Blockchain will become an important foundation for future energy systems

Blockchain today is probably a lot like the internet was in 1993: even though most of us don’t know what it is, 10 years from now you’ll be wondering how society would function without it.

Blockchain is the technology behind the digital currency Bitcoin. It is a distributed ledger that tracks transactions across millions of independent computers that coordinate with each other. The combination of smart grids, prosumers and blockchain could create a transparent platform for cheap, clean renewable energy between the grid and homes.

In 1993, few people had heard of the Internet, and the iPhone was introduced in late 2007. Just imagine how much will change in the next 10 years. Just imagine how our lifestyle will be completely changed by this new 'Internet'. Imagine if blockchain is the next Internet, what will it mean?

For three years in a row, technology has been at the heart of DNV GL’s annual Global Opportunities Report ^[1] . This year, we seek to address the world’s main cybercrime challenges, a risk that only exists in the digital realm. As cyber dependency increases, the risk of cybercrime is rising dramatically in an interdependent world. Secure digital infrastructure is a key driver of economic growth and development.

With more than half of the world's population now living in cities, the integration of mass transport, energy systems and distributed renewable energy sources is becoming increasingly important, as is the growth of new services from information and communication technologies.

It is a truth universally acknowledged that technology is a driver of opportunity, and we have only scratched the surface of the treasures of blockchain. Compared to the Internet, which put information and content online, blockchain will give us a new system where trust and verification are largely automated.

It’s still hard to grasp the impact that blockchain will have. For most of us, we don’t need to work hard to understand this technology, just like most people didn’t need to understand TCP/IP and HTML after the Internet took off.

Energy Blockchain

The future electricity distribution system will consist of billions of interconnected endpoints, which may be microgrids, solar energy, smart appliances, sensors, and energy management software. It will be important to build a secure system that can achieve instant verification and autonomous transactions through these nodes as market conditions change.

Blockchain technology has the potential to make it easier to manage distributed power grids through “smart contracts” that tell the system when transactions should take place and follow clear rules for energy flows and storage to balance supply and demand.

Blockchain technology also has a direct impact on grid management and storage, and plays a central role in the rise of “virtual power plants”.

Bitcoin proved the value of blockchain. Now, researchers, investors and startups are exploring how to apply blockchain to energy and the broader Internet of Things.

Blockchain technology can disrupt energy systems and promote energy democracy. It has the potential to create a new world order, redistribute power and disrupt business models. We will explore the sustainable development opportunities of this new technology in our 2017 Global Opportunities Report, which is expected to be launched on January 24, 2017.

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1. The world's two most famous classification societies, DNV (Det Norske Veritas) and GL (Germanischer Lloyd), merged and renamed DNVGL Group↵