How will the block chain change the future of the energy sector?


nnRush when comment: block chain in the field of energy applications has also been one of the experts talked about the topic. This paper explores how the new technology will transform the energy field, analyzes the shortcomings of the current energy model, and highlights the advantages of the block chain in solving these problems. Finally, the author also introduced Energi Mine’s solution to prove that people have begun to work in this direction.n
nTranslated by: Inan
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What is a block chain?n
If you know nothing about the encryption domain, it is difficult to understand the block chain, which requires some technical knowledge. But the network has a lot of information about this groundbreaking technology and resources. The block chain is not open to use the product, it is not the same as other products.n
n”So what is the block chain, why do we need these daily consumers to pay attention to it?”n
nThe technology may have a significant impact on the future of the world economy, while changing and shaping our future lives.n
Block chains are a new technology that can rebuild the Internet and possibly avoid the legacy structure of the past. Trust exists in the core architecture of a block-chain network that has the potential to remove an intermediary or subvert its current mode of operation. This revolutionary simple agreement can use the de-centered public or private books to maintain transactions immediately and securely. No matter who is using it, it ensures a consensus, and this paradox shift will change how we understand the future of transactions, data and information, and how financial services.n
It is unquestionable that the chain-chain framework can virtually record everything and distribute any valuable things, as well as challenge and subvert the current central business model and energy sector.n
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The current energy supply chain modeln
Today’s global electricity market is worth $ 2 trillion, controlled by a small number of large players. Energy companies tend to sell more energy at the highest possible price.n
The nature of the electricity market to make it to the development of the center, more and more individuals and businesses through renewable energy to produce their own energy. However, they still sell this energy to large energy companies.n
The existing model of the energy market has four main problems:n
nCentralization – A small number of large energy companies serve millions of customers – the price owner.n
nnTransparency – poor market liquidity and controlled by financial brokers. Electricity is OTC over energy companies or banks, so there is no transparency to energy users.n
nnLack of energy savings in energy use – energy companies make money by selling more energy, so they do not encourage users to change behavior.n
nnLack of competition – barriers to entry in the field are high, the complexity of regulation and the high cost of entering the market are two main reasons for monopoly operations in all major electricity markets around the world.n
nConsumers have shown more desire to control energy production and distribution. Many domestic consumers are now both power producers and power consumers, for example, through rooftop solar panels or wind turbines. This is mainly due to their incentives for financial and environmental issues, and the reliability of large energy suppliers is low.n
“We will see more consumers get rid of traditional utility models and use community plans or point-to-point trading arrangements to deliver energy demand,” said UK energy regulator OFGEM.n
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Future energy modeln
The emergence of block chains and smart contracts will have a huge impact on the way the energy market operates and the way it delivers value to consumers.n
In addition, advances in artificial intelligence (AI) and the Internet of Things (IoT), smart meters, electric vehicles (EV), the introduction of renewable energy and clean energy, and changes towards smart cities will create a smart grid and change our production and The way to consume energy.n
The smart grid will be able to connect to consumers who will produce and store energy for people in need through a peer-to-peer network while avoiding utility companies. All transactions will be stored securely and visually on the block chain.n
In this new model, the energy companies themselves will not necessarily be replaced, but their business model will be forced to adapt to the new economy.n
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