BlockchainTechnology

Why the energy sector must embrace blockchain now?

Blockchain and Blockchain

 

 

energy sector & blockchain

 

The effect of blockchain on energy

 

What’s energy?

In physics, energy is the quantitative property that must be transferred to an object in order to perform work on, or to heat, the object.[note 1] Energy is a conserved quantity; the law of conservation of energy states that energy can be converted in form, but not created or destroyed.

The SI unit of energy is the joule, which is the energy transferred to an object by the work of moving it a distance of 1 metre against a force of 1 newton.

Common forms of energy include the kinetic energy of a moving object, the potential energy stored by an object’s position in a force field (gravitational, electric or magnetic), the elastic energy stored by stretching solid objects, the chemical energy released when a fuel burns, the radiant energy carried by light, and the thermal energy due to an object’s temperature.

The reason energy is so hard to define is that it’s an abstract notion.

In physics, the concept of “energy” is really just a kind of shorthand, a tool to help balance the books. Energy is always conserved (or converted into mass) so is incredibly useful in working out the results of any kind of physical or chemical process.

The simplest definition of energy is “the ability to do work”. Energy is how things change and move. It’s everywhere around us and takes all sorts of forms. It takes energy to cook food, to drive to school, and to jump in the air.

 

 

Types of energy :

Mechanical Energy, Thermal Energy, Nuclear Energy, Chemical Energy, Electromagnetic Energy, Sonic Energy, Gravitational Energy, Kinetic Energy, Potential Energy, Ionization Energy and  etc.

 

What are Different Sources of Energy?

There are 10 main different sources of energy that are used in the world to generate power. While there are other sources being discovered all the time, none of them has reached the stage where they can be used to provide the power to help modern life go.

All of these different sources of energy are used primarily to produce electricity. The world runs on a series of electrical reactions – whether you are talking about the car you are driving or the light you are turning on.

All of these different sources of energy add to the store of electrical power that is then sent out to different locations via high powered lines.

 

what are the different sources of energy that are in use?

Solar Energy, Wind Energy, Geothermal Energy, Hydrogen Energy, Tidal Energy, Wave Energy, Hydroelectric Energy, Biomass Energy, Nuclear Power, Fossil Fuels (Coal, Oil and Natural Gas)

 

 The effect of blockchain on energy

Blockchain can provide consumers with greater efficiency and control over their energy sources. Additionally, an immutable ledger provides secure and real-time updates of energy usage data.

Various types of energy data include market prices, marginal costs, energy law compliance, and fuel prices.

If blockchain technology is going to revolutionize how we transact with each other, computer scientists need to solve one big problem: It can consume way too much energy.

for example, Blockchain can help automate transactions and records those transactions on a tamper-proof digital record available to all participants in a network.

Blockchain can provide consumers with greater efficiency and control over their energy sources.

Additionally, an immutable ledger provides secure and real-time updates of energy usage data. Various types of energy data include market prices, marginal costs, energy law compliance, and fuel prices.

 

Blockchain: A true disruptor for the energy industry

adopting blockchain in energy and resources (E&R) could improve visibility, increase operating efficiencies, and streamline regulatory reporting.

Explore additional advantages this technology could bring to the industry and why companies will likely need to collaborate to maximize these benefits.

Although it seems to be generating the most buzz in financial services, the networked infrastructure of the energy industry makes it particularly suited for blockchain technology applications.

And with the rise of IoT, the entire E&R industry may soon find its operations transformed into a vast global network of connected devices all feeding digital data into a platform that can capture and share information in real-time.

energy sector & blockchain

blockchain serving as the underlying backbone of the industry’s transactional infrastructure

 

With many emerging digital innovations such as the Internet of Things (IoT), automation, artificial intelligence, cloud platforms, big data, and advanced analytics, executives must decide how to adopt these digital capabilities—with blockchain likely serving as the underlying backbone of the industry’s transactional infrastructure.

Digital technologies and ubiquitous data are increasing visibility, transparency, coordination, and information sharing across company boundaries—enabling smarter, more informed decisions and greatly improved operating efficiency.

But in order to capitalize on those digital innovations, the industry needs to address the fundamental issues of security and trust, which are basic requirements for doing business.

 

Why the energy sector must embrace blockchain now?

Power and utilities have yet to fully adopt blockchain technology. Find out how energy providers and consumers alike could benefit.

A component of the energy-sharing economy

Blockchain wouldn’t be the first technology to unhinge the sector. Technological breakthroughs in panel efficiencies have seen solar costs fall by 80% over the last three years and they’re set to fall further.

Advances in battery storage technology now mean households can store electricity for back up or load shifting, allowing for greater flexibility to buy and store electricity when rates are low, and consume it as needed.

Alongside the rollout of smart meters and continued development of demand-side response measures, new digital peer-to-peer platforms are starting to emerge that cut out the middle man and seamlessly connect green energy producers directly with those wanting it. What we are witnessing is a power shift – the advent of an energy sharing economy.

These changes are empowering consumers to take control of their energy usage and reduce energy bills.

It is these changing characteristics that are exciting in the blockchain community.

They are drawn by the growing complex web of transactions, the need to balance the geographical mismatch between supply and demand and significant security and trust concerns are given the proliferation in IoT connected devices.

A new ecosystem of energy blockchain start-ups is emerging, and venture capital, so far, has raised over US$1b to scale business models of the future.

Aside from some early demonstrations, the applicability of an energy blockchain is largely theoretical. The ability to support a globally connected network of energy transfer, where smart devices will be able to securely send and receive data while autonomously reacting to market signals, is a reality some belief is still 5-10 years away. Smart meter rollout programs are in their infancy, huge investment is needed to digitize the grid, and global battery storage totals in the megawatts rather than gigawatts.

energy sector & blockchain

conclusion

Over 100 blockchain use cases have been identified.

Most pilots are still in early stages across the energy value chain, primarily in the area of peer-to-peer energy trading, where owners of small-scale generation can sell excess generation direct to other consumers.

These pilots range from microgrids and solar systems to e-mobility and EV-charging.

Other potential applications include authenticating renewables at the point of origin or keeping a record of emissions’ permits. Many are also considering its application as a grid management tool that can record energy flows to highlight anomalies in the network.

But, according to a Navigant Research report, peer-to-peer energy trading is the use case that is gaining the most traction.

This is being made possible by the ability to pre-program “smart contracts” that can trigger transactions automatically.

These smart contracts can be set to allow prosumers to feed surplus energy into the grid through a blockchain-enabled meter.

The flow of electricity is automatically coded into the blockchain and algorithms match buyers and sellers in real-time based on preferences.

Smart contracts then execute when electricity is delivered, triggering payment from the buyer to the seller. Removing financial transactions and the execution of contractual commitments from central control brings a whole new level of decentralization and transparency that the industry has never had before.

energy sector & blockchain

 

ARANCO
ARANCO GROUP

 

If you want to trade with simple and accurate tools, please be in touch with us

Reach to your goals with  ARANCO

Tags
Show More

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
error: Content is protected !!
Close
Close