its monotonically increasing state. This issue, if left unchecked, may lead to centralization and directly impact Ethereum's security and longevity. In this work, we introduce an alternative paradigm for developing smart contracts in which their state is of constant size and facilitates the verification of application data that are stored to and queried from an external, potentially unreliable, storage network. This approach is relevant for a wide range of applications, such as any key-value store. We evaluate our approach by adapting the most widely deployed standard for fungible tokens, i.e., the ERC20 token standard. We show that Ethereum's current cost model penalizes our approach, even though it minimizes the overhead to Ethereum's state and aligns well with Ethereum's future. We address Ethereum's monotonically increasing state in a two-fold manner. First, we introduce recurring fees that are proportional to the state of smart contracts and adjustable by the miners that maintain the network. Second, we propose a scheme where the cost of storage-related operations reflects the effort that miners have to expend to execute them. Lastly, we show that under such a pricing scheme that encourages economy in the state consumed by smart contracts, our ERC20 token adaptation reduces the incurred transaction fees by up to an order of magnitude.Comment: 6 pages, 2 figures, DAPPCON 201

Radical prosumer innovations in the electricity sector and the impact on prosumer regulation

The electricity sector is in a transition towards a Smart Energy System where the roles of private and institutional actors are evolving. This work deals with the influence of some technological innovations, enabling social innovations such as peer to peer trading and the participation in local energy collectives, on the regulation of the rights and obligations of consumers and prosumers in the electricity sector. It identifies the main radical innovations in the electricity market and analyses the legal and related non-legal obstacles that may impede the empowerment of energy consumers and prosumers. Some recommendations are provided to ensure that consumers and prosumers are empowered and can benefit from these new technological and social innovations in the electricity market. The recommendations relate to an accurate definition of prosumers and active consumers, the integration of demand response, the evolving role of distribution network operators and the birth of peer-to-peer trading

A transition to knowledge-intensive service activities in power industry: A theoretical framework

The current smart energy transition is accompanied by major transformations in the aspects of technology, market, and organization. The intensive adoption of digital technology in energy production, the rapid spread of distributed generation, micro-grids and energy storage and accumulation solutions, and an ever-increasing integration between the energy sector and other critical infrastructure sectors have brought about fundament changes in the relationships between energy companies and the market. This creates a strong demand for versatile support services for these processes. The article makes an attempt to construct a conceptual framework for and to outline the tasks and goals of knowledge-intensive services in the new energy industry. The author provides justification for the key properties of knowledge-intensive services that include adaptability, the capability of self-tuning, a wide use of information and telecommunication technologies, a tendency to use a pro-active approach to systems and process management, and the availability of staff with outstanding qualifications. The author has developed a conceptual model of knowledge-intensive services in the energy sector that makes it possible to group the service segments by the dimensions of “energy market optimization and customer relations”, “asset lifecycle management”, “organizational flexibility of energy market agents”. Recommendations are given as to how to develop knowledge-intensive service activities in energy companies, including through the creation of corporate platforms and smart partnerships with universities and science. © 2019 WIT PressACKNOWLEDGEMENT The work was supported by Act 211 of the Government of the Russian Federation, contract № 02.A03.21.0006

Review of blockchain-based distributed energy: Implications for institutional development

The future of energy is complex, with fluctuating renewable resources in increasingly distributed systems. It is suggested that blockchain technology is a timely innovation with potential to facilitate this future. Peer-to-peer (P2P) microgrids can support renewable energy as well as economically empower consumers and prosumers. However, the rapid development of blockchain and prospects for P2P energy networks is coupled with several grey areas in the institutional landscape. The purpose of this paper is to holistically explore potential challenges of blockchain-based P2P microgrids, and propose practical implications for institutional development as well as academia. An analytical framework for P2P microgrids is developed based on literature review as well as expert interviews. The framework incorporates 1) Technological, 2) Economic, 3) Social, 4) Environmental and 5) Institutional dimensions. Directions for future work in practical and academic contexts are identified. It is suggested that bridging the gap from technological to institutional readiness would require the incorporation of all dimensions as well as their inter-relatedness. Gradual institutional change leveraging community-building and regulatory sandbox approaches are proposed as potential pathways in incorporating this multi-dimensionality, reducing cross-sectoral silos, and facilitating interoperability between current and future systems. By offering insight through holistic conceptualization, this paper aims to contribute to expanding research in building the pillars of a more substantiated institutional arch for blockchain in the energy sector

Local Market Mechanisms: how Local Markets can shape the Energy Transition

Europe has embarked on a journey towards a zero-emission system, with the power system at its core. From electricity generation to electric vehicles, the European power system must transform into an interconnected, intelligent network. To achieve this vision, active user participation is crucial, ensuring transparency, efficiency, and inclusivity. Thus, Europe has increasingly focused on the concept of markets in all their facets. This thesis seeks to answer the following questions: How can markets, often considered abstract and accessible only to high-level users, be integrated for end-users? How can market mechanisms be leveraged across various phases of the electrical system? Why is a market- driven approach essential for solving network congestions and even influencing planning? These questions shape the core of this research. The analysis unfolds in three layers, each aligned with milestones leading to 2050. The first explores how market mechanisms can be integrated into system operator development plans, enhancing system resilience in the face of changes. In this regard, this step addresses the question of how a market can be integrated into the development plans of a network and how network planning can account for uncertainties. Finally, the analysis highlights the importance of sector coupling in network planning, proposing a study in which various energy vectors lead to a multi-energy system. According to the roadmap to 2030, this layer demonstrates how markets can manage several components of the gas and electrical network. Finally, even though the robust optimisation increases the final cost in the market, it allows to cover the system operator from uncertainties. The second step delves into the concept of network congestion. While congestion management is primarily the domain of operators, it explores how technical and economic collaboration between operators and system users, via flexibility markets, can enhance resilience amid demand uncertainties and aggressive market behaviours. In addition to flexibility markets, other congestion markets are proposed, some radically different, like locational marginal pricing, and others more innovative, such as redispatching markets for distribution. Building upon the first analysis, this section addresses questions of how various energy vectors can be used not only to meet demand but also to manage the uncertainties associated with each resource. Consequently, this second part revisits the concept of sector coupling, demonstrating how various energy vectors can be managed through flexibility markets to resolve network congestion while simultaneously handling uncertainties related to different vectors. The results demonstrate the usefulness of the flexibility market in managing the sector coupling and the uncertainties related to several energy vectors. The third and most innovative step proposes energy and service markets for low-voltage users, employing distributed ledger technology. Since this step highlights topics that are currently too innovative to be realized, this third section offers a comparative study between centralised and decentralised markets using blockchain technology, highlighting which aspects of distributed ledger technology deserve attention and which aspects of low-voltage markets need revision. The results show that the blockchain technology is still in the early stage of its evolution, and several improvements are needed to fully apply this technology into real-world applications. To sum up, this thesis explores the evolving role of markets in the energy transition. Its insights are aimed at assisting system operators and network planners in effectively integrating market mechanisms at all levels of