How Blockchain is Contributing to Green Tech
Since the launch of blockchain technology about a decade ago, it has become one of the most popular digital technologies. However, despite blockchain’s popularity, it is one of the major sources of pollution. Crypto mining is a highly intensive activity that requires heavy machine power.
This machine power is extremely dangerous to the environment. Furthermore, it could potentially worsen climate change.
There is no doubt that blockchain pollution is large-scale. However, there have been recent applications of blockchain within the realm of green technology.
For example, GRC recently invented an environmentally friendly cooling technology. It is to be deployed in blockchain mining centers. The cooling technology significantly increases the carbon pollution from mining activities. However, aside from inventions like this, there are other ways in which blockchain has contributed to green tech.
Green electricity payment has evolved over the years, alongside other utility payments. Currently, many users find it difficult to pay their electricity bills via traditional financial systems. Also, in many cases, users have to share payments for electricity utility. With blockchain, these payment systems are easily integrated. This significantly eases the process for users. Blockchain-based startups like Irene Energy and Treon have deployed blockchain solutions for green electricity payment and sales.
The rise of renewable energy has resulted in the development of smart grids. Smart grids are digital grids that utilize technology to track energy usage and make changes directed at energy efficiency. Currently, startups are developing blockchain-based smart grids. Blockchain is incorporated into smart grids by ensuring that transactions are conducted through smart contracts. For instance, WePower recently deployed a blockchain-based smart grid for use in Estonia. The smart grid monitors energy usage and provides a range of energy providers for users to choose from.
The immutability of blockchain technology could prove useful in improving the transparency of energy-related data. Data can be susceptible to manipulation and misreporting. However, we can achieve a greater level of transparency. This is by using blockchain to record, track and store energy-related data. Amongst other things, this would enable us to accurately track and report greenhouse gas emissions reduction and avoid double counting. In addition, blockchain can also be used in supply chains to trace and record the origin of energy resources. This way, the energy represented to be renewable can be confirmed as such. EDP group recently deployed blockchain technology to track the sale of renewable energy in Spain.
Peer to Peer Energy Trading
Many energy systems are deeply centralized. As the rise of renewable energy continues, energy firms would have to deploy systems that provide for energy retailing. Most importantly, energy users would be able to sell excess energy to other firms or users.
Conclusion Blockchain’s contribution to green energy will continue to expand in the coming years. No doubt, more countries and companies are moving to adopt the technology. Hence, blockchain will become increasingly important to secure a greener future.