Council on Foreign Relations (CFR) Talks Blockchain and Electric Power Systems Potential
According to the Council on Foreign Relations (CFR), Blockchain Could Make It To Electricity Industry
Even with different industries that do not feel the need to integrate cryptocurrency, blockchain is starting to soar. The utilities sector has many complexities that make it the perfect candidate for blockchain technology integration, like electric power systems. The Council on Foreign Relations (CFR) seems to believe that this is the next big step into the future.
The ability that blockchain has to transform the way that different industries log important information is an easy enough reason to use it for electricity as well. It is secure, fast, seamless, decentralized, and P2P friendly. The current state of the centralized power system aims to largely benefit from blockchain, helping it to transition from the present to the needs of the future.
CFR had recently posted a blog on the topic, saying,
“As utilities struggle to sustain reliable service, meet new policy objectives, and cope with rising complexity, innovators are peddling a putative solution: blockchain technology. Proponents of blockchain technology liken its potential to that of the internet three decades ago.”
The most useful aspect of blockchain to this industry is easily the peer-to-peer transactions, though there are some startups that are attempting to use DLT initiatives instead. DLT is essentially being adapted to making the ledger bigger, which means it can host virtual transactions. It also makes it easier for companies to sell their solar power and batteries in a simple way.
Even though this way of adapting DLT is extremely popular and trendy, CFR does not see it making progress through the years. Rather than adapting to the complex needs of the industry, it wants to completely overhaul the current power systems. That is what makes blockchain a better match.
There are plenty of companies that have used blockchain as a method of raising funds for projects that involve clean energy. Alternatively, the same technology is a useful way to trade and record the potential for sustainability, like the protocols needed for renewable energy and emissions volume.
Related fields that are seeing the helpfulness of blockchain include electric vehicles, though they still have not gained the traffic necessary for widespread adoption. Blockchain’s involvement would help to reduce the concerns of these vehicles, like the scarcity and sophistication of creating them, along with the ability to publicly charge them. With a streamlined process, the costs are reduced and owning these vehicles becomes more cost effective for both the engineers and the buyers.
Regardless of how the companies in the electricity industry aim to bring in blockchain, they will need to be regulated. CFR already has multiple recommendations on how to regulate this industry, while keeping the freedom of blockchain available. They also commented, in their blog, that the representatives in charge of these policy should allow blockchain ventures to demonstrate to them how the technology should be introduced.