Blockchain can improve the utility sector by providing more accuracy, transparency, and security with smart meters, microgrids and smart contracts.
The disruptive technology, blockchain, is widely being leveraged in the financial sector, but also other niche sectors like the utility is finding ways to benefit from it. Since a large volume of data gathers in the utility sector, industry leaders, CIOs, and CAOs have to identify a way to efficiently manage digital assets, along with mitigating fraudulent activities and enhancing overall efficiency. Blockchain is one technology that can address all of these issues, offering high-level transparency, data security, and accuracy. Besides, the sector can manage its digital asset transactions without the need for intermediaries.
It is fascinating to see how blockchain is helping the utility sector with its use cases such as a distributed ledger, elimination of go-betweens, and security advantage.
With the help of smart meters, your electric power usage is determined every hour, or at regular intervals in a day, and sent back to the utility sector. When blockchain is implemented, the usage data will be stored in a distributed ledger, which can be accessed directly by the utility company. Hence, consumers and the company can save a lot of money, cutting down the need for go-betweens.
Now, there is a new way of supplying electricity or other utilities to consumers from producers, which doesn’t require a centralized supply network. Microgrids are localized grids that work independently without the need for the centralized power station. By combining blockchain and microgrids, producers, consumers, and the prosumers can benefit in myriad ways.
Blockchain offers a decentralized ledger and allows a peer-to-peer interaction between consumers, producers, and prosumers. Hence, buying and selling power is now possible without the need for the intermediary. Besides, blockchain allows them to keep track of monetary transactions and exchanges without the need for a central authority, thereby involving negligible exposure to manipulation.
BlockCharge allows you to charge your electric vehicles without the need for visiting charging stations. With the help of a smart plug and your smartphone that has a blockchain app, you can automatically charge your vehicles without any middlemen involved. Besides, the blockchain app negotiates for you, offers the lowest price, and makes the monetary transactions by itself. Hence, blockchain allows the electric vehicle owner to save both, time and money.
As the utility sector evolves and develops in today’s digital world, more and more complex digital assets will assimilate on a daily basis. Digital data means growing challenges around security, complexity, and proprietorship. However, the sector has got the assistance of amazing technology, blockchain, to solve all of these issues, thereby driving the sector to high operational efficiency. Hence, with the right use cases (like the ones mentioned above) and blockchain-based solutions, the utility sector can build a peer-to-peer ecosystem with no intermediaries, no centralized ledger, and no commissions.
Naveen is the Founder and CEO of Allerin, a software solutions provider that delivers innovative and agile solutions that enable to automate, inspire and impress. He is a seasoned professional with more than 20 years of experience, with extensive experience in customizing open source products for cost optimizations of large scale IT deployment. He is currently working on Internet of Things solutions with Big Data Analytics. Naveen completed his programming qualifications in various Indian institutes.