How the blockchain feeds the digital transformation of energy

The rise of data driven businesses and changes in consumer habits are changing the way businesses perform in energy markets.

Emerging technologies are driving digital transformation and causing large-scale industry disruptions, bringing great benefits to the energy sector. Boasting reliability and transparency, blockchain is one of these technologies.

This potentially revolutionary innovation can help companies manage the growing complexity of the industry while eliminating inefficiencies. [Native Advertisement]

There are three main ways in which digital technologies like blockchain can improve business. The first is the development of new business models, which is perhaps the strongest added value. The second is interrupting existing processes. Obsolete business practices can stop growth, while their reimagination and redefinition can have a transforming effect. The third main force of the blockchain is disintermediation. Technology can help disintermediate existing value chains and offer ways to redefine them. This can give companies direct access to information that would otherwise require a mediator.

Development of new business models

In terms of new business models and innovative digital platforms enabled by blockchain, we have already witnessed the convergence of different sectors within the market. For example, oil companies have become actively interested in having capacity for energy production and for the provision of marketing services to the B2B and B2C channels. In this way, they are trying to play a role through the end-to-end supply chain of hydrocarbons. It is advantageous for both them and their customers to provide services that improve the business. Blockchain can become one of the key mechanisms for B2C channels to manage the authentication, management, syndication and sharing of data sets securely and reliably between the various parts of the ecosystem .

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Another example is the peer-to-peer business of energies, in which the consumer is a person who consumes and produces. This means that they can be incentivized to generate renewable electricity and exchange any surplus that could result. If given the opportunity to create energy that offers individual value from which they can benefit, today's consumer will be willing to pay the premium price to join the service. However, they may not have the intuition to do it efficiently. A scalable business model could develop around people who want to offer and negotiate within a market. MORE BLOCK OF MORE DEPTH: Blockchain explainxcwcysfrcdyzsxfrvdssbcubedfusdzvba

A classic An example of this disintermediation is in the exchange cycles in which there is a lot of manual manipulation between several parts. Blockchain can completely stop the whole process, creating a digital mechanism for companies that perform post-trade transactions, commercial processing and even to manage commercial financing.

There are currently a number of industry initiatives that are trying to achieve this goal. The same applies to small energy companies where the challenge is to create a digital rather than a physical market in which people interact using more traditional methods that result in a significant degree of inefficiency. Blockchain can have a huge positive impact on traditional supply chains that are currently dependent on outdated and inefficient processes.

Turning on the blockchain revolution

Many companies are experimenting with various new technologies, trying to determine which ones are best suited to their businesses, including the blockchain. We can observe various types of scalable production distributions in the industry, most of which are in the most physical supply chain, focusing primarily on container companies and, in some cases, on remittances. These early use cases provide a first indication of the vast potential of the blockchain, which is now becoming a reference point for a larger number of organizations considering how they can strategically use new technologies to accelerate their activities.

Therefore, stakeholders are now coming together to create common definitions, data standards and solutions supported by blockchain and participate in industry consortia by putting in equity and investments. Source link