Many energy companies have been inspired by the possibilities that Blockchain technology may be able to produce for them and the world at large, as the contest to be the first to successfully incorporate Blockchain technologies into energy provision, it becomes clear that Blockchain is the way of the future for energy as a whole.
Many naysayers have professed that the hype surrounding Cryptocurrencies and Blockchain technology has begun to lull, decrying the technology as a mere fad, yet evidence shows a contrary light. Many of the products that wouldn’t cut it out in the market have already been culled due to the workings of the invisible hand, yet Blockchain technology has continued to be interwoven in countless industries. A few examples include the management of worldwide logistics, registration, and licenses as well as birth and marriage certificates.
Blockchain In The Energy Sector
However, while Blockchain may be cementing its worth within many industries throughout the world, the fact of the matter is that the energy suppliers within each country are faced with an extremely difficult challenge. The challenge is that the process to change from their current system to a blockchain intensive system is an extremely taxing and financially demanding process. This is perhaps most notable on the immediate effect that Bitcoin transactions are having on the power grid.
A single Bitcoin exchange takes a chunk of power that is equivalent to the amount consumed by an average household within a nine-day period. To put this in more shocking terms, the current volume of transactions in Cryptocurrency exchanges consumes about 32TWh per annum; this is also the amount of energy consumed by the entire population of Denmark.
Another challenge facing energy providers is that the infrastructure required to support these transactions is incredibly demanding. At this current stage, it is not possible to keep the development of new infrastructure, and the provision of power at the same pace as the burgeoning demand and use of Bitcoin and other Cryptocurrencies continues to surge.
What The Future Holds
There is hope around the horizon. In the future, energy sources will be a minimally carbon emitting option that can be produced according to levels of demand in the economy/population at large. In the not so far away future, a bevy of artificially-intelligent computers and other devices will assess the situation to immediately distribute energy to whoever needs it the most, according to various factors and criterium.
This new dynamic future will hopefully mean a future with less waste, a greater distribution of resources in accordance with needs and greater environmental efficiencies. However, this hub of the future can only be built if we focus on the necessary building blocks now, namely a greater use of Blockchain, a movement away from carbon and fossil energy sources, as well as a movement to global adoption of electronic goods and behaviors.
Blockchain can help facilitate all and more of these processes. Blockchain can be a key method for leading the digitization of the business world. One of the main ways it can contribute is by helping to move data out of onsite databases and into offsite platforms, all with the power of Blockchain technology.