Blockchain and the Future of Energy

share save 171 16 - Blockchain and the Future of Energy

North American Clean Energy | Jul 15, 2018

blockchain and clean energy - Blockchain and the Future of EnergyBlockchain is coming to the energy world and its impact will be massive. It will accelerate the transition to renewables and give us real and immediate ways to combat global warming, incentivize the production of renewable energy, and replace fossil fuels.

What is blockchain?

If you’ve heard of Bitcoin, blockchain is the technology that powers it. Blockchain allows data to be recorded on a distributed ledger in a way that cannot be changed.

Why does it matter?

The key benefit of blockchain as a technology is that it enables parties that do not know each other or trust each other to do business together and still feel secure.  Applications running on the blockchain can take advantage of smart contracts that trigger certain events (for example, payment) when particular milestones are met – so long as some form of proof is presented that a particular milestone has been met.

More:  Blockchain has the potential to do amazing things, but it needs a reboot

Together, blockchain as a technology, and the advent of smart contracts running on it, have the potential to change everything, much the same way that internet technology changed everything in the late 90s.  In this analogy, Bitcoin is a lot like the Mosaic/Netscape browser. It’s an example of the dramatic and disruptive effects of blockchain technology:  “Look, Ma! Instead of government issuing currency, a non-profit foundation can issue its own currency and have the market determine its value!” Bitcoin is only the beginning of the many changes blockchain will deliver.

How will it change the energy markets?

In the energy sector, we expect blockchain to have a massive impact. After all, the future of energy lies in renewable energy technology. And unlike fossil fuels, renewable energy relies on a set of assets that are more dispersed. In the future, many more businesses will find it advantageous to produce their own energy and consume it.  Already, prosumers are finding it advantageous to put a renewable energy power plant on their roof of their homes – in the form of solar panels.  These trends will be accelerated by the availability of low-cost battery technologies designed for both industrial and consumer use. Demand response and load management will also be key to building power plants to get to 100% renewable.

A distributed model

Power markets are moving from a centralized model to more distributed model. The fundamental conditions required to make distributed power markets work well are:

  • automated production and consumption tracking
  • validation
  • payments
  • transparency
  • incentives
  • security

These improvements will require a distributed, self-organizing system that reduces friction, routes around regulatory obstacles, and connects fractured markets.

That’s whyblockchain is key. The distributed nature of blockchain provides an unprecedented level of trust and transparency. This enables businesses to feel confident in transactions that require a high degree of trust. Breachingthe security of a central database is one thing – trying to fool a decentralized, global network of databases is almost impossible. The result is a reduced need for middlemen, faster transactions, and lower expenses than traditional centralized models.

See:  How Blockchain is Impacting Canadian Fintech Markets

We’ve seen the impact of thisalready with cryptocurrency; Bitcoin and blockchain solved the double spending problem (i.e. spending the same digital currency twice) by ensuring distributed consensus. As a result, cryptocurrencies can be spent internationally in seconds, at low transaction fees, while working around normal third-party middlemen like banks. This has roiled the financial industry. Get ready for the same thing to happen in energy.

A fundamental shift

Blockchain will enable a fundamental shift in the distribution of energy by enabling people to trade energy among themselves. This will stimulate more renewable energy projects and accelerate the transition away from carbon-emitting electricity generation. Tokenization will allow producers to seamlessly connect with investors.

As a result, we’ll gain the ability to openly and securely verify/track/exchange energy and related data. This will strip away inefficiencies in existing markets and create brand new markets as well. Peer-to-peer (P2P) energy trading marketplaces will use blockchain to create an immutable, open, and secure, decentralized record of transactions.

The resultwill beautomated processes and transactions, significantly reduced costs, and inherently trustworthy sources of verified data. Also worth mentioning: Enabling data-driven investments will includetraditional utilities, not destroy them. They will allow smart cities, municipalities, city planners, and communities to adopt new technology and cooperate to reduce climate change, provide cleaner and cheaper energy, and create a more secure power grid.

Benefits

Some examples of how blockchain will help the energy sector...

Open up markets

The ability to aggregate and exchange secure and trusted data opens carbon offset markets to the approximately 90% of carbon emissions not covered under existing programs.

Eliminate middleman fees

People who have rooftop solar systems often have to pay a hefty fee to the utility company. The blockchain will eliminate these fees.

Improve reporting

The current reporting system is flawed; data is often self-reported (“I made four kilowatts” or “I hired a consultant.”). Plus, it's very expensive. Instead of going to a utility and just sitting there, data will be immutable, open, and verified.

More:  WEF’s Sheila Warren: blockchain is the door to new digital reality

Reduce waste

The blockchain will minimize fraudulent energy production data. By capturing immutable proof of energy production, running open-source estimators to verify, and layering in blockchain to enhance security and trust, this challenge can be solved in a relatively low-cost, low-touch way. This not only cuts down on bad actors and bad data, but also creates a more robust incentive market by improving trust and accuracy.

Fix renewable energy incentives

Incentive programs have been around for decades, but they’re plagued by fraud, and ineffective at addressing the core issue of carbon emissions. Additionally, these programs tend to be location-specific, relatively complex to participate in, and onerous to administer. Blockchain, smart meter, and “oracle” technologies will establish a more trusted, efficient, and effective system for tracking and rewarding carbon displacement via renewable energy production.

Reduce shipments

Blockchain will help create an increasingly decentralized logistics processes (compared to today’s highly centralized version). The ability to administer even the smallest shipments at minimal cost translates into a reduction in shipments. This, in turn, will lessen the need to pool everything together in big warehouses.

Continue to the full article --> here

 


NCFA Jan 2018 resize - Blockchain and the Future of EnergyThe National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with cryptocurrency, blockchain, crowdfunding, alternative finance, fintech, P2P, ICO, STO, and online investing stakeholders globally. NCFA Canada provides education, research, industry stewardship, services, and networking opportunities to thousands of members and subscribers and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: ncfacanada.org

Click for News:

latest news - Blockchain and the Future of Energy

 

TechTalks | Andrey Sergeenkov | Feb 12, 2020 As 2018 drew to a close, crypto skeptics were ready to write obituaries after the devastating bear market that year. Talk of blockchain and cryptocurrency demise was rife among seasoned analysts. Just over twelve months later, the industry has shown remarkable resilience to rebound back. Regulators are a segment of stakeholders who seem to be appreciating that crypto is here to stay, with Federal agencies in the US and Chinese authorities praising the potential of this technology in their respective countries’ digital future. Blockchain technology has gained independent credibility over and above its application in cryptocurrency. The opportunities are endless as the emerging enterprise sector continues to draw plaudits. So far, this technology has grown in spite of regulatory infrastructure rather than because of it. A suitable regulatory climate is essential for widespread adoption. See:  The Decade in Blockchain — 2010 to 2020 in Review This is how Jason Lee, Vice President of NEM Foundation, describes the industry’s evolution: “2017 was the year of the blockchain craze. In 2018, we hit the brakes towards the end of the year. For 2019 and the start of 2020, Don Tapscott at the World Economic ...
Read More
blockchains - Blockchain and the Future of Energy
Betakit | Isabelle Kirkwood | Feb 10, 2020 PwC Canada and CB Insights have released the MoneyTree report on Canadian investment trends for the second half and full year of 2019 (all figures in USD). “Increased competition for funding from global investors has created a healthy funding environment for Canadian startups.” Last year saw Canadian venture capital (VC) funding rise to a record-setting $4.1 billion. Although Canadian funding experienced an 11 percent decline in deal count last year, the report tracked a 16 percent increase in year-over-year funding. Some massive rounds from last year were not included in this year’s report, including Verafin’s round, as the company did not disclose the debt and equity break out, and Sonder’s $210 million raise as the company is now headquartered in the United States. A strong year for AI, FinTech, cybersecurity Artificial intelligence companies saw increased investor attention in 2019, investment in Canadian AI companies more than doubled in the second half of 2019. Last year’s funding to Canadian AI companies saw a 49 percent year-over-year increase in 2019 to $658 million with deal count reaching a new record at 57 deals. See:  The paradox of 2020 VC is that the largest funds ...
Read More
funding by region 2019 - Blockchain and the Future of Energy
Forbes | Billy Bambrough | Feb 18, 2020 Samsung, the South Korean technology giant and creator of the Galaxy smartphone range, could soon become one of the biggest drivers of bitcoin, crypto and blockchain adoption. While bitcoin traders and investors are focused on the upcoming bitcoin halving, a looming U.S. bitcoin crackdown, and rocky crypto trading volume, Samsung is putting the power of bitcoin, crypto and blockchain in people's hands. Last week, Samsung, which makes up 19% of global smartphone sales and last year sold almost 300 million phones according to data site Statista, unveiled it latest Galaxy smartphone range with its new flagships the S20, S20+ and S20 Ultra models. These new 5G enabled smartphones build on the Galaxy S10 ranges' bitcoin, cryptocurrency and blockchain support, which last year was revealed to boast a built-in bitcoin and cryptocurrency wallet. "We created a secure processor dedicated to protecting your PIN, password, pattern, and Blockchain Private Key," Samsung wrote on its website, announcing the new S20 Galaxy phones. "Combined with the Knox platform, security is infused into every part of your phone, from hardware to software. So private data stays private." Samsung's so-called Blockchain Keystore was introduced last year, initially with ...
Read More
Samsung - Blockchain and the Future of Energy
Bank Innovation | Rick Morgan | Jan 22, 2020 HSBC is improving payments for its business clients through a suite of tools launched last week called Treasury APIs, which are designed to speed up payments for small businesses and large corporate clients alike.  HSBC’s Treasury APIs embed payment capabilities into other workflows. According to the bank, this allows treasurers to make payments from their own workstations without logging into a proprietary bank platform. Clients receive confirmation that a payment request has been received and can track payments from their accounts to recipients. Nadya Hijazi, head of digital, global liquidity and cash management at HSBC, said clients using the tool include e-commerce platforms, treasury teams and mutual fund teams.  The new products let HSBC business clients pay suppliers more quickly; Hijazi said payments that used to take anywhere from one or two days in the past now take about 10 or 20 seconds.  HSBC, which is headquartered in London, has $2.7 trillion in assets. Treasury APIs are now available in 27 markets throughout Asia, Europe, the Middle East and the Americas. The bank piloted the tools in India last summer.  See:  HSBC Canada Breaks from Big Six Banks in Call to Encourage Fintechs In addition to paying suppliers, HSBC business customers can also issue ...
Read More
bank innovation - Blockchain and the Future of Energy
Investment Executive | James Langton | Feb 12, 2020 Regulators grapple with crypto trading Global securities regulators are monitoring the emerging crypto asset sector, but aren’t yet seeking to establish global standards for crypto trading platforms. The International Organization of Securities Commissions (IOSCO) has issued a report detailing the risks associated with crypto trading, including concerns about platform access, asset safekeeping, price discovery, transparency and conflicts of interest. See:  SEC Commissioner Speech: A Proposal to Fill the Gap Between Regulation and Decentralization Many of these same issues arise in the regulation of traditional securities trading too, the report noted. So, to the extent that particular crypto assets are considered to be securities, “the basic principles…of securities regulation should apply,” the report said. However, crypto trading platforms may also raise novel regulatory concerns due to their particular business models, IOSCO warned. The report said that some regulators have determined that their existing frameworks for overseeing traditional trading venues will also apply to crypto trading, but that some are also considering new requirements “to account for the novel and unique characteristics” of crypto trading. The group’s report — which was prepared by an IOSCO committee led by the Ontario Securities Commission (OSC) — ...
Read More
contemplating regulation - Blockchain and the Future of Energy
Wharton Knowledge | Kalin Anev Janse | Oct 10, 2019 Can Fintech Make the World More Inclusive? The potential gains for the start-ups driving fintech (financial technology) are obvious. But the possibilities for extending financial services to the underserved – or those without services at all – are already being realized. With proper oversight and regulation even more is possible, notes this opinion piece by Kalin Anev Janse, secretary general and a member of the management board of the European Stability Mechanism (ESM), the Eurozone’s lender of last resort, and Gong Cheng, senior economist and policy strategist at the ESM. “It is thus essential for researchers and technical experts to shed light on the considerable social impact and promise fintech is offering and to find solutions to contain potential risks.” Financial inclusion – making banking services accessible and affordable to everyone globally – has been a buzzword for the last few years. Technology-based financial services have propelled innovation to “bank the unbanked” making daily financial operations accessible and user friendly for almost everyone – especially people who had no access to banks before. Emerging markets like China, Kenya and Indonesia are leapfrogging the developed world. So – how is fintech making the ...
Read More
financial inclusivity taxi - Blockchain and the Future of Energy
Coindesk | Nathan DiCamillo | Feb 13, 2020 Fresh on the heels of an $18.3 million Series A funding round in August, crypto lending startup BlockFi has secured a $30 million Series B. Announced Thursday, the new funding will help the firm expand both its product offering and geographic footprint. “We decided to opportunistically raise the Series B to expand the balance sheet and give ourselves the ability to invest in the things we’re doing this year,” BlockFi CEO Zac Prince said in an interview. The Series B was led by Peter Thiel’s Valar Ventures with participation from repeat investors Morgan Creek Digital, PJC, Akuna Capital, CMT Digital, Winklevoss Capital and Avon Ventures. New investors included Castle Island Ventures, Purple Arch Ventures, Kenetic Capital, Arrington XRP Capital and HashKey Capital. Having Hong Kong-based HashKey as an investor will help BlockFi expand into Singapore later this year, Prince said. While the company has been serving customers in the region, this would be its first physical presence there. See:  Why DeFi’s Billion-Dollar Milestone Matters In the Asia-Pacific region, BlockFi expects to attract a lot of institutional customers, Prince said, given the number of mining companies, asset managers, exchanges and market makers that ...
Read More
Peter Thiel backs Blockfi - Blockchain and the Future of Energy
Gowling WLG | Jason Coates | Feb 11, 2020 It seems that climate change awareness and interest in environmental, social and governance (ESG) issues among investors, politicians, millennials and society at large has reached a tipping point. This has led to new pressures and subsequent regulations, but also to new opportunities for all stakeholders involved. The Gowling WLG ESG Working Group has been established to help our pension trustee clients understand the law relating to ESG and to help them navigate the landscape, including the social and political backdrop, as it evolves. This is the first of a series of ESG-focused Insights to be published by our ESG Working Group. In this Insight, we highlight recent remarks by Guy Opperman and Mark Carney on climate change and pension schemes, we touch on new reporting and disclosure requirements for pension scheme trustees, and we finish by summarising key issues and questions for trustees to consider. See:  ESG ratings are confounding. For CSOs, that’s good news In future Insights, we will consider further the legal position for trustees in terms of statute and case law, for both defined benefit and defined contribution schemes, and discuss the practical implementation of compliance for schemes ...
Read More
ESG is coming 1 - Blockchain and the Future of Energy
DevEx | William Worley | Feb 11, 2020 OXFORD, England — The head of the United Nations Development Programme has outlined four key factors he says will define the future of development. In a speech at the Oxford Forum for International Development, Achim Steiner — the UNDP administrator who previously led the U.N. Environment Programme and the U.N. Office at Nairobi — highlighted how rapid global changes will affect development and should be embraced by professionals in the sector. e argued that the Sustainable Development Goals already encapsulate these challenges, describing them as a “manifestation of wisdom about the great risks of the 21st century.” 1. Inequality Steiner said the economic paradigm of the last century, while imperfect, was “incredibly successful.” See:  Social equity must be central to urban tech innovations “Deficiencies should not mask the story of development success … We live in a world today that I think nobody in the 1850s would wish to trade in terms of possibilities,” he said. “But the era of the 20th century is over now — that period where we thought that science and technology allows us to exploit planet Earth … to create extraordinary wealth … but at what price?” Steiner said recent ...
Read More
Achim Steiner UNDP - Blockchain and the Future of Energy
NCFA - KABN Release | Feb 13, 2020 Digital Identity program to be launched at 20: RISE TORONTO, ON (February 13, 2020):  The National Crowdfunding & Fintech Association of Canada (NCFA) and KABN Systems North America Inc. (KABN NA) announced today they have formed a collaborative partnership to promote Digital Identity management and usage in Canada through a 3 year exclusive partnership launching at the 2020 Fintech and Financing Conference and Expo (FFCON20) to be held in downtown Toronto on March 23-24, 2020. With finance and fintech touching virtually every business and entity of people’s lives, the NCFA and KABN NA will be embarking on awareness and education programs on the value of having a secure, re-usable online identity that can reduce identity fraud and replace the need to show credentials every time you need to prove your online identity. KABN Systems North America Inc. is a Canadian Fintech company tha specializes in continuous online Identity Verification, Identity Management and Monetization and is currently in the launch phase of its digital banking and financial services platform, Pegasus Flyte. See:  Davos 2020: Financial inclusion and fintech is key to meeting the UN SDGs KABN NA recently announced that it has executed ...
Read More
ncfa kabn 500 250x75 - Blockchain and the Future of Energy

 

share save 171 16 - Blockchain and the Future of Energy