Billions of people around the world rely on electricity to live a normal life. In addition to powering our homes, devices, and appliances, electricity is important at work, during our commute, and more. Without power, the world simply wouldn't be a very functional place.
Electric grids exist to ensure that power is more or less constant and not too many outages are experienced. Without these grids, many people would be without consistent power.
However, these grids (at least in most of the world) have seen better days. While most industries are advancing and using new innovations such as blockchain technology to solve their problems, the energy sector seems to be stuck in the past.
Blockchain Could Solve the Energy Problem
The existence of blockchain technology in the energy sector offers the unprecedented potential to allow for energy transactions between individuals, thereby encouraging the decentralization of an industry that has been centralized for so long.
This type of market would ultimately lead to better stabilization of the grid and would help increase transparency in energy pricing. A decentralized distribution model is unheard of in the energy space and could actually help to stimulate more and more renewable energy projects.
Another great use case for blockchain in the energy sector could be energy tracking. With blockchain-based smart meters, energy could be tracked in real-time which would be more efficient and effective while preventing the issues of double counting.
Tokenizing energy via the blockchain could also allow producers of renewable energy to connect directly with those interested in using or investing in it.
Blockchain in Action
One project that is harnessing the power of blockchain with the hopes of fostering a more sustainable world is Eloncity. Eloncity is a blockchain technology-based model for creating a community-based renewable microgrid.
This microgrid can either operate on its own for the community itself or can allow for the import of energy by connecting to the main grid. The project will use renewable energy resources that are locally available to help fulfill the energy needs of a community.
Members of communities will work together to exchange energy and share the costs and benefits with one another via a marketplace. This not only optimizes the utilization rates for the maximum potential ROI, but also allows for access to a reliable and cost-effective energy supply. These peer-to-peer transactions are a game changer in the space and will also help to encourage local consumption.
Eloncity has already begun to test their model and is running some pilots in cities across the world. The company's model boasts the use of direct current (DC) power and has the capability of offering services to the main power grid for extra revenue potential, enhancing the overall reliability and safety of energy supply via its decentralized microgrids.
Traditional Methods Are No Longer the Solution
In the USA, most power grids have been around for decades, and are in need of large and expensive changes and upgrades to keep them working. However, not only are these grids old, but they are inefficient as well. They utilize alternating current (AC) power, which must travel through different resources to get to the consumer.
In addition to the energy grid itself being old, inefficient, and expensive, the types of energy we use are incredibly harmful to our planet. Fossil fuels cause a ton of pollution and emit CO2 and other greenhouses gases into the air.
While production of renewable energy has never been higher, the same goes for fossil fuel consumption. So, while more people are using renewable energy, it seems as if others are doing the same for fossil fuels. Also, with fossil fuels being limited in their supply, we need to move on to something more sustainable.
Renewable Energy to the Rescue
In light of these sustainability concerns, it is more important than ever for us to make a widespread switch to renewable energy. Not only to produce more, but to actually use it and reduce fossil fuel consumption. Solar and wind have shown to be viable alternatives and there are other sources of renewal energy to consider as well.
While there have been many improvements and innovations in the renewable energy industry, there is still room for growth. For example, it is difficult to store renewable energy for long periods of time and it can only be gathered at certain times of the day. Furthermore, it can actually be more expensive for some people, which may deter some from using it.
However, many believe the solution to these problems already exists in the form of blockchain technology and just needs to be applied effectively to the energy sector. Blockchain technology has been around for years and might be the key to help unlock the true potential of renewable energy at scale.
Unblocking the Path Towards a Sustainable Future
In conclusion, blockchain-based solutions like Eloncity and similar projects could be exactly what the world needs to facilitate its shift away from a reliance on traditional sources of energy. Not only could this help save people money and offer a more efficient system, but it could also save the planet in the process.
Pairing up renewable energy sources with the power of blockchain technology is a no-brainer. It will be exciting to see what the future holds as blockchain continues to find utility in a variety of different industries—with the energy sector most certainly being one of them.