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Blockchain is a decentralized ledger that operates as a peer-to-peer network and uses cryptography to link transaction records. When applied to the energy market, it will allow customers to trade with one another.
Fremont, CA: The energy sector is regarded as one of these sectors. Blockchain, in particular, would almost definitely promote more renewable energy and technology solutions.
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Individual customers used to have a very one-way relationship with utilities: they charged for the energy they used from the grid. Many that have rooftop solar or another form of renewable energy solution have had a little more of a reciprocal relationship, with the opportunity to sell excess renewable energy produced to the grid through utilities. Even so, this configuration is fairly static and inefficient.
Households will gain a lot more control over their energy relationship thanks to blockchain. Blockchain will enable an energy-sharing economy, which includes a power exchange among consumers, and provide greater control over climate impacts.
Blockchain is a decentralized ledger that operates as a peer-to-peer network and uses cryptography to link transaction records. When applied to the energy market, it will allow customers to trade with one another. Just like mobile payment platforms like Venmo allow for the safe, peer-to-peer exchange of funds, blockchain will allow for the secure, peer-to-peer exchange of energy.
Blockchain can also help producers raise capital by issuing energy tokens, which investors can use to buy or resell energy. The result will be a multidimensional network capable of facilitating a more intelligent, cleaner power grid.
This disruption would almost certainly boost renewable energy growth, as tokenizing energy would enable solar, wind, and other clean energy producers to easily interact with buyers and investors. Since this is a distributed solution, the middleman (energy utilities) is removed.
The Brooklyn Microgrid Project is one example of a dispersed system on a small scale. The project is focused on solar panels mounted on five houses, with surplus energy from the panels sold to neighboring buildings. Although all of the buildings in the project remain connected to the grid, energy transactions are done by blockchain and smart meter technology.
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