Just like in the finance and health industry, blockchain has also found its way in the energy sector. Blockchain applications in the energy sector range from financing and transparency in the supply chain to grid transactions. Industry prospects and startups are already implementing blockchain. Continuing advancements will no doubt replace the outdated traditional systems entirely.
Blockchain technology in the energy sector has enabled the creation of auditable, automated and transparent records of produced power and consumption of the same.
The impeccable results are being duplicated in the gas and oil industry, putting in jeopardy, the renewal status of the traditional systems. The new cutting edge digital systems offer reliability besides being more secure and efficient.
According to recent studies, the transformative power of blockchain will continue renovating the energy sector. Global Market Insights projects that by 2025, blockchain and the energy sector’s partnership will be worth over $3 billion in value.
Distributed Ledger Technologies For Secure And Efficient Transactions
Crypto mining has been criticized as an energy waster and a possible accelerator of global warming when done on global scales. While this has been the case, integrated technology can be utilized positively in microgrids, a vital area in the energy industry.
Microgrids are the localized networks of energy production. They are independent of central power producing facilities and utility providers and can use wind and solar generated power to sell surplus power to the central grids and supply electricity to consumers.
Through the distributed ledger technology, suppliers in the microgrid will be able to receive faster and more manageable payments for electricity contribution. This has strengthened the decentralization of the power industry and boosted clean energy adoption. If the same is implemented on a larger scale by major utilities, we are bound to see a transformed energy sector with enhanced efficiency and security. In the end, consumers enjoy low prices reflected by efficiency.
The Energy Web Foundation Initiative
The Energy Web Foundation is a nonprofit organization that has been founded on an objective of bringing together the blockchain and energy community. EWF provides a scalable and open source blockchain platform specially designed for the functioning, governing and market requirements of the energy sector.
Over 100 affiliates in EWF inform the initiative of the needs and features in the energy sector. This in turns helps in the development of relevant applications and enables EWF to act as significant mediums in the promotion of blockchain to full-scale deployment.
Some of the affiliates that have joined the initiative include Total, Iberdrola and EnBW, a German utility firm. Its a sign of a growing interest by energy multinationals in blockchain technology advancement. Besides boosting the growth of energy companies inter-trading, the initiative also promotes trade among consumers at microgrid levels.
Addressing Challenges In Security And Supply Chain Management
Crypto startups and blockchain have raised more than $3.9 billion in venture capital funding. This is according to Diar, a blockchain research group. It’s almost three times what was invested in 2017. And we are beginning to see the fruits by the springing up of various industrial applications of blockchain.
The deployment of the distributed ledger technology will see a transformation from the old manual system to new blockchain enabled systems where data is made available to all parties at the same time. It, in turn, reduces the time needed to reconcile price and volume differences.
Blockchain will be critical for rapid growth in the energy sector. Watch this space