Blockchain is widely regarded to be the next major technological breakthrough for mankind. In the not so distant future, it is thought that blockchain will run everything from internet-based transactions to more complex government-run systems and core infrastructure. For anyone unfamiliar with blockchain, it is a completely transparent, highly encrypted, and decentralized means of storing information and digital records. With blockchain possessing fewer security risks than more standardized digital systems, it is slowly becoming the preferred method of managing energy distribution and consumption. When it comes to energy management and distribution, blockchain is far safer, far more transparent for consumers, and far more efficient in how it maintains infrastructure.
Setting Up Smart Grids
Numerous start-up ventures have recently made it possible for consumer-driven smart grids. In a nutshell, these grids grant consumers a far more transparent level of access and control over where they source their energy. This, in turn, creates far more demand for clean and green energy sources, spurring further innovation in these lucrative sectors. For example, consumers can use a blockchain to ensure that their sole source of energy comes from wind, thus ensuring that all of the money they spend on energy goes completely to upstream wind farms.
Less Energy Market Manipulation
It has recently come to light that many of the more traditional fossil fuel-driven energy companies have used their market share for many decades to suppress cleaner energy products. The coal industry, for example, has gone out of their way to make it much harder for consumers to get access to cleaner green energy providers. With blockchain forcing transparency on to the energy game, the energy market will be scrutinized by end-users much more so than has even been the case. Fossil fuel companies that abuse their market power will receive massive backlashes under a blockchain-driven system.
Less Energy Waste
One of the primary benefits of using blockchain to manage energy infrastructure and consumption is that it operates far more efficiently than standard infrastructural systems. Routing energy through conventional means has been proven to be nearly 30 percent more wasteful than blockchain routing systems, due largely to increased blockchain energy routing controls. Standard energy routing systems often use age-old routing channels rather than more modern infrastructural channels. With greater control over how energy reaches the end-user and greater transparency over energy routes, far greater efficiency will be forced on to energy providers to clean up wasteful delivery systems.
Improved Energy Data Management
Another major incentive to use blockchain in energy use is that it offers increased data management. Due to blockchain’s increased core transparency, consumers will have greater access to current market energy prices, energy marginal costs, energy taxes, and energy law compliance factors. The non-blockchain energy conglomerates are known to heavily manipulate the data that is passed on to end-consumers. They also intentionally omit certain data sets in order to prevent consumers from knowing too much. With blockchain-driven energy systems, the age-old energy industry of hiding data will simply no longer be possible.
Solar Will Be Moving Fast
In parts of the world where blockchain-driven energy systems are already in place, solar power is the leading energy source that open grid end-users are consuming. Once blockchain energy systems go into effect in the Western energy markets, a similar effect is predicted. Solar energy is the clear front runner in the clean energy race. Once consumers are able to hand-select their energy sources through blockchain management, solar energy is expected to begin to work its way to not just a leading green energy source, but a leading energy source overall.