The transformation from the power grid to the smart grid has become one of the greatest technological evolutions in the last few years. The reliability of electric supply is the most credible feature wanted by both the developing and developed countries. The smart grid enables us to reduce the emission of carbon as there is an integration of renewable energy resources in it. The smart grid is a system that monitors and manages energy use through a network of computers and power infrastructures. The smart grid is an interlink combining different domains and it has to withstand the following threats such as natural disasters, intentional attacks, financial risk hackers, transportation, storage, and all other personal or information leak problems. It also includes Smart meter problems such as privacy invasion, reliability, overcharging, hacking and other health issues. To overcome the above issues traditional security analysis approaches such as certification and internal quality assurance are essential, but they fall short when it comes to critical systems. To evaluate smart grid systems, industry and government must be innovative. Even though services such as Google Power Meter are opt-in, customers have little control over how power data is used by utility providers. To address these issues with smart grid applications, various algorithms can be proposed.