The blockchain is here, and renewable energy needs a handy solution to advance its fortunes. Features of the blockchain makes it suitable for this goal. See how this works out as you read on.
The use of blockchain technology can be understood with the reports on new apps and innovations hugging the headlines. For the last two decades, there has been a growing focus on how to transit to non-fossil fuels for the good of the environment. However, how the nitty-gritty works is open to discourse.
Blockchain innovations are hugging the headlines from Tokyo to Brisbane, and this is not without good reasons. Efficient, secure and transparent processes are made possible with technological innovations, and the blockchain is an evidence of such.
Understanding Renewable Energy
The nature of renewable energy processes is such that makes it open to private participation and non-centralized structures. What this essentially means is that individuals could acquire non-complicated technology to generate energy.
The sources of renewable energy around the world are innumerable. Biogas can be extracted from biodegradable waste and solar energy from sun rays. In this vein, the apparatus needed to convert these primary resources to energy is available easily.
The ease of generating renewable energy brings along with it another challenge-transparency. How can transparency become a challenge here? With several sources of energy in a specific locality, metering and tracking how the energy generated gets distributed can be a challenge.
Energy generation on a global scale can become largely decentralized with renewable energy sources. However, ordering and accounting for every kilowatt can be an uphill task. While some people have proffered that energy meters could be installed at every distribution point, others have their reservations.
Integrity and accuracy are issues that needs to be dealt with as the chorus of renewable energy grows louder. It then appears to be a stitch in time that blockchain technology has emerged with a resounding bang. How can blockchain change the world and what is its place for renewable energy?
Some of the glaring features of the blockchain that can be examined here bode well for renewable energy propagation. Let us look at these closely:
Immutability of Records
Records are important and without them, it is difficult to hold anyone accountable. This is the reason why the accuracy of records on the blockchain can be a solution to the limitations of renewable energy growth. On the blockchain, once records are created, they cannot be mutilated, this makes them persistent.
In view of this, whatever gets generated as power through renewable energy platforms can be monitored on the blockchain. Connectivity apps that can make this possible are available in abundance. Blockchain energy innovation can boost renewable energy efforts with these possibilities.
Conflicts over metered records and pricing can sabotage energy distribution, and with a solution in place, this can be avoided. So, data persistence, therefore, is made possible with blockchain technology, and this provides a ready solution that can be adopted.
Closely aligned with recording accuracy is the issue of transparency. Stakeholders want to be sure that the data provided is transparent always. The input and distribution process for renewable energy has to be transparent. How this will work with blockchain technology is predictable.
On the blockchain, irrespective of the consensus mechanism adopted for its operation, the input-output process is traceable. Every decision reached is sealed with a hash, and this attaches every detail used for an outcome to the hashing. Anyone with an access right can view and ascertain the details provided.
This is a laudable blockchain feature that makes renewable energy tracking a done deal. The parties to the transaction will be able to make decisions or appraise the same based on a transparent process.
Having real-time access to data makes a world of difference. In a sector where multiple stakeholders are on board, this is inevitable. The design and application of blockchain technology comes in handy here. Inquiries will be made, and queries will need answers. This can get resolved with instant data access.
Anyone can access a public blockchain from anywhere on earth with an internet connection. For a private blockchain, the same can happen if the user has the right credentials. So, at any point in time, the user, the energy right owner or distributor, can access the needed information.
What this can do is to reduce avoidable friction and mistrust. As long as data access is guaranteed, the fortunes of renewable energy can grow in leaps and bounds.
One of the fundamental driving forces of blockchains is decentralization. What this means is that the absence of centralized authority is assured. The use and access are governed by a set of rules or laid-out procedures. So, as long as the rules are adhered to, the functionality of a blockchain is guaranteed.
The idea of renewable energy driven by the blockchain revolution is viable. Many energy producers can operate in the mix, and not be bogged down by bureaucracy. Automation and clear processes promote efficiency, and for blockchains, several apps make these touchstones a possibility.
Blockchain and Smart Contracts
One other area that renewable energy frontiers can be extended is through the use of smart contracts. The idea of a smart contract was first announced to the world by the Ethereum blockchain. It simply means that an agreed set of rules are present that are self-executing.
Smart contracts reduce documentation, time wastage and saving of related resources. The same smart contract can be used by multiple persons as they subscribe to a renewable energy provider. When it is executed, the subscriber gets a unique ID and a password for access.
In this sense, an individual will be able to subscribe to a renewable energy provider without bottlenecks and delays. The process will be smooth and service delivery can be expedited across the board. Smart contracts cannot be hacked, and without the password provided, no one can access its terms and benefits.
In a clear sense, renewable energy with its peculiarities is more suited to witness exponential growth with blockchain than any other alternative. Smoother processes, accountability, time-saving, and transparency are all derivable blockchain benefits.
As the blockchain evolution unfolds, there is no doubt that more areas of life will be impacted. In mankind’s search for faster processes, efficient gateways, and credible outcomes, the blockchain is a huge solution.
The growing blockchain adoption around the world will revolutionize renewable energy delivery in the days to come.
Denise Quirk is a Health Advisor who is fascinated by Crypto and Blockchain Revolution. She is a believer of transforming complex information into simple, actionable content. She is keenly interested in finding the value of the crypto world. She consistently writes for Coin Review. You can find her on Linkedin, Twitter and Facebook.