The infrastructure to manage the growing demand for fossil fuels is costly and complex, so it’s no surprise that the industry is turning to bitcoin and blockchain technology for its future frameworks. The Bitcoin Revolution software offer trading features like artificial intelligence, trading bots, market analysis, live customer support and much more for bitcoin traders.
The integration of blockchain with the energy industry is a hot topic globally. It has far-reaching implications, not just on how we power our homes and drive cars but also how we store and generate our electricity.
The global energy industry is highly concentrated, with a few companies operating in oligopolistic markets. Energy markets suffer from significant barriers to entry in the form of capital expenditure, regulatory hurdles and political influence. Technological disruptions are required to address the massive inefficiencies and poor customer service levels that prevent the industry from achieving its true potential.
Impact of the energy industry on global economics:
The global seaborne trade in energy products is valued at $4 trillion annually, approximately 20% of total commercial physical trade. Products include petroleum oils, petrochemical gases, renewable fuels and other forms of natural gas. It employs an average of 200 million people, directly or indirectly employed across the value chain – from extraction, refining and distribution to consumption.
The energy industry accounts for more than 40% of the world’s energy demand. It provides the world with over 80% of the resources required to power our lives and generate the wealth of nations. However, despite its massive influence on our daily lives, it is not an easy industry to be a part of. Even if you are just an end consumer, you are confronted with multiple stakeholders daily. Here’s where blockchain technology plays a pivotal role in managing your supply chain interactions as you trade and buy fuel at retail centres:
Verifying that your dealer has a valid license to sell fuel and is registered with the regulator. Monitoring the quality and purity of your fuel and estimating the required amount of fuel in advance before you reach a refuel station are some areas where blockchain technology can help the energy industry. Let’s explore the benefits of blockchain in the energy industry in detail.
Management of renewable energy certificates with blockchain:
The trade of renewable energy certificates (RECs) is a burgeoning trend in the energy industry. When an organization sells the green power it generates to energy companies, RECs are created. They represent units of emission reduction, or certificates for carbon offsetting – and are one way for organizations to mitigate their carbon footprint.
Renewable energy storage is becoming an increasingly viable option for producers because it enables them to sell electricity at prices linked to market forces.
The Energy Information Administration (EIA) estimates that more than 20% of US electricity comes from biomass, waste, geothermal and hydropower resources. In the long run, this will help drive investment in biofuel and renewable energy programs by offering market incentives for generating electricity from renewable resources. In addition, due to the increasing demand for RECs, companies are looking at integrating blockchain technology with their processes to manage it.
How blockchain can help:
Integrating blockchain into the supply chain using RECs as an example will help reduce verification time by recording all data on a publicly accessible ledger. In addition, it ensures complete transparency and eliminates discrepancies or coding errors that usually crop up when multiple parties maintain records separately.
Enabling instant payments between parties involved in a transaction. It enables efficient and cost-effective transactions when only one party is involved and avoids lengthy settlement periods common in traditional fiat payment systems.
Electric vehicle charging and sharing with blockchain technology:
With the growing popularity of electric vehicles, car manufacturers are exploring new ways to facilitate charging at locations ranging from retail outlets to homes and offices. Tesla is leading the charge with its Tesla Station, a fueling station that uses solar panels and batteries exclusively to power up its vehicles.
It’s an innovative solution that combines green energy with solar technology, but it remains a niche market today because of the high costs involved in installing such stations. Blockchain technology integration can completely change this by offering productive and cost-effective solutions for charging stations for electric vehicles.
Tracking oil barrels with blockchain:
Energy companies are increasingly exploring areas like the Arctic to increase their oil production and revenue generation. However, as the oil industry is becoming increasingly complex, it needs solutions that can track critical inputs like raw materials and transportation of finished goods.
Blockchain can help them achieve this by tracking each barrel from extraction through to refinement, allowing the energy industry to monitor the production and delivery of their products more effectively. Instead of keeping track of individual barrels manually, blockchain solutions facilitate this process by enabling real-time tracking and proper documentation of each barrel’s journey. In addition, it helps ensure that barrels Odo not get substituted during transportation or swapping between companies when it is being swapped with competitors’ batches in refineries.
