The Energy Sector: A Quick Look

The Energy Sector: A Quick Look

In Blog/Energy

The Next Big Energy Revolution

The green revolution has finally arrived at the energy sector. While many industries have moved towards more environmentally-friendly policies, the energy sector has seemingly been slow to the party. Now, though, experts agree we are just entering into a new age of energy management.

Over the years, we have dabbled in many types of energy, including “dirty” ones like coal and fossil fuels. With the advent of other cleaner energies, such as wind and solar, technology has struggled to keep up with management of power supplies. For years, centralized power companies brokered the price of energy on a given grid, ultimately setting the prices as they see fit. As a result, the traditional providers of power have lined their pockets at the expense of the consumer.

Revolutionizing the Energy Sector With Blockchain

Blockchain technology allows consumers to buck this outdated notion. It transforms consumers with excess energy supply into energy providers. Across the globe, governments and corporations are turning to consumer-to-consumer (C2C) energy transfers with the help of the technology. Individuals with an excess energy supply can sell power to their neighbors, thanks to blockchain. The energy sector is preparing for this overhaul by launching several pilot projects, backed by the emerging and promising technology.

Many existing energy providers are turning to blockchain to simplify delivery systems and overhaul energy grids. Because the ever-changing energy needs of the world are spurred by scarcity and innovation, blockchain offers several different decentralized applications to improve this transfer of energy sales. Further progressions may ultimately lead to the elimination of any intermediaries or middlemen altogether.

On paper, it looks like blockchain is perfectly suited for the energy industry. Blockchain offers a reliable, low-cost way for financial or operational transactions to be recorded and validated across a distributed network with no central point of authority (read about how blockchain works here). This permanently blurs the line between provider and consumer. Older power grids have proven vulnerable to hacks, but the security provided by the blockchain offers a much safer alternative. Much like other industries, blockchain technology is poised to be the biggest technological overhaul in the energy sector!

 

If you’re interested in reading more about the energy industry and blockchain technology, head over to our energy-related articles!