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Beyond the Cryptocurrency Universe: Blockchains Allow Communities to Have Sufficient Energy Source

The information provided on this website and in this article does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website's content as such. ICORating.com does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.


Beyond the Cryptocurrency Universe: Blockchains Allow Communities to Have Sufficient Energy Source

Let’s be realistic – energy sources such as wind generation and solar panels aren’t forever sufficient. Electricity companies aren’t always confident that they have enough power supply for a whole community in the future.

Today, energy systems are decentralized, which means prosumers are on the rise. Instead of large electricity firms, consumers make the effort of producing their power source. Prosumers aren’t only present in one community but other communities around the world. Households in Scotland, for example, generate and trade electricity with other households in the community.

Resilience to Future Power Shortage

Exchange isn’t only present in the crypto market but in the power sector as well. Consumers and producers exchange energy within a community. In this way, a community has enough electricity storage in case a power shortage or shock happens in the future.

Blockchain and Energy Trading

Bitcoin and other cryptocurrencies are present in the digital market because of blockchains. The technology behind the famous Bitcoin isn’t limited to the crypto universe. Blockchains also make an entrance to community energy systems.

People, especially prosumers, can use blockchain technology to track energy transactions. Hence, you wouldn’t see or communicate with a utility company to record and pay for your energy consumption.

Community energy scheme using blockchains is very promising because of “real electron trading.” With electron trading, the energy you bought comes from a generator or battery. On the other hand, a power utility company sources electricity through a renewable generator.

But, real electron trading isn’t proven to be effective yet. Power network constraints affect energy supply during peak hours. Still, power stations are needed to supply sufficient energy to the community.

Smart Contracts through Blockchain

Consumers are always finding ways to get an efficient energy source without the authority of energy firms. Blockchain has the solution – smart contracts. These contracts or agreements allow consumers to get electricity from energy firms successfully.

An algorithm enforces the terms then regulation of money and energy begins. The good thing about this is there’s no central authority involved in the exchange.

I’ll give you an example:

If you plan to buy electricity from your neighbor, your neighbor would know the amount of exported and generated energy.

How is this possible?

Once your neighbor’s smart meter links to the blockchain, it’s easy for him or her to detect the amount of electricity shared. Your neighbor would also see the record of the transaction that also includes your payment.

The usefulness of the Community Energy Scheme

Consumers and neighbors could work together in supplying power to each other through the community energy scheme. As I mentioned above, it’s easy to get and buy electricity from your neighbor using the blockchain algorithm.

In case a neighbor couldn’t supply enough power, blockchain gives you the things that could happen. For example, carbon emissions are cut during a power shortage using blockchain. Another good thing about blockchain is it keeps energy revenues that benefit the whole community.

The Blockchain Limit

Yes, blockchain technology aims to create a difference in the energy sector, but there’s a little issue we need to consider – the wastefulness of cryptocurrency.  Blockchain has high energy consumption that requires a sufficient and stable energy source. You can visit https://thecryptogenius.software to know more about this or do your own research

Imagine if the world runs out of energy source in the future? Impossible, it may seem, blockchain technology in running a community energy supply requires additional research in the future. For now, more users are entering the cryptocurrency world, hoping to mine Bitcoin and other digital currencies.

Cryptocurrency isn’t only for entrepreneurs and developers who want to become rich with Bitcoin. There is also a list of celebrities into cryptocurrencies you can read who are into cryptocurrency as well.

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