Many different use-cases for blockchain have been tried and tested over the last years by startups, corporations and governments alike. Some of them have found real world applications but most have not made it out of a proof-of-concept phase. Building on interactions with major blockchain actors at national level, the B-hub consortium has identified a number of particularly relevant use cases throughout the different ecosystems.
Our series of blockchain use cases articles features examples that, while varying greatly in terms of sectors and usage, have in common that they are currently applicable, somewhat mature – underlying technology exists and is available on the market – and implemented.
This third article deals with peer-to-peer consumers energy management and trading platform. In this case, blockchain applications enables customers to transact in “decentralized energy generation schemes,” effectively allowing citizens to generate, buy, and sell energy to their neighbors.
Description and problem statement
The energy management industry has historically been highly centralized. Centralized energy distribution processes inevitably implies the presence of one or several intermediaries. This creates complexity, and thus higher prices for the end customers.
While the development of modern energy sources provides each household with the opportunity to become an independent producer and even a supplier of energy, the existing system only provides limited possibilites for prosumers to sell generated energy back onto the market.
Blockchain can ensure the creation of a decentralized network and marketplace of independent energy producers, and offers profit opportunities for individual investors.
Why is blockchain particularly relevant to address this problem?
Blockchain technologies prevent double data entry and act as reliable ledger for transactions monitoring and confirmation. It reduces dependency on a central actor and enables peer-to-peer trading.
How does it work?
Every transaction occurring on the energy marketplace creates a hash. Tokens are automatically added to, or deducted from the users. Simultaneously, the energy supply through the grid happens as long as the electricity user has enough tokens to cover the usage. This technological solution enables live billing.
What are some examples of implementation?
Energy Blockchain Labs is one example of implementation. The company has created an efficient, transparent platform that allows high-emissions organizations to control their carbon footprints and meet quotas by buying carbon credits from low-emission companies.
What are some examples of technology providers?
Want to see more blockchain use cases articles? Check out our first two articles on Notarization, timestamping and tamper-proof records and Traceable ownership records for secondary market trading of digital assets, and our country-specific perspetives on blockchain adoption.