Several Organizations including large Software Solution providers and start-ups are at present creating Blockchain-based applications for the energy sector. In addition, energy and utility organizations (such as Daisee by Myne, Wuppertal Stadtwerke Energie & Wasser AG) are setting up blockchain-based activities too. These blockchain-based applications are intended to make an immediate association between the providers and consumer of energy. Blockchain innovation is likely to turn into the biggest disruptor for a further decentralization of the energy systems and frameworks.
Current Innovation: The blockchain-based innovation has received a lot of traction in last 3 years. Blockchain innovation has a broad scope of use in energy and utilities. For instance, blockchain can assist users with making payment with cryptocurrency, to check exchanges, to close computerized contracts, to execute exchanges, among other applications.
Blockchain frameworks initiate and send transactions while recording them in a protected and secure way. All exchanges made between individuals are specifically executed through a distributed system. A decentralized energy sector and supply system can be considered to represent the possible opportunity for energy-related blockchain applications.
The blockchain innovation is fit for setting up a decentralized energy systems and supply framework. There is a tremendous possibility that blockchain will directly connect the energy providers with the energy purchasers, and it will streamline the present framework where each party in the energy sector operates on different levels.
Smart Contracts: Blockchain solutions empower the energy sector to be controlled through smart contracts. Smart contracts would signal to the system what transactions should be initiated in particular time. This would be created on predefined rules made to ensure that all energy systems are consequently controlled, in order to create a balance between energy supply and demand. Smart contracts can ensure that the proper amount of energy is delivered into storage automatically.
Conclusion: Applying blockchain-based applications in the energy sector will mean that all energy flows and business activities will be safely and securely recorded on a decentralized storage. Blockchain-based applications has a wide opportunity in the decentralized structure of energy transaction and supply system that possibly will enable blockchain technology to become the key driver for the future.
– Pradeep Singh,
Sr. Research Analyst,
Infoholic Research LLP
Worldwide Cryptocurrency and Blockchain Technology Market – By Verticals (BFSI, Retail, Media & Entertainment, Gaming Industry, Healthcare, Travel & Tourism, Transportation & Logistics, Education and Others) and Regions (Americas, Europe, Asia-Pacific, and MEA): Drivers, Opportunities, Trends and Forecasts, 2016-2022