Possible use cases for blockchain in the energy sector
Many companies are currently developing blockchain applications for the energy sector. Moreover, international energy companies are establishing blockchain-based projects as well. All these applications are designed to create a direct connection between the suppliers and consumers of energy. Blockchain technology may become the biggest player for a further decentralization of the energy systems.
As we already know, the blockchain technology has gained a lot of popularity in the last years. The unique features of the blockchain create new opportunities for different sectors, including the energy sector. The decentralized storage of transaction data strengths security and ensures independence from a government or any other intermediary.
I have previously talked about this topic, but there are some promising use cases of blockchain in the energy sector that are worth mentioning.
So, what are the possible use cases for the blockchain in the energy sector?
Blockchain technology has an extensive range of use. For example, blockchain can help us to make payments with cryptocurrencies, to verify transactions, to conclude digital contracts, to execute trades, to manage digital content, etc. The next big step is believed to involve smart contracts.
The new blockchain-based business models no longer require third-party intermediaries. Blockchain systems initiate and send transactions while recording them in a safe and secure way. All transactions made between individual parties are directly executed through a peer-to-peer network. A decentralized energy sector and supply system can be considered to represent the ultimate level of energy-related blockchain applications.
The blockchain technology is capable of establishing a decentralized energy supply system. There is a huge possibility that blockchain will directly connect the energy suppliers with the energy consumers, and it will simplify today’s system where each party in the energy sector operates on different levels.
Blockchain technology enables the energy sector to be controlled through smart contracts. Smart contracts would signal to the system what transactions should be initiated in particular moment. This would be based on predefined rules created to make sure that all energy flows are automatically controlled, in order to create a balance between energy supply and demand. Smart contracts can ensure that the proper amount of energy is delivered into storage automatically.
Having blockchain in the energy sector will mean that all energy flows and business activities will be safely and securely recorded on a decentralized storage of all data. The combination of smart contracts controlling the system and distributed ledgers securely documenting all activities would also have a direct impact on network and storage operations.
A decentralized energy transaction and supply system has a lot of potential to become the key player for the future. Energy that is generated in distributed generation facilities would be transported to end users via smaller networks. Smart meters would measure the amount of energy produced and consumed, while energy-trading activities and cryptocurrency payments would be controlled by smart contracts and executed through the blockchain. The consumers could use cryptocurrencies to pay for the supplied energy.
Traders buy and sell energy on the exchanges and banks act as intermediaries that handle the transactions made by the parties involved. On the other side, blockchain-based energy processes would no longer require third parties such as energy companies or banks for transactions. A decentralised energy-transaction and supply system would empower consumers to manage their own electricity supply contracts and consumption data.
There is a company that works for enabling these use cases of blockchain in the energy sector, called Energy Premier. It is a blockchain-based electricity trading platform that enables users to trade electricity in a faster, safer, and cheaper way, with the help of the blockchain technology. It is the first platform that enables direct access to the retail energy market to suppliers by eliminating multiple intermediaries and taking out distance as a limiting factor to trade, which then results in lower prices for the consumers.
The platform utilizes blockchain and smart contracts that bring flexibility and transparency, eliminating corruption. The use of the blockchain technology makes Energy Premier completely trustworthy and reliable place. The blockchain not only ensures that tokens that are sent to a recipient are delivered within seconds without third parties, but also provides added security due to smart contracts embedded in the process — eliminating potential for fraud.
Check out what they do, and participate in the pre-sale and the upcoming ICO!
The platform is already live at www.EnergyPremier.com and companies are already creating accounts to use it. To do this, they have also assembled a strong team including members from McKinsey, Merrill Lynch, Google, Rothschild, AT Kearney, Oliver Wyman and other companies.
Thank you for reading.
