Page 60 - European Energy Innovation - spring 2018 publication
P. 60
60 Spring 2018 European Energy Innovation
BLOCKCHAIN TECHNOLOGY
Why Blockchain is a high
potential Game Changer
in Utility
By Mirko Ross
Blockchain is more than Bitcoin. This concept of distributed ledger is an early stage technology which
establishes new opportunities for decentralized systems and business processes. This fits perfectly to the
future challenges of utility industries and has the potential to be a game changer.
While I am writing this computing efforts or miners. Bitcoin the transactions in these networks
article the Bitcoin creation is a result of a computing do not require a massive power
crypto currency price competition, where miners can raise consumption of Bitcoin anymore.
has fallen to $6.000 their chances by adding computing
from its peak of $20.000 end of 2017. power to create new blocks for the Let’s face the bright side of Blockchain
When this article is published the price blockchain. This process is called and what value it can add to utility
chart can be completely turned up “proof of work” and it is exclusive industries and have a look on
or down. Talking about the charts of performed by miners. applications domains and how the
digital currencies as Bitcoin, Ripple or technology is already used to improve
Etherium is gambling. But furthermore, The majority of Bitcoin mining is processes and to create new business
this gambling is distracting from the happening in China and its electricity models.
ongoing revolution beyond this digital hunger is appeased mostly by coal
currency hype. plant sources. Early January of this BLOCKCHAIN IN MICROGRIDS
year the Bitcoin Network annual FOR COMMUNITY BASED ENERGY
All in common the technology power consumption was 39 Terrawatt MANAGEMENT AND TRADING
blueprint of this crypto currencies hours. A single transaction in the In November 2016, the US based
coins is designed to enable trusted Network, for example to move a startup LO3 announced a pilot
transactions in decentralized networks, Bitcoin from a wallet to another, in Brooklyn for blockchain based
where all transactions are stored in requires 335 Kilowatt hours. In other energy management and trading.
distributed ledgers. It’s an early stage words: one single Bitcoin transaction The Brooklyn microgrid connects
technology and you can compare the power consumption is equal to the all stakeholders on a local level.
maturity of its role out with the state daily power consumption of 11 US Local electricity generators such as
of the Internet in early 90s. But the households. renewable sources, energy storage
current success of Bitcoin as a trusted providers and consumers will be
network reveals the huge potential This bitcoin proof of work principle has connected on a dynamic marketplace.
of the underlined decentralized become a significant negative factor
ledger technology. There are several for climate change. Even Chinese In this microgrid the electric loads
connections of blockchain to energy government considers a restriction are still connected to the centralized
sector. Good and bad ones. Let’s start of mining to embank the power power grids. But when the microgrid
with the shady side and then turn to consumption in mainland China. That’s systems detects an outage, it can use
the bright outlook. one important reason why alternative its own power generation and storage
distributed concepts are required to capabilities to serve the local electrical
First Bitcoin and other digital validate transactions in Blockchain load. As a result the blockchain based
currencies are a mess for mankind’s world. Promising alternative solutions peer-to-peer architecture makes
goal to reduce carbon footprint. Today are using a proof-of-stake principle renewable energy more accessible
most transactions in blockchains are where the validation is done by digital and keeps the community resilient
based on a proof of work principle, currency owners or by participants to outages. “We're focused on
where new transaction blocks are using mathematical models like trans active energy. LO3 empowers
needed to be calculated first by “tangle” or “hashgraph”. All in common communities to take control of their
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