Can Blockchain Technology Help Us to Solve Energy Poverty?
This is one of the common questions coming out in the world after the popularity of cryptocurrencies like Bitcoin, Ethereum, Solana, etc. Though the phrase cryptocurrencies had made a significant impact in some of the aspects but on the similar side, it had also made a negative impact on some. From its introduction, blockchain had a great fashionableness.
Blockchain technology was introduced in the year 2008. After that, it is going great in every aspect.
How can blockchain technology help us to solve Energy Poverty? Energy Poverty is a major con in every part of the world. To answer the above question, you need to stick here to the last and know-how this modern technology can help improve the energy sector.
What is Energy Poverty?
Can you ever imagine that billions of dollars are spent annually on energy efficiency?
Energy is one of the most necessities that a living being needs. And as per the recent reports, there are even such areas where this energy is not equipped yet. What can be the justification for this? The only justifications that stand here are the high energy bills, low incomes, and low energy efficiency.
Therefore, in simple terms, Energy Poverty is a deprivation of access to modern energy services. This could be astonishing to know that energy poverty does exist in this modern world.
Now, how can energy poverty get solved by the modern technology called Blockchain technology?
Can Blockchain Technology change this?
Blockchain is a digital transaction technology that authorizes the secure performance of smart transactions or deals over many individual networks independently from prominent, central administrations, including banks, trading outlets, and energy utilities companies.
Other players in this network witness every transaction executed between the individuals. Every single detail is stacked on the digital ledgers permanently.
As we all know, that globe is now a digital place, and blockchain technology is already comfortable in developing digitized decentralized and decarbonized case applications that include automated bill payments, charging an electrical automobile and sharing cryptocurrencies, and so on.
Over the previous years, there have been explosive advancements and improvements in the research and development of Blockchain Technologies known as Decentralized Finance(DeFi) enables a whole financial system without any formal mediators, including banks.
Using the DeFi blockchains, money can be transmitted quickly and efficiently at a very less price around the whole earth.
A blockchain, in simple phrases, is about a secure public ledger of every single transaction. It is safe and secure as it is disseminated across a massive network of computers, which helps maintain the ledger.
This technology makes it difficult to corrupt the system or network by defrauding transactions. Blockchain was introduced in the year 2008 as a cryptographic ledger for the digital currency called Bitcoin.
Nonetheless, many conflate blockchain technology and cryptocurrency, the foundation of blockchain has been utilized in many applications that have nothing regarding the cryptocurrency, for example, Bitcoin. Blockchain training is available, which can help in knowing what the blockchain network is.
How can Blockchain Technology help to Solve Energy Poverty?
Blockchain technology performs as a smart transaction platform at a proper standardized level that extends to true consumers. Utilities and large grid operators evolve further efficiently by balancing the supply and demand in perfect time by employing the prosumers immediately.
It benefits the renewable energy integration into the grid in a cost-effective tone.
In some parts of the world, this technology is coming up with excellent results. A great and successful example is in New York City, where an energy-based company and technology-based company have joined their hands and generated a project where acquaintances can trade solar energy through blockchain technology. In the same way, there are many such projects where energy is exchanged by blockchain technology. Many people adore this and are introducing many new ways to make electricity.
The prime benefit of blockchain technology is that it encourages trust, decreases erroneousness, and maintains 100% security. Lastly, blockchains have been a great tool in saving millions of bucks.
Though this technology is not that popular in every part of the world, it can grow in the coming years. Blockchain professionals, blockchain training, can help in boosting this technology.
There are many such programs and platforms online that prefer to use blockchain technology to build an endurable and democratized finance model that helps solve energy poverty.
Indifference to the traditional type of finance, infrastructure is expensive and slow. DeFi facilitates the financial processes of a legal entity for ownership, funding, sharing the revenue, collection of revenue, etc.
These types of models enable people from anywhere in the world with all the types of currencies and any internet connections in financing renewable electricity.
In the future, blockchain technology can certify millions of energy devices such as water heaters, batteries, Solar PV electric vehicles, and more to transact with every individual at the distribution of electric power.
Blockchain technology use cases in the sector of energy:
Use cases of energy are:
- Utility Providers.
- Electricity Distribution.
- Oil, gas resources exploration, storage, transportation.
- Exchanging commodities.
Prime Benefits of Blockchain Technology in the energy sector.
The prime benefits of Blockchain Technology in the energy category are:
1. Reduces the high costs.
2. Environmental sustainability.
3. Peer-peer buying and selling of energy.
Yes, blockchain technology is a great option to solve energy poverty throughout the whole world. The benefits, features, and outcomes of blockchain technology in the energy sector help in peer-to-peer exchange, lower costs, wholesale distribution of energy, extra costs, corruptions, etc.
Lastly, after knowing what Energy Poverty and Blockchain are, we all are aware that Blockchain Technology can help in improving energy. The modern world is a great place to live. There is an advanced solution to every problem. The only thing is we need to understand, study, and implement for future profit.
Blockchain profession, blockchain training can help us know about this technology and implant it in our lives, which earns a great profit.