Blockchain can be applied to new energy trading models

Crazy Review : The decentralized and disintermediation characteristics of blockchain allow it to be widely used in all walks of life, avoiding redundant processes and reducing costs. Now the utility sector has launched a large number of proofs of concept, including peer-to-peer electricity trading. In a new report from Navigant Research, the specific requirements for implementing energy blockchain are explored. It is believed that in the near future, energy blockchain will be widely used.

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A new report from Navigant Research explores the specific requirements for implementing energy blockchain, a win for peer-to-peer electricity trading.

Blockchain is a distributed ledger technology that enables peer-to-peer transactions without the need for a central market function. While its most widely known use case is the infrastructure underlying bitcoin, potential use cases are emerging in many industries, including utilities.

Blockchain is attractive in areas where there is a need to speed up transaction times, break away from centralized market control, reduce the cost of executing transactions, and ensure trust between different market participants.

Stuart Ravens

Stuart Ravens, principal research analyst at Navigant Research, said:

“While financial services have led the way in blockchain development, utilities are also beginning to realize the technology’s potential – a number of proofs of concept have been launched, and we expect many utilities to begin testing blockchain technology.”

“However, the most promising area for blockchain is P2P trading, where owners of distributed generation can sell their excess power to anyone who wants it.”

According to the report, using blockchain for P2P transactions could provide a flexible and less expensive way to process highly intensive transactions that are difficult to replicate in centralized systems, and could put consumers at the heart of smart grids.

The earliest applications of blockchain are unlikely to be in utilities, but rather in other interested parties, including owners of distributed energy resources and direct energy receiving startups.

The report – Blockchain-Enabled Distributed Energy Trading – discusses many of the specific requirements of energy blockchains and offers several practical recommendations for the industry.

The study analyzes the drivers of P2P trading and discusses the reasons why blockchain is attractive for supporting energy trading. Case studies, opportunities, and challenges encountered in implementing blockchain are also discussed in the report.