Inter-bank transactions, online gambling, supply chain logistics, intellectual property protection, and keeping track of fake food are just some of the areas where blockchain technology is being put to work. Blockchain’s ability to enable direct, effective, and secure transactions between multiple parties would facilitate the large scale integration of energy sources and devices such as solar cells, batteries, and electric vehicles onto the grid.
Potential of Blockchain in energy sector efficiency
- Potential application for blockchain in the energy sector relates to the inevitable utility bills that land on your doormat (or in your email inbox) each month. Using blockchain in this context could effectively address reconciliation and settlement of payments, lowering the transactional and administrative costs common to existing billing systems in place today.
The traditional transaction model typically involves multiple tiers of participants, with a heavy reliance on third-party central intermediaries. Blockchain, on the other hand, enables automatic resolution of multi-party reconciliation and settlement.”
Use Case : Singapore announced that it has signed a collaboration agreement with a wide-ranging group of energy industry players. The partnership will seek to co-develop blockchain solutions aimed at cutting costs and accelerating adoption of renewable energy sources.
Blockchain could help Protect the Environment
The idea is about all these connected devices able to talk to each other and optimize their consumption without going through any central hub means that you can now optimize pockets and smaller areas of grid and energy usage.
Blockchain technology can also help identify areas where other power sources could be easily integrated into the system, which is a huge challenge for energy companies looking to increase dependence on renewable energy without costly rebuilding efforts.
Using blockchain for sustainability
Among this revolutionary system’s most promising applications, though, is its potential use in sustainable governance systems here is it could improve governance and sustainability:
First, by making ownership concrete. As blockchains cannot be altered, manipulated, or changed without consent by all parties involved in the network, blockchain could prevent corrupt governments or companies from evicting or seizing the assets of people unfairly.
Second, by using its unique traceability. If Blockchain is used in conjunction with the internet of things, the efficiency, waste, and/or emissions of individual commodities, as well as entire company’s supply chains, could be securely and reliably logged. This would enable a reward structure for sustainability because it would provide a way to ensure there is no manipulation of figures or deliberate misinformation.
Third, by providing reliable payments. Blockchains do not require bank accounts — which is beneficial to people in countries that lack the infrastructure to supply them. This would ensure that money intended to be a reward for conservation, or charity payments to specific causes, does not disappear into unintended pockets through bureaucratic labyrinths. Blockchained money could be released automatically to the correct parties in response to meeting environmental targets. Another potential use in this sector is the direct trading of energy, rather than having to rely on middlemen’s conversions or evaluations.
Fourth, by making the corrupt accountable. This can apply on a number of levels, from the governmental to the individual. Votes could be registered on blockchains, making electoral manipulation extremely difficult — or, on a more personal level, evidence could not be tampered with, nor deals changed or fiddled with.