CHAPTER I

Introduction

In an era where energy resources are becoming scarcer and the demand for
electricity is continually rising, the efficient utilization of power is of paramount
importance. Traditional centralized power grids struggle to meet the growing needs of
an increasingly connected world, leading to inefficiencies and environmental
concerns. However, the emergence of cutting-edge technologies such as machine
learning, blockchain, and decentralized edge computing presents an exciting
opportunity to address these challenges and pave the way for smart power
management.

In recent years, the proliferation of Internet of Things (IoT) devices and the
adoption of edge computing have revolutionized the way data is processed and
analyzed. However, this rapid growth has also led to significant challenges in
managing power consumption efficiently in decentralized edge computing
environments. Traditional centralized power management approaches are no longer
sufficient to handle the dynamic and distributed nature of edge computing. As a result,
there is a pressing need for innovative solutions that can optimize power usage, ensure
data integrity and security, and enable transparent decision-making processes.

This study aims to address these challenges by proposing a novel approach to

smart power management through the integration of machine learning techniques and
blockchain technology in decentralized edge computing networks. Machine learning
algorithms can analyze historical power consumption data, predict future power
demands, and optimize energy allocation based on patterns and trends. On the other
hand, blockchain technology provides a decentralized and secure framework for
transparent and tamper-proof power management transactions. By combining these
technologies, the study seeks to develop a robust and intelligent power management
system that not only optimizes energy consumption but also ensures trust,
transparency, and efficiency in decentralized edge computing environments.
 The integration of machine learning and blockchain in smart power
management offers several potential benefits. Firstly, machine learning algorithms
enable real-time analysis of power consumption, facilitating proactive decision-
making and adaptive power allocation based on changing workloads. This predictive
capability helps optimize energy usage, reduce waste, and improve overall system
efficiency. Secondly, the utilization of blockchain technology ensures secure and
transparent power management transactions. Through decentralized consensus
mechanisms and immutable transaction records, blockchain enhances trust among
participants and eliminates the need for intermediaries, enabling peer-to-peer energy
trading and efficient resource utilization.

The objectives of this study include developing machine learning-based

predictive models for optimizing power consumption in edge computing networks,
designing and implementing a blockchain-enabled decentralized network for secure
and transparent power management, evaluating the proposed solution in terms of
energy efficiency, cost savings, and system performance compared to traditional
approaches, and analyzing the feasibility and scalability of the proposed solution in
real-world edge computing scenarios.

The findings of this study have significant implications for various industries
and organizations relying on edge computing and IoT devices. By implementing a
smart power management system, businesses can achieve substantial energy savings,
reduce costs, and minimize their environmental footprint. Furthermore, the integration
of machine learning and blockchain technologies in power management opens up new
avenues for innovation, research, and development in the field. Overall, this study
aims to contribute to the advancement of intelligent and sustainable power
management in decentralized edge computing networks, paving the way for a more
efficient and greener future.
Background of the Study

The increasing demand for energy consumption, coupled with the growing
adoption of decentralized edge computing networks, presents significant challenges in
managing power resources efficiently. Traditional power management systems often
face limitations in optimizing energy usage, especially in dynamic and distributed
environments. This study aims to explore the potential of integrating machine learning
techniques and blockchain technology within a decentralized edge computing network
to enable smart power management.

Traditional power management systems involve management in all parts of a

network including production, transmission and distribution with the use of a central
government institution. This system follows a centralized and integrated management
wherein a centralized network is one in which all the nodes are connected to a single
point which controls all the communications within network.

Centralized networks also have some drawbacks. If the central server goes
down, all the users are off the network, when this occurs all of the user’s information
is exposed.

The use of decentralized network is useful in handling situations such as

predictions and management systems. Decentralized networks do not have a single
point of control. This allows users to control their data which means something can be
gone for one but still available for another. The data will not affect each other and will
still be functional when one data is changed or removed.

Machine learning refers to the development of algorithms and statistical

models that enable computer systems to learn and make predictions or decisions
without being explicitly programmed. In the context of power management, machine
learning techniques can be employed to analyze historical data, identify patterns, and
make intelligent decisions regarding energy usage, optimization, and prediction.

Machine learning algorithms play a crucial role in power management by

enabling intelligent decision-making and optimization based on historical data, real-
time sensor readings, and contextual information. These algorithms can analyze
complex patterns, make predictions, and optimize power allocation to improve energy
efficiency and overall system performance.
 Blockchain technology is a distributed and decentralized ledger system that
allows multiple parties to maintain a shared database without the need for
intermediaries. It provides transparency, security, and immutability to transactions. In
the context of power management, blockchain can be leveraged to create a
decentralized network where energy transactions, including production, consumption,
and distribution, can be securely recorded, verified, and managed.

Edge computing involves processing and analyzing data at or near the source
of its generation, rather than relying on a centralized cloud infrastructure. This
approach reduces latency, enhances real-time processing, and improves efficiency. In
the context of power management, edge computing can be used to enable local
processing of energy data, perform intelligent analysis, and make instant decisions on
energy consumption, production, and distribution.

The integration of these three technologies can develop a smart power

management system. By combining machine learning algorithms for data analysis,
blockchain for secure and transparent transactions, and decentralized edge computing
for real-time decision-making, the objective is to create an efficient, reliable, and
sustainable power management network. This network can optimize energy usage,
predict demand, facilitate peer-to-peer energy trading, and enhance overall power grid
stability and resilience.

The conventional centralized power management systems are not well-suited

for edge computing networks due to their limited scalability, vulnerability to single
points of failure, and inability to adapt to dynamic changes in energy demand and
supply. Moreover, the lack of transparency and trust in traditional systems raises
concerns about data integrity and security. To address these challenges, we propose
the integration of machine learning and blockchain technologies to enable smart
power management in a decentralized edge computing network.
Statement of the Problem

This study aims to determine the effectiveness of using a machine-learning

and blockchain-enabled decentralized edge computing network in power
management.

Objectives of the Study

The primary objective of this study is to develop a smart power management

system that leverages machine learning algorithms and blockchain technology within
a decentralized edge computing network.
The specific objectives include:
1. Designing and implementing a machine learning model to predict energy
demand and supply patterns in real-time.
2. Developing a blockchain-enabled decentralized network architecture for
secure and transparent energy trading and distribution.
3. Integrating the machine learning model and blockchain network to enable
autonomous decision-making and optimal power allocation.
4. Evaluating the performance of the proposed system in terms of energy
efficiency, cost savings, and system reliability.

Hypotheses

Null hypothesis:

The integration of machine learning algorithms, blockchain technology, and

decentralized edge computing networks in energy management systems does not
result in any significant improvements in energy efficiency, cost savings, or
environmental sustainability.

Alternative hypothesis:

The integration of machine learning algorithms, blockchain technology, and

decentralized edge computing networks in energy management systems results in
significant improvements in energy efficiency, cost savings, and environmental
sustainability.

Significance of the Study

The study of smart power conservation through a machine learning and

blockchain-enabled decentralized edge computing network holds several significant
implications and potential benefits for various stakeholders. Here are some of the key
aspects and groups that can benefit from this study:

Energy Efficiency: The primary goal of this study is to conserve power and
enhance energy efficiency. By employing machine learning algorithms and leveraging
decentralized edge computing, it becomes possible to optimize power consumption,
reduce wastage, and improve overall energy efficiency. This has direct implications
for reducing carbon emissions and promoting sustainable development.

Consumers: Individuals and households stand to benefit from smart power

conservation through reduced energy bills. By optimizing power usage and avoiding
unnecessary consumption, consumers can save money while contributing to
environmental sustainability. Additionally, by utilizing machine learning and
blockchain, consumers can have better insights into their energy usage patterns,
enabling them to make informed decisions about their consumption habits.

Businesses and Industries: Industrial and commercial sectors can significantly

benefit from the study's findings. By implementing a machine learning and
blockchain-enabled decentralized edge computing network, businesses can optimize
their energy consumption, leading to cost savings. This can be particularly
advantageous for energy-intensive industries such as manufacturing, data centers, and
transportation. Moreover, adopting sustainable energy practices can enhance corporate
social responsibility and reputation.

Research and Innovation: The study contributes to the broader field of

research on energy conservation, machine learning, blockchain, and decentralized
computing. The results can serve as a foundation for further advancements in these
domains, leading to the development of new algorithms, technologies, and
frameworks for smart energy management.
 Overall, the significance of this study lies in its potential to revolutionize
power conservation practices, optimize energy consumption, and contribute to
sustainable development while benefiting consumers, businesses and industries, and
the research community.

Scope and Delimitations of the Study

This study will be conducted on November 2022 to January 2023 at Jose

Panganiban National High School (JPNHS). In conducting this study, the Smart
power management through a machine learning and blockchain-enabled decentralized
edge computing network will be developed by an Information Technology
professional to see if there’s any improvements in energy efficiency, cost savings, or
environmental sustainability with the use of the app.

This study focuses on the development and evaluation of a prototype system

for smart power management in a decentralized edge computing network. The
research is limited to the application of machine learning algorithms for energy
demand and supply prediction and the use of blockchain for secure and transparent
energy trading. While the proposed solution addresses many challenges in power
management, there may be additional factors and complexities that require further
research and refinement.