How Blockchain Technology Will Transform Energy Sector?
Blockchain Technology needs no introduction, as it is already very popular among business. Though, general people are not completely aware of this technology.
The fact is that this technology has gained fame only due to the expansion of cryptocurrencies like Bitcoin and Ethereum. It is true that this technology was available in the technology space earlier to this innings. Though, These coins brought a new beginning for this technology.
Actually, blockchain technology has found an application across various industries and aided them to increase flexibility and reducing costs. Well! the expansion is continuous and it is going to proliferate new forms of collaboration. This is potentially better and has the potential to replace present-day intermediaries.
As it is revamping a number of industries, experts are striving to use it in various ways. Their endeavors are resulting in different kinds of software development that can aid industries in unimaginable ways. In recent couple of days, I have seen various application of blockchain, though its use in energy sector left me astonished.
Yes! you heard me correct.
BLOCKCHAIN IN ENERGY SECTOR
As we all know energy sector is very wast and exceptional and here technologies are expected to offer supreme quality support. Actually, this technology is expected to offer a shift from procedure-centric model to prosumer-driven model.
The current model producers focused on producing electricity only. Later, producers sell the power to the consumers. Though, due to the downfall in the prices of solar panel and energy storage equipment, consumers are not staying the same as they have become producers too. Thus, here arises the term prosumers.
This is in a very initial state, and the electricity that consumers are producing are mainly consumed by their own. Though, it is expected to progress and grow as peer-to-peer trading. In result, the existing top-down model will transform into a distributed model with the help of blockchain.
How this will take place?
Well! it will run concurrently to physical electricity grid, and a huge amount of data will get generated through the information. And! this will need processing. Despite all of these, there will be both opportunities and challenges. In this radicalization of this sector, blockchain technology will need as there will need to record all peer-to-peer trading transactions in secure and flexible manner.
Some industry players are experimenting with the technology, they are striving to develop a digital platform based on blockchain. That will be used in trading of commodities.
Indeed, energy sector deals with a huge amount of data, and collecting that data and sorting is quite daunting in procedural model. Blockchain can improve via infusing a distributed structure, which could make data retrieval more easy. Altogether, it can integrate more trust, as the data in this system would be immutable and nobody could temper the data.
For energy sector, this would be a great transformation, as the industry always struggles in handling huge amount of data. Let's see what all is there in this magical beg of blockchain.
A SINGLE INNOVATION AND MANY APPLICATION
In this industry, more than hundred blockchain use case has been identified. Most of the early stage energy pilots are primarily engaged in peer-to-peer energy trading. In this system, owners can generate excess energy and can sell it directly to the consumers. Actually, these pilots include solar systems, micro grade, e-mobility, and EV-charging.
Another potential use of blockchain enabled model includes the authentication of renewable at the origin point or maintaining a record of emission permits. Some researchers are also considering its use as a grid management tool which can trigger the recording of energy and flow to highlight anomalies in the network.
Though the question is how it can be possible? No worries as this can be accomplished through the ability to pre-program the smart contracts of blockchain. These smart contracts trigger automatic transactions.
Well! These all are just some example of application of blockchain in energy sector. Over the time, the uses will grow and reveal the real potential of the technology in the industry. Mobile apps could also be a great part of this initiation. It will be exciting to see how blockchain will transform the industries. At Techugo, we are creating different types of applications that revolutionizing many industries and pay off. To know more about blockchain application development, get in touch with us.