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Q-EnergyDEX: A Zero-Trust Distributed Energy Trading Framework Driven by Quantum Key Distribution and Blockchain

Ziqing Zhu

TL;DR

Q-EnergyDEX tackles cyber-physical security challenges in decentralized energy markets by integrating quantum key distribution with blockchain in a zero-trust architecture. The framework introduces Rate-Adap, Q-SAH, and PoR-Lite to deliver sustainable quantum randomness, low-latency secure handshakes, and fast probabilistic finality, respectively, while coupling market-clearing with entropy availability through a Stackelberg-constrained auction. Theoretical analyses and extensive simulations demonstrate stable randomness provisioning, convergence of the entropy-management mechanism, and practical finality times (roughly a few seconds) suitable for real-time electricity markets, with an economic evaluation showing negligible welfare distortion and improved resilience over TLS baselines. Overall, Q-EnergyDEX provides end-to-end quantum-secured infrastructure for large-scale decentralized energy trading, offering forward secrecy, information-theoretic security, and scalable performance for future quantum-era grids.

Abstract

The rapid decentralization and digitalization of local electricity markets have introduced new cyber-physical vulnerabilities, including key leakage, data tampering, and identity spoofing. Existing blockchain-based solutions provide transparency and traceability but still depend on classical cryptographic primitives that are vulnerable to quantum attacks. To address these challenges, this paper proposes Q-EnergyDEX, a zero-trust distributed energy trading framework driven by quantum key distribution and blockchain. The framework integrates physical-layer quantum randomness with market-level operations, providing an end-to-end quantum-secured infrastructure. A cloud-based Quantum Key Management Service continuously generates verifiable entropy and regulates key generation through a rate-adaptive algorithm to sustain high-quality randomness. A symmetric authentication protocol (Q-SAH) establishes secure and low-latency sessions, while the quantum-aided consensus mechanism (PoR-Lite) achieves probabilistic ledger finality within a few seconds. Furthermore, a Stackelberg-constrained bilateral auction couples market clearing with entropy availability, ensuring both economic efficiency and cryptographic security. Simulation results show that Q-EnergyDEX maintains robust key stability and near-optimal social welfare, demonstrating its feasibility for large-scale decentralized energy markets.

Q-EnergyDEX: A Zero-Trust Distributed Energy Trading Framework Driven by Quantum Key Distribution and Blockchain

TL;DR

Q-EnergyDEX tackles cyber-physical security challenges in decentralized energy markets by integrating quantum key distribution with blockchain in a zero-trust architecture. The framework introduces Rate-Adap, Q-SAH, and PoR-Lite to deliver sustainable quantum randomness, low-latency secure handshakes, and fast probabilistic finality, respectively, while coupling market-clearing with entropy availability through a Stackelberg-constrained auction. Theoretical analyses and extensive simulations demonstrate stable randomness provisioning, convergence of the entropy-management mechanism, and practical finality times (roughly a few seconds) suitable for real-time electricity markets, with an economic evaluation showing negligible welfare distortion and improved resilience over TLS baselines. Overall, Q-EnergyDEX provides end-to-end quantum-secured infrastructure for large-scale decentralized energy trading, offering forward secrecy, information-theoretic security, and scalable performance for future quantum-era grids.

Abstract

The rapid decentralization and digitalization of local electricity markets have introduced new cyber-physical vulnerabilities, including key leakage, data tampering, and identity spoofing. Existing blockchain-based solutions provide transparency and traceability but still depend on classical cryptographic primitives that are vulnerable to quantum attacks. To address these challenges, this paper proposes Q-EnergyDEX, a zero-trust distributed energy trading framework driven by quantum key distribution and blockchain. The framework integrates physical-layer quantum randomness with market-level operations, providing an end-to-end quantum-secured infrastructure. A cloud-based Quantum Key Management Service continuously generates verifiable entropy and regulates key generation through a rate-adaptive algorithm to sustain high-quality randomness. A symmetric authentication protocol (Q-SAH) establishes secure and low-latency sessions, while the quantum-aided consensus mechanism (PoR-Lite) achieves probabilistic ledger finality within a few seconds. Furthermore, a Stackelberg-constrained bilateral auction couples market clearing with entropy availability, ensuring both economic efficiency and cryptographic security. Simulation results show that Q-EnergyDEX maintains robust key stability and near-optimal social welfare, demonstrating its feasibility for large-scale decentralized energy markets.
Paper Structure (21 sections, 3 theorems, 52 equations, 7 figures, 2 tables)

This paper contains 21 sections, 3 theorems, 52 equations, 7 figures, 2 tables.

Key Result

Theorem 1

Consider a Birth--Death chain with finite capacity $M$, birth rate $\mu$ and death rate $\lambda k$, and let If $\rho < 1$ (i.e., the replenishment rate exceeds the consumption rate), then the Markov chain is irreducible and positive recurrent, and the unique steady-state distribution is As the capacity $M \to \infty$, the distribution converges to a geometric form $\pi_s = (1-\rho)\rho^s$, yiel

Figures (7)

  • Figure 1: Framework
  • Figure 2: Rate-Adapt: Time Series Simulation
  • Figure 3: Rate-Adapt vs. Fixed: Output Rate CDF
  • Figure 4: Q-SAH vs TLS: Handshake Latency Distribution
  • Figure 5: PoR-Lite Finality Depth Distribution
  • ...and 2 more figures

Theorems & Definitions (6)

  • Theorem 1: Steady-State Distribution and Empty-Pool Probability
  • proof
  • Proposition 2.1: Existence and Uniqueness of Stackelberg Equilibrium
  • proof
  • Theorem 2: Q‑SAH distinguishing advantage
  • proof : Proof sketch