Blockchain technology can help us with energy problems during times of crisis. It brings together parties from around the world to work to provide a more accountable and trustworthy way of accessing energy, at a lower cost than our current system.
In this article, we will look at the ways that blockchain can help the energy sector.
How energy production currently operates
Today electricity is powered by large power plants and industries in the energy sector. The electricity in our homes is generated through these industries over power grids. It is operated by energy companies and energy producers around the world — a huge industry that controls the amount of electricity we use.
What this means is that businesses and individuals have very little control over energy usage and distribution. In times of war or distress, energy usage can be controlled and manipulated by industry. They can cut off our access to energy at any time without consequence.
Power costs can also rise depending on market prices and political factors. As you can see, there is a lack of transparency, accountability, and affordability with the current energy system we use. Here’s where blockchain technology comes in — an open network used to help us find more cost-efficient, transparent, and promising ways to distribute and record energy usage around the world.
How Blockchain provides better energy solutions
Blockchain has been around for decades, it has become popular for mining and Bitcoin currency. Experts have only recently begun to use Blockchain technology to transform the energy industry.
Although there is still research being undertaken, Blockchain technology can boost worldwide energy production in several ways, including:
- Tracking energy services and energy supply around the world
- Promoting and funding renewable sources of energy
- Creating and distributing energy through decentralized channels and Smart Contracts
The distribution of renewable energy through blockchain. Source: Semantics Scholar
Boosting energy production through blockchain software
Imagine a world where you are able to generate and distribute energy to those who need it the most. Blockchain allows this by creating a decentralized Smart Contract that allows households and operators to produce and sell energy.
Blockchain software handles decentralized transactions between energy users and energy producers. Through Blockchain technology, the suppliers of energy will be able to access data to provide energy to consumers directly, without the need for a third-party institution. The result? A fairer, more open, and cost-effective solution to energy production and supply.
Example of a smart transaction platform between a renewable energy supplier and the consumer. Source: World Economic Forum.
Blockchain companies that help provide better energy solutions
Many companies are already using Blockchain technology to provide energy solutions. Others are researching methods to use blockchain in their business. All of the companies aim to use blockchain to help provide a better source of energy than the traditional method.
These businesses are paving the way to a world that creates and uses renewable sources of energy without the need to rely on the huge industries and politically-driven operators we have today.
Advantages of using Blockchain for energy production
● A cleaner approach to worldwide energy supply
● Allows users to access renewable energy solutions
● Uses a more efficient supply and demand process
● Cost-effective worldwide energy solutions
● Open and fair access for all parties involved
● More transparency and less interference from governmental organizations and institutions
Here at IXFI, we believe that Blockchain technology is the future. It can solve all of our current and future energy problems if used efficiently. With the number of companies and investors using Blockchain technology to provide better energy solutions, it is no doubt that we are heading toward a world that uses blockchain to power all energy devices around the world.
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