One of the first places where blockchain technology can make a large impact on the transactional ecosystem within the energy industry is in commodities trading.Companies currently spend millions to build and access proprietary commodity trading platforms that track and execute transactions. Rather than multiple proprietary systems, blockchain technology could be used to ensure security, immediacy and immutability of energy trading. Additionally, there is opportunity in the creation and trading of green certificates and carbon offsets, which are often costly to obtain. Automated smart contracts and metering systems could improve offset accessibility, an approach taken by Veridium Labs project. Eliminating MiddlemenBlockchain transactions are also particularly effective at eliminating middlemen, which may serve to lower costs instituted by energy retailers. As mentioned above, these retailers sell users energy from the utility providers delivering the energy. A more transparent blockchain-based system may allow for users to purchase directly from the utility providers. United States-based startup Grid is utilizing the Ethereum blockchain to do just that, enabling users to purchase electricity wholesale rather than going through retailers. Peer-to-peer transactionsFinally, peer-to-peer transactions — one of crypto’s initial value propositions — is an avenue of improvement for the energy sector. Blockchain systems can allow users to trade energy directly. This is particularly promising for renewable sources of energy like solar and wind, which users can generate themselves. This innovation would essentially allow prosumers to enter into the energy market as a supplier. Australian company Power Ledger is allowing users to do just that with its microgrids, which allow prosumers to sell energy to members in their communities. The post How can blockchain improve transactions in the energy industry? appeared first on Data Science PR. Via https://datasciencepr.com/how-can-blockchain-improve-transactions-in-the-energy-industry/?utm_source=rss&utm_medium=rss&utm_campaign=how-can-blockchain-improve-transactions-in-the-energy-industry |
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