Blockchain technology stems from Bitcoin and provides a platform for change greater than Bitcoin itself. Researchers in the renewable energy industry have realized that blockchains can be used to replace outdated billing and tracking. Presently when a company produces energy it requires verification form other companies and each step eats into profits – a more efficient system would be use blockchains to verify the system by cutting out the middleman. The blockchain also provides a transparent solution that makes for easier monitoring and accountability than what’s currently provided.
The blockchain being used the example below is powered using my favourite cryptocurrency Ethereum. It is another way that distributed ledger systems mixed with computing power can alter our economies for the better.
Keeping track of renewable-energy certificates is one of dozens of potential applications of blockchain technology that could solve data management challenges in the electricity sector without disrupting business as usual, according to Morris. He and many others believe that in the long term, the technology could help transform the very architecture of the grid itself.
To unleash the potential of blockchain in the energy sector, Jesse Morrisâ€™s team at RMI has joined with Austria-based blockchain startup Grid Singularity to create a new nonprofit called the Energy Web Foundation. Earlier this month, the EWF launched its own blockchain, which Morris says is â€œpurpose-built for the energy sector.â€ Based on Ethereum, the network will be a test bed for promising use cases. To validate transactions during the test, EWF will rely on 10 major energy companies that have signed on as affiliates.