ing energy using blockchain in a decentralized environment could revolutionize the way we buy, sell and pay for power.
This unique opportunity for consumers is still in its infancy, but cryptocurrencies like Bitcoin have become household names. As consumers become more comfortable with decentralized, peer-to-peer transactions, the greater role it will play in the utility sector. Regulatory hurdles exist and need to be addressed to enable a larger, decentralized energy supply system. However, it seems necessary for the grid and distribution to be modernized in this way.
Blockchain technology provides end users the means to transact directly with producer(s) of power and with each other. Imagine eliminating the need for energy traders, banks, and several other layers of cost that are currently burdening energy consumers. Additionally, blockchain is a completely transparent and arguably more secure system for everyone to operate in.
Blockchain for Energy in the Real World
The Brooklyn Microgrid is an energy marketplace developed by TransactiveGrid enabling residents to be part of a “solar cooperative”. This illustrates the real world application of blockchain technology in a community setting. Brooklyn Microgrid provides members a choice in what energy sources they use. Consumers simply download a mobile app to pick an energy source and set a daily budget limit. The simplification of any process leads to greater adoption and mainstream use. This marketplace, which also supports the local community, is a model for other cities.
As technology becomes more widely accessible, and new generation sources are put in place, blockchain remains an inevitable part of our energy future.