Blockchain technology can be described as a digital and distributed ledger for transactions wherein the duplicate copies are maintained on the network of all the members. To be precise, all the members have access and authorization to update and review the records. The technology that is used for the data security is cryptography.
Blockchain technology is highly beneficial in the power and utility sector as it contains large networks, requires maintenance of data, faster transactions, and assurance of data security.
The major factors that are driving the blockchain in energy market are the increasing requirement for balancing the regional mismatch of the supply and demand, increasing complexity in the web transactions, and the growing concerns regarding the security of the data owing to the advancements in the IoT connected devices. The benefits that have been obtained by embracing the blockchain technology in the energy sectors are faster transactions, secured transactions, and minimum costs for transfer of value without involving the conventional intermediaries.
Owing to these benefits the demand for the blockchain in energy market has increased on a global level. The rollout of the smart meters and the emergence of the new peer-to-peer platforms have eliminated the middle man and have directly connected the green energy producers thus increasing the popularity of the blockchain in energy market.
The global blockchain in energy market is segmented into renewable cryptocurrencies and platform. Based on the renewable cryptocurrencies, the blockchain in energy market is categorized into SolarCoins, M-PAYG, Cross-border payments, KWHCoin, Coinify, and ImpactPPA. On the basis of the platform, the market is segregated into an investment platform, solar energy finance platform, energy trading platform, and peer-to-peer trading platform. Region wise, the global blockchain in energy market can be diversified in seven important regions such as Asia Pacific, North America, Western Europe, the Middle East and Africa, Eastern Europe, and Latin America.
It is anticipated that Europe is contributing a major share of the global market. The European utilities are in the process of planning to do direct trades using the blockchain technology. Berlin, capital of Germany is a hub for the start-ups that are looking out for digital business models. Majority of the energy companies in Europe are planning to apply blockchain processes in the electric mobility, renewable power origin certificates, network management and billing, decentralized energy production, and retail sales. Europe is expected to be followed by North America.
Presence of the major market players in the market is the major factor driving the growth of the market in North America. Earlier in the U.S., the blockchain-in-energy pilots did not have the involvement of utilities but in the coming years, the U.S. utilities are expected to participate in the pilots which will influence the other regions to follow the suit. Asia Pacific blockchain in energy market is also expected to witness a rapid growth in the coming years.
Some of the most important market players in the blockchain in energy market include Drift, Grid+, Electron, ImpactPPA, MyBit, SolarCoin, Veridium Labs, Conjoule, Greeneum, Grid Singularity, Energy Web Foundation, LO3 Energy, Power Ledger, Sun Exchange, and WePower, among others.
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