DOE Office of Electricity — Digitizing Utilities Prize Round 3: Resilient Grid Innovation
Phase 1 Deadline: April 9, 2026 | Prize Pool: $2.4M
The Grid Security Problem
Critical infrastructure runs on credentials that can be stolen
Electric utilities face a compounding threat: the same digital transformation that unlocks grid intelligence — SCADA systems, synchrophasor networks, DER integrations, substation automation — expands the attack surface exponentially. Traditional security models rely on credential databases and perimeter firewalls that attackers have learned to circumvent.
Meanwhile, cross-utility data sharing is effectively paralyzed. Utilities hold data that, in aggregate, would dramatically improve reliability and threat detection — but privacy regulations, competitive concerns, and lack of secure infrastructure prevent collaboration. The result: every utility defends alone, and threat actors exploit the seams.
Legacy zero-trust architectures (Tailscale, Okta, VPN overlays) reduce but do not eliminate the attack surface. A compromised credential still means a compromised network. Grid communications during extreme events — precisely when security matters most — depend on infrastructure that was never designed to survive compound disruptions.
The Protocol
Six properties that make SSCM uniquely suited to critical infrastructure
Self-Sovereign Cryptographic Mesh (SSCM) derives all identity, trust, and connectivity from a single cryptographic seed. No credential database. No shared secrets to exfiltrate. No central server to compromise.
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Credential elimination
Passwords and tokens are never transmitted or stored on any network-accessible system. Authentication is cryptographic proof-of-key, not secret exchange — so there is nothing on the wire to intercept and nothing in a database to breach.
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Beyond end-to-end encryption
Encryption is not just in transit. The full life cycles of connections, sessions, relationships, identities, devices, data stores, applications, and systems are enclosed in layered cryptography from user to user and woven together across time into a fully continuous mesh. No cleartext exists between any two points where data is at use, including on the infrastructure nodes themselves.
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Legacy access via ZTNA mesh overlays
Existing SCADA systems, historians, and OT infrastructure are accessed through mesh overlay adapters using Zero Trust Network Access principles. Legacy systems gain modern security posture without modification or rip-and-replace.
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Phishing and social engineering resistance
Because credentials are never exchanged between parties, there is nothing for an operator to be tricked into revealing. Phishing, credential stuffing, and SIM-swap attacks against grid personnel become structurally inert. Not to mention cryptographic assurance of who you are talking to in the first place.
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Encryption to offline destination keys
Sensitive data — sensor readings, operational logs, configuration — can be encrypted at the point of collection to offline destination keys held in cold storage or hardware security modules. Even full network penetration cannot expose data that was never decryptable on the network.
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High-security operations: airgap and hardware key support
Full support for YubiKey and equivalent hardware security devices. Airgapped operational modes are first-class — the protocol is designed from the ground up for environments where physical security boundaries are as important as network security.
NAT-penetrating P2P connectivity means these guarantees hold across degraded backhaul, congested 5G links, and loss-of-connectivity scenarios during extreme weather events. OAuth2 local adapter bridges the mesh to existing utility IT stacks. Apache 2 licensed under a 501(c)(3) — open forever.
★ Bonus Prize Target
Competition Fit
A direct answer to the Federated Grid Data Security Bonus Prize
DOE's bonus prize rewards technology that enables "secure, collaborative, and privacy-preserving learning across grid systems." SSCM is purpose-built for exactly this: multiple utilities can train shared anomaly detection and cybersecurity models without ever transmitting raw operational data outside their own perimeter.
- No credentials on the network — phishing, credential theft, and man-in-the-middle attacks against grid operators are structurally eliminated, not just mitigated
- Federated threat intelligence — onion routing and unlinkable relationships let utilities train shared anomaly detection models without exposing SCADA data, network topology, or customer information
- Offline-key data encryption — sensor readings and operational logs encrypted to cold-storage keys are unreadable even under full network penetration; ideal for protecting synchrophasor and event signature datasets
- Legacy OT/IT access via ZTNA overlays — existing historian, EMS, and SCADA systems join the secure mesh without modification; no rip-and-replace required
- Compound event resilience — NAT-penetrating P2P with hardware key support (YubiKey, HSM, airgap) maintains authenticated comms when centralized infrastructure fails during simultaneous physical and cyber disruption
- Cryptographic provenance by default — every message is signed at origin; data poisoning and spoofing attacks against shared AI/ML models are detectable at the protocol layer
Where We Are Now
After 15+ months of R&D, Phase 0 launched Christmas Eve 2025. Phase 1 (identity & trust layer) ships Q1 2026. An active pilot is underway with Abundant Mines. The protocol is in production, dogfooded by early adopters, and on a clear roadmap to complete protocol deployment by mid-2027.
For the competition timeline: a teamed submission can demonstrate a working cryptographic mesh securing real grid sensor data by the Progress phase demo day.
Why This Wins
Every other proposed approach to grid cybersecurity still relies on a server someone can breach. SSCM eliminates that attack surface architecturally — not through better perimeter defense, but by making perimeters unnecessary. It is the only open-protocol solution that simultaneously addresses secure grid communications, federated data sharing, and zero-trust identity without a central credential database.
Market validation: Tailscale shares some surface aspects — encrypted mesh networking, developer-led adoption — and reached a $1B valuation in four years starting with three engineers. SSCM follows the same bottom-up adoption path, but operates on fundamentally different cryptographic principles: no central coordination server, no credential store, no revocable trust anchor. The security guarantees Tailscale cannot offer are exactly what critical infrastructure requires.
The Team
Luke Arno
CEO / CTO — Coin Operated Inc.
27 years building distributed systems and secure platforms across multiple infrastructure startups. The SSCM protocol is the culmination of this work.
Sam Larson
COO — Coin Operated Inc.
Stanford. DOJ Antitrust. 15 years fintech & data. Scaled sales at YipitData to market dominance. Brings enterprise deployment and partnership expertise.