Energizing Industries with Blockchain
Over the past few years, the energy industry has been consistently catalyzed by innovative solutions such as electric vehicles, microgrids, rooftop solar panels and smart metering. But, have you ever wondered, what’s the latest upgrading technology in the energy sector?
Well, it’s the blockchain technology. It is the next emerging technology to accelerate the growth in the energy sector via its decentralized nature, transparency, real-time data management and cost-effective solutions.
In this article, we will be discussing how blockchain is making an impact on the energy sector?
How blockchain is transforming the energy sector?
Across all the features that blockchain offers in the energy sector, the most exciting ones are as stated below:-
Fair electricity distribution process
High electricity bills? This is the major concern of every individual. But by the use of blockchain, the end-user will be able to you directly purchase electricity from the grid at a cost that they desire.
Blockchain connects the end-user to the grid directly and eliminates the need for any intermediary party such as retailers. Therefore, the blockchain-based platform has the potential to reduce consumer bills by around 40%.
Peer-to-peer energy trading
As the demand for energy is growing, people are making their own electricity for their self-use by the use of microgrids. But sometimes, the energy produced by them exceeds their own demand. Thus, they are left with surplus energy.
Blockchain offers a platform for these energy producers to trade their surplus energy over a peer-to-peer energy trading platform.
Electricity data management
The intentional corruption and accidental clerical errors can be totally eliminated by the use of blockchain. Blockchain provides consumers better control over their energy sources.
Therefore, these consumers can track the energy usage easily, predict the market price and keep their personal data completely secure and safe.
Obstacles for blockchain in the energy sector
Although the above-mentioned features are quite appealing. But, the harsh reality is that blockchain is still struggling to find space in the energy sector.
It is all because people are less aware of this technology. They do not know the basics of blockchain and the potential that it holds.
Further, the blockchain architecture is quite difficult to develop, deploy and maintain. For the new users, making a transaction on the blockchain is quite challenging because it requires technical knowledge and great exposure.
“What the Internet did for communications, blockchain will do for trusted transactions, and the energy and utility industry is no exception,” -Stephen Callahan, Vice President, Energy, Environment & Utilities, Global Strategy, at IBM
“The prospect of being able to track particular electrons via a blockchain as they move onto or off the energy grid has captured the imagination of many companies” -Daniel Sieck of U.S. law firm Pepper Hamilton.
“All of this would save money and could transform the way we produce, store and consume electricity” -Steve Harley, DHL Energy president
Therefore, blockchain is the next big thing to make a strong impact on the energy sector. It’s a promising technology that gives users better control over the energy sources that they are using. However, at the same time, it must not be overlooked that blockchain is still out of the reach of many. It needs to bring a plug-and-play infrastructure to give more user-friendly experience to the people.
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