Bitcoin’s underlying blockchain technology is making inroads into every industry sector possible. The energy sector is one such industry which may soon see a widespread adoption. According to reports, a survey conducted by the Deutsche Energie- Agentur (German Energy Agency) and ESMT Berlin has indicated that many energy companies already have a blockchain technology roadmap in place for future implementation.
The survey included responses from about 70 executives serving with multiple firms in the energy sector. Over 39 percent of the respondents have divulged that their companies have plans to incorporate distributed ledger technology into their operations in the future. Another 13 percent believe that their companies have blockchain technology based applications ready and they are already or may soon start using it.
The transparent and immutable nature of blockchain technology makes it a favorable alternative to existing record keeping and compliance processes. The ease of making payment using cryptocurrencies is also an added advantage which can be leveraged by the energy sector by implementing blockchain technology into their operations. Many respondents were convinced about the disruptive nature of cryptocurrency technology when it comes to smart contracts and record maintenance. Over 60 percent of the respondents from the German energy sector believe that the blockchain technology will further proliferate into the industry.
The use of blockchain technology and cryptocurrencies in the energy sector is not a new thing either. Companies like Transactive Grid and Sun Exchange are already working on the inclusion of cryptocurrencies in various capacities. Transactive Grid is a New York-based startup that has created a blockchain based microgrid to enable peer to peer transaction of energy. On the other hand, Sun Exchange offers Bitcoin-based crowd lending solution where people can invest in solar projects both locally and globally.
In the coming years, we can expect the blockchain technology to have a more prominent role in the energy sector where all electrical connections are registered on the blockchain along with consumption data and other statistics. Users may as well be able to make payments with Bitcoin and other digital currencies. Even though one can never be sure about whether it will turn into a reality or not, it is definitely worth waiting for.
Ref: Contra Magazin | Image: DAVID ILIFF (License: CC-BY-SA 3.0)