Blockchain has the potential to change the way we arrange, record and verify transactions, with the underlying model shifting away from a centralised structure (exchanges, trading platforms, energy companies) towards decentralised systems (end customers, energy consumers interacting directly). It is no surprise then that, outside of the financial sector, the energy sector is seen as one of the industries where blockchain could have the biggest transformative and disruptive impact.
What is blockchain and why is it Important?
Blockchain technology is the technology behind the popular digital currency known as Bitcoin. It is a safe transaction ledger which is shared by everyone taking part in an established, distributed network of computers. Blockchain keeps a record of all transactions which take place in a network, and these records are decentralized and impossible for cybercriminals to steal. Thus, with blockchain, there is no need for “trusted” third parties because it is already secure and incorruptible. For the data within the blockchain to be accessed, the data must be validated by 51 percent of every computer within that specific network. It is this transparency and incorruptibility of blockchain, along with its technological and commercial value that is making it gain prominence in other areas. It has opened new possibilities in areas such as finance, the public sector, and several other aspects.