IOTA Tangle DLT for SUSEE smart grid platform

IOTA’s Tangle distributed ledger technology is to form the data structure for the Secure Sensor Platforms for Smart Energy Networks (SUSEE) initiative.

The project being led by German IT start-up mCloud Systems with the distribution system operator SWO Netz is aimed to develop a conceptual design for a scalable solution for reliable and secure data transmission and processing in sensor networks, in particular for smart metering applications.

IOTA’s Tangle was developed as an alternative to overcome the cost and scalability limitations of blockchain. Tangle uses a ‘directed acyclic graph’ (DAG) data structure, i.e. a unidirectional data flow, which allows transactions to be added in parallel, unlike blockchain alternatives in which the data structure is sequential and linked historically.

With even the smaller DSOs in Germany having tens of thousands of end customers, a data solution must be scalable and able to support a large number of edge devices and sensors.

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The platform is being developed with the LoRaWAN wireless network protocol as well as the self-configuring WiBACK backhaul network.

Other requirements are a high level of reliability and security including data encryption and a low cost from both the CAPEX and especially OPEX perspectives.

“The combination of cutting-edge IoT technologies and protocols enables an unprecedented level of confidence in the wireless transmission of information,” comments consortium lead Andreas Baumgartner, CEO at mCloud Systems.

“Together with the IOTA Foundation and our collaborative partners, we are working on a technical solution that provides a secure and scalable foundation for infrastructure applications through state-of-the-art communications technology.”

The SUSEE project is being supported with €2.6 million (US$3.1 million) in funding from Germany’s Federal Ministry for Economy and Energy (BMWI).

Other members in the project consortium are the two German research institutes Fraunhofer FIT/IPT, the university TU Chemnitz, and the SMEs peerOS, which develops modular sensor systems, and TIP, which supplies industrial products.

Holger Köther, Director of Partnerships at the IOTA Foundation, says that ensuring data integrity and data management encrypted and securely directly from the edge is the core DNA of IOTA.

“I am looking forward to working as part of a team of so many forward-thinking organisations, to demonstrate how IOTA is being used as a security and integrity layer for upcoming applications, where a distributed resilient IT infrastructure against attacks is key.”

The project was launched in May and runs for three years to April 2024.

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