Blockchain a peer-to-peer organization with consumers. Instead

Blockchain is a system of computer networks used to store large amounts of data and keep track of complex transactions. It is designed to replace our current client-server model and give authority back to the owners of every change or transaction. There are many organizations now working on research and development in test centers around the globe, creating partnerships with blockchain developers to capitalize on the innovative potential of the technology. The first institution to experiment with this technology was the financial industry, hence the bitcoin. Now, green energy is processing the blockchain in order to trade energy in a peer-to-peer system with consumers. For the most part, energy is collected in large grid systems whose meters spit out data that is logged into a spreadsheet. That data is re-entered to create a certificate, then passed to another set of intermediaries who broker the dealing of the certificates, then the certificates are verified again by another party, etc. etc. Confused yet? Add on a transaction fee for each of these operations and you have a very complicated and expensive system that is vulnerable to misuse and lack of transparency. Regulatory hurdles, consumer acceptance, technical challenges, and financial intricacies have been longstanding issues in the energy industry, and ones that can hopefully be simplified or erased by blockchain technology. A blockchain system allows energy producers to trade energy in a peer-to-peer organization with consumers. Instead of dealing with the complicated grid system, the meter would write the data directly to a blockchain. This would allow people to trade energy with each other, instead of selling electrons back to the grid first. Picture an apartment building with solar panels and storage batteries as a mini-grid that can be tracked, recorded, traded, and used, and all of the transactions are handled by a blockchain. Power Ledger is an Australian company that just started and has already raised $26 million in an initial coin offering. Power Ledger is creating platforms for microgrids in Thailand and India, as well as two in West Australia. There are also some big-name companies like Shell and IBM conducting trials and microgrid projects. This idea is still in its infancy, but could potentially advance energy and utilities in the same way the internet ignited communications. As the energy market opens up, blockchain offers a better way to handle all the challenges involved in the $2 trillion dollars a year energy market and direct much-needed funds to the renewable energy industry. Also contributing is the Energy Web Foundation, a non-profit organization that is working on the privacy issues surrounding the use of blockchain technology for the energy industry. The company has developed a platform to standardize the applications of blockchain to help facilitate more efficient transactions. They are the network validators who can whitelist specific power plants or microgrids, and accelerate the technology on a global scale. Ten major companies have signed on as affiliates and they plan to begin by tracking renewable-energy certificates. Many experts agree that blockchain technology can ideally to transform modern energy grids. In the future, homes and buildings could be equipped with software that mechanically sells and buys power to and from the grid in real-time, cutting out all the transactions in the middle. Right now, this brand of decentralized energy makes up approximately 5% of the market and could grow to 25% of the market by the year 2025. Blockchains offer a viable way to deal with the complex relationships between users, retailers, and producers of renewable energy.