According to a 2019 Global Market Insight Inc, Blockchain technology in the energy sector is expected to grow from $400 million in 2019 to approximately $3 billion by 2025.
Blockchain in the energy sector paves the way for process efficiency, sustainability, and flexibility. Huge power giants are increasingly adopting blockchain to overcome the growing security concerns of grids and networks, thereby stimulating technology demand. Enhanced trends to develop smart contract applications together with the ability to choose participants will increase the industry outlook.
Oil and gas corporations are specifically distressed about security and trade privacy. Blockchain solutions provided by Reactive Space in the energy market delivers data granting permission only and selective access to authorized parties coupled with lower overhead costs and lesser cash cycle times.
Core Benefits of Blockchain in Energy Sector:
Major benefits of blockchain in the energy market are as follows:
- Lower transaction costs
- Decentralized renewable grids
- Environmental sustainability
- Enhanced transparency for utility and grid operators
Use Cases of Blockchain in Energy Sector:
Here’s how Blockchain facilitates an accountable and productive mission for the production and consumption of energy market making progress.
Blockchain offers a reliable and efficient digital ledger for storing, tracking and executing transactions that can be used for both physical and financing trading across the complete spectrum of energy products. Energy trading transactions can be recorded instantly and on one platform without any intermediaries. Moreover, every new transaction is associated with executable code that verifies data, in the absence of human intervention.
Renewable Development Financing:
Building a new solar farm is a complex and slow process, blockchain helps to increase the financing process and alleviate risks via automation while simplifying contractual compliance. Also, blockchain facilitates selling future energy generation as tokens to increase capital for fractional ownership of solar panels.
Global Supply Network:
Cultivating hydrocarbons from the ground and converting it into a usable form is a complicated task. Currently, these processes are highly siloed and comprise of several levels and intermediaries. Deloitte, the largest multinational professional multinational network, is working on a platform that supports the entire end-to-end process. This is only feasible through a decentralized ledger that has the potential to deliver real-time speed and tamper-proof security.
Minimizing and Tracing Carbon Emissions:
76% of greenhouse gas emission is due to carbon dioxide which makes it the top rival for environmentalists. At the moment, carbon emission is most likely to hike from approximately 35 billion square metric tons to 40 billion tons by 2030. The only way to reduce this rate is to trace our personal and communal emissions and utilize this data to improve our behavior for good. Blockchain possesses the power to tokenize energy credits which allows to easily issue carbon offset credits. These credits can be bought by companies to empower adherence to emissions standards.
Need more information? Consult the experts at Reactive Space which can help you understand blockchain implementation in the energy market precisely. Book a free consultation now!