Blockchain in the Electricity Industry

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Although many people see the blockchain industry as one that is purely financial, it has actually recently started to expand out to reach other industries. Blockchain has the power to disrupt multiple industries in the coming years, with more uses being found for it all the time.
The energy sector is just one of these industries, and it is starting to see blockchain as a solution to some of the key challenges that it is currently facing. Some of the challenges include the decentralization of energy generation, the rise of renewable energy, and the shrinking profit margins of utilities. BitFortune.net mentions Greeneum as a good example of a decentralized, blockchain driven energy platform that simply works and introduces many different benefits for energy conservation.
Already blockchain has made a breakthrough into the world of energy, and is being used for peer-to-peer energy trading and smart metering. There are also cases where there are tokenized incentives for generating renewable energy.
The global electricity market is estimated to be worth around $2 trillion dollars, an almost inconceivable amount of money, especially considering it is an industry that is run almost but just a few big corporations.
In recent years however, people have become much more conscious of the environment, and what using a lot of electricity now will ultimately mean for the future, especially in regard to factors such as global warming. It is for this reason that many modern energy users want to have more of a say when it comes to both the generation and the distribution of electricity.
By applying blockchain to this market, the industry can start to shift from being the centralized architecture that it currently is, to a more decentralized peer-to-peer energy trading market.
There are already a considerable number of startups that are trying to put this idea in place. They are investing heavily in incorporating this new technology across various sectors of the industry. Although each company and project varies, the overall idea is pretty much the same. They want to create a global energy sharing system that has an equal balance of supply and demand globally.
At the moment, the rate of electricity is decided by centralized authorities. By using blockchain, this no longer has to be the case. The rates will instead be fixed by the market itself, and will respond to the supply signals in a distributed electricity market.
This will ultimately give a lot more choice to the consumers, as they will be able to search blockchain listings in order to find the deal that works best for them in terms of getting the most out of their money.
Additionally, cryptocurrencies could be used to make electricity payments, by ‘tokenizing’ the grid. Although this may seem like quite a futuristic idea, there are already companies that are putting this model into place, such as WePower, a European company that uses blockchain and focuses on the trading of green energy.
There are also a few blockchain based enterprises that are working solutions tailored to the peer-to-peer electricity trading market.
There are many ways that blockchain can, and will, be used in the energy market in the near future, bringing with them benefits and ease for both the industry and the consumers.



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