blockchain in the energy & commodity markets
posted 10 months ago
posted 10 months ago
Author: James Warren | Managing Director, Europe
A blockchain is a continuously updated record of cryptocurrency transactions, first introduced to keep track of all Bitcoin transfers in a digital format. Blockchains contain data blocks which are connected through cryptographic validation, and link back to one another to form an unbroken record or ‘chain’ of data. This is stored across the digital landscape, with blocks existing in a ‘distributed’ pattern across multiple computers simultaneously. Energy and commodity markets are seeking innovative ways to use this technology to improve, streamline and secure their current processes.
Due to the digital nature of blockchain technology, the system is more reliable and secure than single-server or traditional paper filing methods of keeping records. The transactions cannot be altered or tampered with in any way, which is ideal for preventing fraud – or providing evidence in a legal capacity.
The distribution and multiple-copy system of hosting blockchain data provides any agency with the ability to access that data. This enables increased transparency and elevated trust across energy and commodity markets and businesses.
Rather than tracking financial data, many companies are exploring the possibilities of recording transactions of physical components via blockchain ledger technology. Due to the increased transparency, accuracy and security of the system, it is set to change the way transactions are recorded throughout the energy and commodity markets.
Blockchain technology is also expected to increase overall efficiency levels across these markets, as automatic data recording and greater ease of access will speed up data checks and vastly improve current filing methods.
Renewable energy suppliers have begun implementing blockchain technology, to track energy usage in properties with self-sufficient solar panels. One of the main challenges for the energy industry has been estimating the prices of energy bills, when properties supply some of the energy used from a renewable source. But with blockchain data collection methods, TransActive Grid in New York have begun trialling a system which tracks energy usage from power companies, reusable energy sources, and even energy re-entered into the system from properties with renewable energy supplies.
As more and more energy and commodity market companies trial systems based on blockchain technology, there will be a range of results. Some systems will not work as well as expected, while others will unexpectedly take off and produce great results.
The only certainty is that blockchain technology is about to transform these markets. If you want your business to stay on top, now is the time to talk to one of our consultants to find the next generation of employees to boost your brand, and make sure that the technology is put to the best possible use for your company.
For those seeking a new position working with blockchain technology, or a new challenge within the energy and commodity markets, it's a great time to set up your profile and see what this exciting sector has to offer you.