Innovations of Blockchain in the Energy Sector
The cryptocurrency craze has led to massive Buy and Sell digital currency in recent times. But Blockchain, the underlying technology to cryptocurrency is also making headlines everywhere. At a time when innovation is emerging as the driving force, Blockchain technology brings plenty of opportunities. Be it finance, medical, or energy sector, Blockchain technology is the next big thing!
Blockchain technology has tremendous potential to transform the energy sector in the coming few years. Constant innovation is the catalyst that can transform industries; the energy sector is also no different. Hence, the application of Blockchain technology in the energy sector is assumed to hike from a mere 200 million USD to 18 billion USD by 2025. The amount says it all!
How will Blockchain make a difference?
Like any other industry, the energy sector is constantly changing with innovation. Smart metering, electric vehicle, and rooftop solar are the recent innovations, already making an impact across geographical locations. Now, Blockchain the underlying technology to Buy and Sell digital currency presents itself as the next sensation. So, Blockchain through system interoperability and smart contracts can spur growth in the energy sector.
Though Blockchain is considered to bring a complete change to the financial world, the application of this innovation is less recognized in the energy sector. However, numerous Blockchain-related initiates have been taken recently. Some of these include real-time data management, a new business model for energy sectors, renewable energy, and moving carbon credit certificates. Moreover distributed ledger has the potential to enhance the efficiency of utility providers. Hence, this new technology which came into light as popularity and trading Bitcoin in Australia increased, offers an exemplary solution for renewable energy distribution.
Across Wide Spectrum
The application of Blockchain will increase across the legacy energy sector like oil and natural gas. Even today petroleum is the most traded commodity across locations; it requires a huge network of governments, regulatory bodies, jobbers, tankers, and refiners. There is a complex process that often suffers from several process inefficiencies. Blockchain technology will play an important role in reducing harmful natural impacts and also lower costs.
As you trading Bitcoin in Australia through popular online exchanges, Blockchain ensures complete privacy. This is one of the key features of this technology which makes it ideal for the energy sector. Most oil and natural gas companies are hugely concerned about trade secrets and privacy issues. Blockchain Technology brings that complete solution. Also, the network offers selective consortium access and data permission access to approved parties, thereby ensuring complete privacy.
More importantly, Blockchain will help in:
- Increasing transparency for all stakeholders
- Reduce costs
- Environmental sustainability
- Remove third-party interference or dependence
Numerous agencies and businesses are working with a range of Blockchain products that can be tailored to addresses different sustainability or energy applications. So, here are some which are making news everywhere:
1. Electricity Data Management
Blockchain technology apart from being the driving force behind Buy and Sell digital currency can provide customers with enhanced control and efficiency over energy sources. Several energy data such as fuel price, law compliances, marginal costs, and market prices can be secured and updated in real-time using this latest technology. Already several initiatives are taken to store, record, and track energy data.
Over the years data has been manipulated intentionally or misreported unintentionally, which has led to accidental errors, corruption, and financial losses. To ensure transparency and a corruption-free world, a distributed ledger system will help in meeting this goal. Consumers can now easily access records of prices and transactions. Also, public Blockchain will reduce issues related to data or monetary exploitation.
2. Extensive Electricity Distribution
Several companies are today looking to implement Blockchain technology for extensive electricity distribution, with the sole focus to connect end-users. This innovation when combined with the Internet of Things will enable customers to purchase or trade electricity from Grid directly. Third-party retailers will go out of the scene. The truth is retailers are driving sources of inefficiency and all issues in electricity distribution. With Blockchain implementation, metering and billing efficiency will increase massively.
With the growing application of Blockchain in the energy sector will reduce consumer bills to a huge margin, some assume bills to shrink by almost 40% in some places. Now that is huge! The new system will allow users to directly purchase energy from Grid at a certain price. Hence, this new system will make electricity more affordable and stable market.
3. Utility Providers
Electricity providers are complex and large firms taking the responsibility of generating energy from solar farms, different energy sources, and power plants. When compared to the financial sector or services, this industry is completely different. There is not much competition, rather utility providers share data and information. Now there is where a distributed ledger system can create more opportunities.
4. Eliminating Middlemen
Blockchain technology is also best known to eliminate middlemen, which may reduce the overall cost in the long run for energy companies. Transparent Blockchain-based system will simplify the whole process making it more efficient and pocket-friendly. Already startups are working on Blockchain to enable users to purchase or trade electricity from service providers directly, rather than involving retailers.
5. Energy Trading
Though energy distribution is one main application of energy firms, it is not the sole focus or purpose. Blockchain technology will build a peer to peer energy market, which is a network if individuals buying or selling energy from different participants like trading Bitcoin in Australia from any exchange. The best thing about these energy markets is that it reduces dependency or control of the government or central authorities. Already many Blockchain-based energy companies are seeing the huge potential with distributed grids, in days to come this trend will increase massively.
6. Oil and Natural Gas Resources
Implementation of Blockchain in Oil and Natural Gas trading will make way for new possibilities. This will ensure low costs in the maintenance of different trading systems. And more importantly, Blockchain will reduce costs in terms of settlement delays, data management, labor, inert-system communication, and data visibility. According to experts Blockchain technology will efficiently track and facilitate Gas trade, in the long run, this will reduce over 30 to 40 percent cost. So, top energy companies are now willing to test this concept with various other resources apart from gas.
7. Commodity Trading
The gas and energy commodity trading sector is another realm that will benefit from Blockchain technology. Businesses have invested a huge amount to build platforms, tailored to meet specific energy trading requirements. Constant cost is necessary to update, maintain, and secure all these systems. With distributed ledger in commodity trading will ensure an efficient and cheaper solution. Immediacy, security, and immutability can also be programmed in the technology to meet specific business requirements.
Blockchain Impact in Energy Sector So Far
The application of Blockchain technology in the energy sector is already taking major strides. Also, much to the delight of Blockchain fans, several projects have already started in different geographical locations. According to a recent report, at least 190 Blockchain-based research projects and startups in the energy sector are gearing up to transform or innovate the energy sector, spanning all around the world.
Here are the Blockchain initiatives which will soon change the energy sector:
- Decentralized and transparent energy trading
- Enhanced billing and metering
- Cryptocurrencies and tokens Investment
- Smart devices, Internet Of Things and Data Management
- Carbon trading and Green Certificates
- Electric e-mobility
So, given the complex nature and wide area of the energy sector, the number of opportunities in this sector will only increase in the coming days.
Making the impact
Blockchain will enhance security, speed, and scalability for the energy sector. The present system is deeply ingrained, from all perspectives be it regulatory, technological, or infrastructural. Blockchain technology needs to overcome all the barriers in the energy sector to make things count. So, many new capabilities of Blockchain technology are being explored, it is time for the energy companies to make the move towards low risk, hassle-free, transparent and simple processes.
The Future is Blockchain Technology
Despite all challenges, Blockchain technology has significant potential in the energy sector. The sky is the limit! Apart from being the technology behind Buy and Sell digital currency, Blockchain is going to rule every sector in the coming days, energy is one main industry. Though it may seem uncertain for many how Blockchain solutions will look like, in a few year’s time things will start becoming clear. The longer-term vision will lead to more opportunities by Blockchain into the energy ecosystem.
Blockchain technology has immense potential and it will slowly induct trust among all stakeholders. As a result the Blockchain technology will change the whole energy ecosystem. It is just the start of something big, wait, and watch!