“Benjamin Franklin may have discovered electricity, but it was a man who invented the meter who made the money” – Earl Wilson
Electricity is used to provide heat or to make machines work. It is generated in one massive centralized grid which then travels as transmissions straight to our homes. With demands for renewable energy and even higher consumption, the Energy industry has started to implement Blockchain Technology in its network of peers. Blockchain offers the consumers of the energy sector the following:
- Economization: with fewer checkpoints along the way, the consumer pays less than before.
- Consumer Control: they don’t have to be dependent on corporate companies in times of power outages. They can create Micro Grids within their communities and sustain their energy usage.
- Security: Energy which is sourced from massive grids, has records of its end consumers at many places. Security becomes a big issue as consumer identity can be compromised. On a blockchain, such details are secured.
Blockchains can’t be tampered with. The longer a blockchain the more surety of it being honest. It can be used to store data of the energy units transmitted and smart contracts of employees etc. Data on blockchains can’t be tampered with or be altered which is resulting in lesser frauds. The billing to the consumer is transparent and precise, down to the last unit used.
The merging of these 2 sectors is taking place all over the globe. From China to Canada, many companies are now joining in the trend.
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1) Energy Blockchain Laboratory: This company focuses on providing digital help to the energy sector. With the aim of covering energy production, consumption, trading, management and other links they are all set on their way to creating a green environment for all. Based in China and with offices all over the globe, Energy Blockchain Laboratory gets Kudos from us for their efforts.
2) Grid Singularity: A decentralized energy exchange platform, based in Germany. They provide services like support of valuable applications that are designed and used by diverse energy market participants like regulators to operators, investors, traders and consumers. Blockchain has enabled them to create a grid management system that helps them in everyday easy transmissions.
The electricity sector is based on massive, centralized power plants that generate power that is sent over long distances with transmission and distribution lines. In recent years, though, a growing number of smaller “distributed” power generators and storage systems, like rooftop solar panels and electric-vehicle batteries, have been connecting to the grid. This is creating plenty of room for accounting errors that can range from honest mistakes to outright fraud. A set parameter is a must.
A Ray of Hope:
Blockchain technology can help track renewable-energy certificates which helps solve data management challenges in the electricity sector without disrupting business. There shall soon be a time when the blockchain enabled energy sector shall be a norm for every household or business unit. Many believe that, this technology could help transform the very architecture of the grid itself.