Energy has largely been centralized: a few public and private entities managed the production, storage, and distribution of the vital resource for billions around the world.
But there is already massive change underway. Consumers can now act as supply and storage for the grid. Production has become more variable because of dependence on renewable energy. And distribution has become more interactive and controllable with digitization, among other things.
But all this change has added complexity and inefficiencies that cannot be handled by current systems. As the grid is digitized, becomes real-time, and more pieces connect to it, we increase the vulnerabilities which is a matter of national security.
Solution:
A energy grid built on a blockchain with participation from public entities, private companies, and individuals.
- Allow private companies and individuals to sell excess energy and storage capacity back to the grid.
- Redistribute power automatically using smart contracts where the grid has a demand-supply mismatch.
- Secure the grid using private keys and only allow access through multi-signature authentication.
- Automatically payout carbon credits for energy produced using renewable sources.
- Create a marketplace for energy using smart contracts where auto bidders can be built to quickly respond to demand-supply mismatches.
The energy grid is changing at an unsustainable pace, and participants are feeling the pressure to build better systems. Blockchains offer not just a way to manage operations but to enhance them in ways not possible before.