  Transactive energy plays a key role in the operation and energy management of
future power systems. However, the conventional operational mechanism, which
follows a centralized design, is often less secure, vulnerable to malicious
behaviors, and suffers from privacy leakage. In this work, we introduce
blockchain technology in transactive energy to address these challenges.
Specifically, we develop a novel blockchain-based transactive energy framework
for prosumers and design a decentralized energy trading algorithm that matches
the operation of the underlying blockchain system. We prove that the trading
algorithm improves the individual benefit and guarantees the socially optimal
performance, and thus incentivizes prosumers to join the transactive energy
platform. Moreover, we evaluate the feasibility of the transactive energy
platform throughout the implementation of a small-scale network of Internet of
Things (IoT) devices and extensive simulations using real-world data. Our
results show that this blockchain-based transactive energy platform is feasible
in practice, and the decentralized trading algorithm reduces the user's
individual cost by up to 77% and lowers the overall cost by 24%.
