The Energy Industry is going through a transformation for a decade and the Utilities and Oil & Gas companies have been following a predictable path to SmartGrid and Digital enablement. This steady pace has recently been rocked by a radically new technology whose potential and pace of adoption has surprised even the harshest of critiques. Every industry is gearing up to adopt it in one way or another. Blockchain technology launched after the financial crisis of 2007-08, broke into public consciousness in 2012-13 with its iconic application – Bitcoin, a cryptocurrency whose jaw-dropping rise both puzzled and intrigued the general population. Ardent support led to its fierce but volatile rise. Since its inception, this esoteric cryptocurrency continues to reshape the global financial markets. Blockchain, the less-understood albeit foundational technology powering Bitcoin, is the real technological game changer, an innovation in some ways as radical as the Internet itself. It provides an opportunity to reshape the Digital economy, empower consumers and secure the digital world.
Summary: Blockchain is not just a new technology, but a new way of doing business that is impacting all industries.
Early indicators from implementations in Europe and Australia suggest that Blockchain can radically simplify energy transactions, reduce overheads cost and improve efficiency. The technology fundamentally decentralizes and democratizes execution of any transactions in an environment that is pre-ordained for trust to eliminate dependency on intermediaries. The core innovations of Blockchain are coincidentally a perfect enabler for energy transactions because without Blockchain the solutions are uneconomical and unsustainable whereas with Blockchain, the transactions can be economized and expedited with near real-time controls. Blockchain technology’s core innovation is its distributed ledger, “trustless” protocol and consensus-driven capabilities that can track almost any asset, rewire any transaction and reduce dependency on traditional intermediaries. Energy companies will need to plan, prepare, and harness this new technology, so it reduces stress and serves their broader mission.