Where does blockchain come from?
This is not the first article on Blockchain and rest assured that it will not be the last one you read. The Block Chain is the basis of the crypto-currencies technology. Virtual and intangible currencies that have come to change the rules.
This technology has created a “credible” and valuable currency, which does not depend on centralized entities (central banks) for the validation of their transactions. It is a secure and real-time method for transferring value. It ensures consensus regardless of the origin of those who use it. It is what we call a paradigm shift that will condition the way in which we understand financial services.
However, what does this have to do with energy? Considering that power operators do basically manage flows of data (economic, consumption, etc.), we can intuit that this market as we know it can undergo a major change and of great repercussion.
In fact, there are already projects in progress in different parts of the world (based on blockchain and energy), Grid Singularity, Nasdaq, L03, Australian Sun Exchange… that are the proof of this fact. Precisely an important component of all these projects (if not the most important) is the Smart Grid part, ie how to bypass the system operator or, alternatively, to guarantee enough reliable forecasts to allow the system operator the proper control of the grid.
The decentralization of a service such as the power one is already a challenge. Let’s consider that the electricity systems were born from the Generation-Transport-Distribution-Consumption flow under the supervision of Market and System Operators that certify their operation. Only now it begins to face the great challenges of Distributed Energy Resources (DER).
The emergence of smart meters, more efficient storage systems and renewable generation at the domestic level is a major change. The consumer empowers and suddenly becomes a “prosumer” (producer / consumer) capable of putting in crisis the existing business models.
Technological advances are putting in difficulty the ability to adapt regulations to the new reality and often the main barriers to the development of the new model are indeed regulatory barriers.
But what impact is it having in this sector?
(Check our site to read the full story)