Blockchain is future because of its unbeatable system of security. Blockchain-based security helps protecting all the information. It, even does not require any filters by third parties involvement. For beginners, blockchain, as the name suggests, is a chain of blocks. These blocks protect information. Also, it is encrypted and no third-party can alter it. Can blockchain in energy make wonders, how?
Blockchain development technology has gained popularity in many industries. It is also considered as the best possible option for the energy industry too. There are quite many reasons for which blockchain in energy industry can replace the existing systems.
Some of them are:
- It will create a direct link between the suppliers and consumers of energy.
- Strengthened security due to decentralized storage of transactions.
- No third party involvement.
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Role of Blockchain in Energy Industry
Blockchain sees lots of possibilities that can pave a way in the energy industry. That’s why, it can be a game-changer for the industry! Look at the benefits it can provide.
Extensive profit levels
There are numerous features in which blockchain provide ways for the energy industry to stand alone in the market. Some of them are:
- payments through cryptocurrencies,
- verifying the transactions,
- reviewing the digital contracts,
- executing trades and
- managing digital content.
Goodbye to intermediaries
All the transactions are done through protected and secured peer to peer network. This eliminates the need for any third-part involvement for the further security checks. Further, the intermediaries like government and other organizations are free of any obligations and responsibilities. All the transactions made are entered in a very protected manner which cannot be exposed to anybody. Hence, it eliminates eliminating the threat to be corrupted.
The decentralized system of blockchain will seemingly connect the energy suppliers to the energy consumers. Moreover, this will help in the simplification of the process as the whole energy sector operates on different levels. Also, it is considered to represent the ultimate level of energy-related blockchain applications.
Immutable smart contracts
Blockchain will make the energy sector to be controlled and operate through smart contracts. Which, in turn, would keep a track of the energy demand and supply . Also, blockchain in energy would ensure the proper supply is delivered to the consumers. The system would work according to the defined rules and regulation. This makes blockchain technology a suitable one to be adopted for the energy industry.
Safety and security
All the data related to the energy supplies will be recorded in the distributed ledgers. And, smart contracts will control this data. In addition, the entire data will be stored in a decentralized manner smoothening the working of network and storage operations. The feature that restricts the entry of invaders or third parties ultimately makes the system a secure and safe.
How does blockchain works for the energy industry?
Blockchain has a lot to provide for the energy industry. The energy that will be produced will be provided to the energy consumers through the energy suppliers through smaller networks (without intermediaries). Not only this, the amount of energy that is used would be measured with smart meters. Further, blockchain and smart contracts would keep a track of payments through energy-trading or cryptocurrencies. And, the payment for the energy supplied can be paid through cryptocurrencies.
When the traders engage in buying and selling of the energy, the bank will act as an intermediary to handle the transactions. However, in blockchain-based energy processes, there would be no interference or the need for the banks or energy companies for the transactions. Also, the decentralized system of blockchain would let the consumer track the energy supply and consumption data.
To look for the established examples for inspiration, let’s take a look at Energy Premier. It is a start-up that may help you in digging deeper into the industries to get to know them better.
Energy Premier works for bringing the above cases to life and make the consumers and suppliers of energy experience the usage of blockchain in the existing industry. It enables the users to trade electricity in a faster, convenient and a cheaper way. Also, it provides a direct link among the consumer and supplier of energy, eliminating the intermediaries, resulting in the lower prices for the supply.
This platform uses smart contracts and blockchain to make the system transparent, flexible and free of corruption. It makes Energy Premier a reliable and trustworthy space to trade energy.
Closing thoughts :
Energy industry is one of the most competitive industries. Hence, it has high demand in order to be safe and secured from all the threats it might face. In cases, where they are challenged with obstacles or where the security is concerned, blockchain is the one solution to make all the threats be fired away. Also, do you think there are any more ways through which blockchain can change the energy industry for better? Do let us know!