Abstract: The transition to smart grids has revolutionized energy distribution, enabling more efficient and flexible power management through advanced communication and control systems. However, this interconnected structure makes smart grids vulnerable to cyberattacks, such as False Data Injection Attacks (FDIA), Distributed Denial of Service (DDoS) attacks, and data manipulation. These threats undermine the stability and reliability of the grid, and existing centralized security frameworks are often ill-equipped to address them due to their susceptibility to single points of failure and limited scalability. To overcome these challenges, this paper introduces a decentralized security framework that combines blockchain technology with machine learning (ML). The framework leverages blockchain to provide a transparent, immutable, and decentralized ledger, employing consensus mechanisms like Practical Byzantine Fault Tolerance (PBFT) or Proof of Authority (PoA) to ensure secure data validation. Alongside this, ML models, including Long Short-Term Memory (LSTM) networks and Convolutional Neural Networks (CNN), are used to detect anomalies in time-series data, such as FDIA, with high precision. Smart contracts embedded in the blockchain enable automated, real-time responses to threats, such as isolating compromised nodes or rerouting energy flows to maintain grid stability. Through simulations replicating real-world cyberattacks, the proposed framework demonstrated over 95% detection accuracy, a 30% reduction in response times, and enhanced computational efficiency with lower energy consumption. These results affirm the effectiveness of the framework as a scalable and resilient solution for modern smart grid security.
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