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Learn about how Blockchain is making major changes in the energy industry and its major applications. Know about the main startups using blockchain to disrupt the energy industry.
BLOCKCHAIN TECHNOLOGY IN THE ENERGY SECTOR
Blockchain technology has revolutionized most industries and the energy industry is not left behind. As much as there have been many innovations of technology in the energy sector such as solar energy, electric vehicles, and smart metering, there is still much more that is yet to happen especially with the rise of blockchain technology. There are no limitations to the blockchain use case. It may be the solution to changing renewable energy standards, better data management, and changing the energy markets among so much more.
Blockchain in the Energy Sector: Uses and Applications
From the trends, it looks like blockchain is the next emerging technology to lead to the growth of the energy sector. The main applications of blockchain that are relevant to the energy sector include:
Smart contracts and systems interoperability: This has been made possible by using the Ethereum blockchain which makes it possible to easily do Peer to peer transactions without fear as smart contracts provide the situation that certain conditions are met before a contract is effected. That has changed the energy sector business model as it is much easier to do peer to peer transactions and that has increased the rate of peer to peer energy trading.
The application of distributed ledger technology: This has helped to increase transparency without necessarily compromising on privacy. This is important as there is more efficiency since consumers can easily purchase energy and track consumption which can help them manage energy more.
Decentralization: This has made it possible for the technology to provide a platform that is not centralized and hence helps to reduce regulators or middlemen who make the cost to be higher. Decentralization helps every process to be fast for example purchasing electricity is almost instant.
Blockchain: A True Disruptor for the Energy Industry
There are many ways in which Blockchain has disrupted the energy industry and that includes:
Has cut down on middlemen: Most of the time, middlemen are the ones responsible for high electricity cost as they buy directly from the source then they do a markup of a big margin making electricity to be expensive. Blockchain has changed this by providing a decentralized platform that locks them out making electricity much cheaper.
Cheaper Electricity: As mentioned earlier, decentralization of the platform eliminates centralized regulators and middlemen who make the price to be high.
It is possible to track consumption: Initially, there were no real and solid systems for tracking consumption and that made it harder to manage power. With blockchain, however, it is possible to track your consumption and hence manage it better due to the transparency of the platform.
Faster transactions: Since the blockchain has eliminated middlemen, there is more efficiency and hence there are faster transactions. You can purchase electricity and get it in no time.
Track the source: Since there is transparency, you can decide where you are purchasing your electricity from.
Increased transparency: Increased transparency is not only important to consumers but all stakeholders. That makes them do their corporations and deals with confidence as their privacy is not compromised.
Environmental sustainability: Through the blockchain, there is more environmental sustainability. It makes it possible to get just what you need. You can also sell excess electricity or solar power. It also provides a base where you can connect with the community and learn more about energy optimization.
How Blockchain Is Changing the Energy Industry
Blockchain technology has brought so many changes in the energy industry and that includes:
Wholesale electricity distribution: Blockchain has made it possible for consumers to buy directly from the source eliminating retailers and that helps them to get electricity at a wholesale price.
Peer to peer energy trading: As much as most companies make it possible for consumers to buy directly from the source, some provide a platform for peer to peer energy markets. That means that individuals can buy and sell excess energy to others. This is especially common with solar rooftop energy.
Better Data management: The distributed ledger helps consumers to have real-time updates of their energy consumption. It is not limited to energy consumption but users will also get data on market prices, market trends, relevant laws, and fuel prices. The best part is that the data cannot be manipulated.
More efficiency for Utility providers: The decentralized platform will help utility providers to et data that will help increase efficiency especially when it comes to distribution as it keeps track of distribution data.
Top 4 Crypto Companies in the Energy Industry Review
This is a blockchain-based energy trading platform. The platform allows one to buy and sell renewable energy, trade environmental commodities as well as invest in renewables. The decentralized platform is based on a software that allows one to sell their excess rooftop solar power with their neighbors.
This is also one of the energy blockchain startups that use blockchain to cut out on middlemen in electricity sales. Grid is powered by Grid token which consumers can use to purchase electricity at wholesale prices.
Hopefully, you have enjoyed today’s article. Thanks for reading!
Have a fantastic day!
Live from the Platinum Crypto Trading Floor.
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