Optimizing IoT-Based Smart Grids with AI and Blockchain: A New Approach for Real-Time Energy Management

Abstract

The appearance of the Internet of Things (IoT) and the advancement of the energy systems provided a chance to the emergence of the smart grids which allow to arrange the effective management of the energy in real-time. Despite the smart grids being useful when the energy consumption distribution is optimized, they demand substantial challenges in terms of their scalability, security and effective analysis of millions of participated devices-generated data. Blockchain and Artificial Intelligence (AI) have been advanced as the remedy to such concerns. Blockchain can be effectively combined with AI in the work of smart grids with its decentralized immutable traceability and ability to forecast, suggest, and identify anomalies, and with data security, transparency, and integrity, on another level, making smart grids capable of functioning autonomously and efficiently. The feasibility of integrating AI and Blockchain to optimise smart grids on a platform of IoT with the view of employing them in the real-time management of energy is discussed in the paper. The study gives the benefits of using the AI in predictive maintenance, management and management of demand, and demand-response forecasting and demand-response loads, and the Blockchain in safe transaction relating to safe exchange of data and transparent transaction. A conceptual scheme of the way these technologies could be applied in smart grid systems is proposed, and after it, the discussion of the potential use of these technologies, their challenges, and solutions is presented. Based on the study, smart grids that rely on the IoT will be more efficient, secure, and scalable and combining them with the AI and the Blockchain may offer a chance of attaining sustainability in energy management within smart cities.