{"id":16801,"date":"2023-11-23T17:14:01","date_gmt":"2023-11-23T16:14:01","guid":{"rendered":"https:\/\/affidaty.io\/blog\/?p=16801"},"modified":"2023-11-23T17:14:05","modified_gmt":"2023-11-23T16:14:05","slug":"energy-blockchain-market","status":"publish","type":"post","link":"https:\/\/affidaty.io\/blog\/en\/2023\/11\/energy-blockchain-market\/","title":{"rendered":"Blockchain applied to energy traceability"},"content":{"rendered":"\n
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Introduction<\/h2>\n\n\n\n

Energy<\/strong> is a fundamental resource for economic and social development, but the way it is produced represents a significant component of the environmental impact of human activity. Tracking the sustainable origin of the energy<\/strong> we consume is a key element both from the perspective of informed consumers and that of producers and distributors who genuinely want to position themselves as honest players in the market<\/strong> and avoid the phenomenon of falsely attributing ecological characteristics to products or services, including energy<\/strong>. This phenomenon, known as greenwashing<\/mark><\/em>, essentially involves making people believe that a company is doing much more for the environment than it actually is.<\/p>\n\n\n\n

In this context, blockchain<\/strong> emerges as an innovative technology that can improve energy<\/strong> traceability, i.e., the ability to reconstruct its origin and path along the supply chain. The main value of blockchain<\/strong> is to provide mathematical proof of the state of data so that different parties in a transaction can agree on the result even if they do not know or trust each other. While commonly associated with cryptocurrencies like Bitcoin, blockchain<\/strong> technology can be used for virtually any type of transaction involving the digital ownership of a good or service. These technologies rely on cryptography and established consensus mechanisms to ensure that transactions remain secure, and an entire industry has emerged to apply blockchain technology to real-world challenges.<\/p>\n\n\n\n

In the context of energy<\/strong> tracking, blockchain<\/strong> can facilitate the recognition and valorization of energy<\/strong> produced from renewable sources (RES<\/mark>) and contribute to countering all practices in the energy sector<\/strong>. This article aims to analyze its potential and challenges concerning energy<\/strong> traceability, a very important use case in a context where it is complex for users (citizens and businesses) to evaluate and valorize the use of energy<\/strong> produced from RES in their activities.<\/p>\n\n\n\n

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The Electric Grid: Architectures and Research Areas<\/h2>\n\n\n\n

The traditional electric grid is currently characterized by a centralized architecture, where a single utility manages the entire network. However, the future electric grid is expected to be characterized by greater decentralization and a higher number of participants, such as Distributed Energy<\/strong> Resources (DER<\/mark>) 1<\/sup> and consumers. This transition towards a more decentralized grid presents a series of challenges, including the need to ensure trust and transparency. Blockchain<\/strong> is a promising technology to address these challenges and can be used to securely and immutably record energy<\/strong> transactions, allowing all participants to access the same information. This can help reduce costs, improve efficiency, and increase network security.<\/p>\n\n\n\n

Among the numerous actors involved in researching technological advancements in the energy sector<\/strong>, the American National Renewable Energy<\/strong> Laboratory (NREL) 2<\/sup> stands out. For example, it is developing systems that use blockchain<\/strong> to manage energy<\/strong> transactions, with the potential to revolutionize the energy sector<\/strong> by making the electric grid more efficient, reliable, and sustainable. In the scenario of a future electric grid, this technology could undoubtedly provide the following advantages:
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