Technology plays an important role in the welfare of humans as well as the earth. Nowadays, people live longer than before because of the introduction of new and advanced medical procedures. Apart from this, technology can also save the environment with cryptocurrency going green. Blockchain has the potential to fuel the green energy revolution and change the business world. Start-ups and large businesses making efforts to introduce the blockchain mechanism in their approach to develop blockchain based procedures and applications. Keeping this in mind we will further see how the blockchain mechanism is entering the world of renewable energy.
Blockchain- A brief intro
Blockchain mechanism works under a decentralized approach. It is a digitally distributed transaction system that allows secure transaction and data storage in peer to peer network. Integrated and immutable set of transactions are verified and saved as nodes. Earlier, for every transaction, a copy of data is sent from server to server to complete the transaction and additional charges were levied. Introduction of blockchain has abolished this double spending problem. Many banking, non-banking, and education system are introducing blockchain mechanism for the transaction to eliminate double payment issue. A blockchain is basically is a set of data that collectively represents a financial ledger where it records all the transaction. Each transaction is secured and cannot be tempered because of its digitally signed. Whenever a new transaction is introduced in a blockchain it checks its validity and authenticity i.e, history and signature and then a new block is added to the ledger. This introduction and find are known as data mining in the blockchain. Once added to the financial ledger, the transaction does not need a central or unifying authority for each transaction. The next change in block-chain technology might be the introduction of green energy.
Blockchain in the green energy revolution
In 2016, blockchain gained relevance in the renewable energy sector after an experiment in Brooklyn, New York. After this experiment, the introduction of blockchain in the energy sector got its actual vision. An industry working fully on the blockchain mechanism consumes more energy and utilities than a normal one. With this amount of wastage of non-renewable resources, there will be a time when this world lack these resources. However, 9 out of 10 people globally, believes that the world should be fully powered with green energy. Therefore, the implementation of green energy in the blockchain industry takes place. The monopoly of power companies is breaking through blockchain. Since 2010 till now, the consumption of renewable resources in the industrial and commercial sectors show slow and steady growth. Most of the people support the use of renewable resources all around the world. People want a clean and healthy environment where they can live and breath easily. Therefore, they are adapting green energy sources in their homes instead of non-renewable ones to eliminate the use of sources that releases greenhouse gases.
A study in the U.S has found that 35% of emissions of CO2 in the atmosphere is due to electric power generation. And, with the introduction of renewable resources like solar, wind and thermal energy, many countries are becoming less dependent on coal and other non-renewable resources. This issue is much bigger than we think, each individual needs to take measure to safeguard the environment from greenhouse gases. Frequent changes in technology giving the right to each consumer to control their energy consumptions yet utility market controls everything. Consumers can now become energy producers also. There are many energy generating system used by many consumers such as solar, wind, micro-hydro power, and hybrid solar and wind electric systems. Installing these electric systems at your place is quite expensive that is why utility market has a monopoly in supplying energy.
Not every industry can go green immediately because the installation of these electric systems is expensive. Utility industry prevents the consumers from choosing their power source. Apparently, a regulated market has allowed powerhouses to exercise a monopoly in the market. Power sources from the utility industry is a drawback for consumers as the prices rise irrespective of the profit margins, large utility firms use their power to earn more profit, and illegal certificates are market coal as a green energy source. Studies have shown that the value of the installation of solar energy plants can diminish the utility companies. With installing the solar energy plants, consumers making access energy than they need can store it for later or trade access energy with others or sell back extra power to the utility company. The grid of blockchain with green energy sources come to knowledge when consumers start getting the privilege to own and produce their own power. Therefore, people wanted to introduce a more convenient payment method for selling and buying this energy that is not handled by any ruling party. So, the need of blockchain mechanism in the utility industry arises.
Future of blockchain in the green energy revolution
People will get a new way to buy and sell energy. A new technology which will help in increasing demand and decrease costs. With the introduction of blockchain technology in green energy, it will give an overview to the consumers from where the energy is coming. Blockchain works on peer to peer system which will make it easier for the consumer to handle their accounts and transaction. They will know how much they are spending and where their energy is going. It is foresighted that the demand for renewable resources will grow with the introduction of blockchain in utility companies. The consumers will become large producers of solar and wind energy. With blockchain management the transaction will operate like an energy stock exchange where consumers will be able to purchase energy at variable rates and the cost of energy will depend on the fluctuations in the market not in control of any central agency.
The blockchain technology is a very vast concept and in future, if taken seriously will take over every industries’ traditional transaction system.