HomeTECHNOLOGYWhat Role Do Blockchains Play In Energy?

What Role Do Blockchains Play In Energy?

For some years, there has been a lot of talk in the digital and techno-financial fields of blockchain technology and its possible uses. This ” chain of blocks ” uses the characteristics of a computer network of nodes and allows for the administration and implementation, securely, of a register that includes data and information (such as transactions) in an open, shared, and sorted way without the need for a central control and verification body. 

Today new channels and possibilities are opening up to create, through blockchain solutions, a new market for energy where citizens and businesses, through various forms of “networks,” can exchange excess kilowatts/hour autonomously without having to go through the energy manager. A new conception and diffusion of the energy system and connection between producers and users in the name of technological innovation.

The Blockchain In The Energy Sector

The world of energy has embarked on the path towards renewal, given the growing global attention towards more sustainable management of resources and environmental protection. On the one hand, the journey began with an approach oriented towards experimentation and the search for alternative energy sources. 

On the other, with the analysis of new procedures to reduce consumption. Attention has remained focused on the centralized logic of the “classical” energy model. Operators in the sector have maintained their fundamental role as managers of the network and energy sources. With the entry into the free market of numerous small producers, a new evolution of the concept of “grid” begins. A series of opportunities thus emerges:

  1. the possibility of allowing end users, citizens, or businesses to have greater autonomy in their energy needs (production and consumption);
  2. the opportunity to extend types of digital innovation in the management of loads and consumption;
  3. new ways of exchanging and trading energy;
  4. the opportunity to get new devices to balance networks.

The Blockchain And The Energy Market

Using the blockchain system for energy efficiency represents a real revolution, given that consumers become active protagonists of the network by exchanging energy. How does all this happen? It is possible to sell or buy electricity automatically, based on the costs and the different needs of each specific home. All thanks to simple and intuitive applications on smartphones. These allow the blockchain to transmit energy from one place to another and carry out transactions.

Ultimately, the blockchain coordinates supply and demand (energy producers and consumers) with essential benefits for both parties. It also encourages more responsible and efficient control of consumption, which is tracked and allows more excellent verification of peaks and network problems. Finally, there is a reduction in operating costs and waste. It is, therefore, an entire network that will enable millions of small domestic or entrepreneurial producers and organizations to become miniature power stations and to be able to sell the electricity produced in a semi-automatic way.

Therefore, among the essential benefits of the blockchain are the new business models inherent in P2P, with the formation of a new market that substantially expands the number of players and the number of transactions. From buildings to houses, understood as assets, both energy producers and consumers, there is the possibility of connecting to the grid to be qualified to manage and initiate peer transactions. The blockchain has the task of fulfilling contractual issues and controlling transactions and payments. In all of this, the assessments relating to increasing an energy market connected to the blockchain system show special development rates and good potential for progress.

Also Read: Digital Archiving: What It Is For And How To Do It Best

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