Recently, many transformations taking place in the energy industry have been observed, which was largely due to the increased awareness of fossil fuels. More countries are considering switching to renewable energy while turning to different alternatives to finite resource fuels, such as Petroleum. At the same time, the global water crisis is deepening, caused by the increased demand for water. Technology may be the solution to these problems blockchain.
Blockchain in the power industry
Experts estimate that in the next few years there may be a significant increase in the share of technology blockchain in energyin the peer - to peer model to be precise. Innovative projects are implemented based on decentralized networks of entities that produce and transmit energy from renewable sources to each other. This solution helps to significantly reduce energy costs. On the other hand, it is also associated with a great infrastructural challenge. Electricity can be transmitted only through power lines and power poles, therefore the popularization of P2P networks requires thorough transformations of the entire distribution system.
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Currently, one of the main areas related to the energy sector in which blockchain technology can be used are the so-called green certificates, denoting property rights forming the subject of trade not related to electricity trade. In other words, these are confirmations of purchase of renewable energy.
Currently, due to limited possibilities, they are issued only on the basis of forecasts. This is where the blockchain technology, used by many companies to monitor energy from renewable energy sources, could work perfectly well. This would allow certificates to be issued based on more accurate data, by connecting a solar panel or a windmill to the blockchain. The megawatt hours of renewable energy they generate would be recorded on the blockchain network, after which they would receive a green certificate.
As for oil and gas, their extraction processes are unlikely to benefit from blockchain technology. Nevertheless, these raw materials are traded, and the financing of trade in this area is quite a challenge. Blockchain would not only streamline the entire process, but would also make it more transparent.
Blockchain technology can also be successfully used in the water industry. This is particularly important in the context of the ongoing global water crisis. Foundation World Economic Forum estimates that currently up to 4,5 billion people have limited access to basic sanitation services. Moreover, this problem may soon affect developed societies as well. In 2050, the deficit in the global water supply may reach even 40%.
One of the water projects based on blockchain technology is Waterchain, however, for now, this technology is only used for crowdfunding.
Funding is intended for projects aimed at improving the water management situation. However, it should be emphasized that this is only the beginning of the implementation of blockchain-based tools. This technology can significantly contribute to ensuring the sustainable management of water resources in the future, and hence - better access to it.