When it comes to technology, one of the industries that has always been open to change is the energy sector. For decades, businesses have been striving for ways to reduce their carbon footprint and increase their environmentally conscious efforts. Technology has allowed these efforts to expand and blockchain is among the solutions that will impact the energy sector for good.
While blockchain is commonly seen in the financial industries as the foundation for cryptocurrency like bitcoin, it is becoming more popular in the energy sector. In September 2020, the Global Manufacturing and Industrialization Summit (GMIS) revealed a new application called green energy as part of their project, The Green Chain Initiative. This project aims to utilize blockchain and its benefits to funding renewable energy across the globe.
Blockchain will be used to enable global crowdfunding for green energy projects. Blockchain is highly secure and will allow people to complete transactions both quickly and safety. Through the Green Chain Initiative, GMIS will also develop their own form of cryptocurrency that can be used to purchase sustainable products produced by manufacturers that are a part of the initiative. From crowdfunding to sustainable production and green purchases, blockchain will allow every individual in the process play a part in promoting eco-conscious decisions.
In addition to GMIS, there are numerous organizations that utilize blockchain in various ways. When it comes to understanding blockchain's energy sector applications, it can range from highly speculative like peer-to-peer energy changing using cryptocurrency to more incremental tasks that come with unique challenges such as operating power grids. The organizations in the energy sector are applying blockchain and its distributed ledger technology to track renewable energy from the point of creation to trade.
GMIS was not the first organization to take advantage of blockchain's offerings and convert its benefits toward the energy sector, in fact there are hundreds operating in the energy space and they have raised millions of dollars since. Blockchain will not change the industry overnight but the continual growth in use worldwide as well as financial gain shows promise for blockchain and its impact on the energy sector.
The world of blockchain and cryptocurrency still holds a lot of unknowns so the impact of blockchain on the energy sector will reveal itself in time. The success will likely become more evident as both blockchain technology and the energy sector evolve over the next few years. The leaders within the energy sector understand the consumer demands and evolving technology will guide their industry where they need to go. Blockchain-based eco-friendly energy solutions are not the only way to reduce carbon footprints but on the other hand are making sustainability much more accessible in today's world. As blockchain evolves, it can (and will) change the energy sector for years to come.