There has been a major transformation in the production and distribution of electricity across the globe. All the traditional power generating stations have now been replaced with the new budget-friendly power which is produced by solar, wind, or natural gas-burning plants.
In order to adapt to these small changes, the researchers have developed a new smart grid that would help the small traders to find a perfect marketplace to sell or purchase electricity. But to bring this system in the mainstream, a new system based on Blockchain needs to be developed. This is a digital technology associated with cryptocurrencies such as Bitcoin which will connect different electricity generators, buyers, and sellers.
Block Chain in the Power Market
Blockchain is a digital ledger to record transactions which enable fast, secure, and transparent trading. It functions on a widely distributed network of computers and is visible to all users. Unlike Bitcoin which needs different coins to solve a computationally complex problem, energy market needs a customized blockchain, designed specifically for this sector. Some of the reasons why blockchain can transform the power industry include:
Tracking Small Transactions: Apart from verifying the certificate of origin, Blockchain also wires a chain of networks used for purchasing, selling, or trading power among different customers. The basic concept behind creating such a blockchain is to enable the dispersed energy resources to stay connected, assist in making prompt decisions for optimizing the energy mix.
Enabling new Technologies: Blockchain also helps in introducing new technology and accepting new electric vehicles. It helps in swift handling the transactions at charging stations because of its capability to deal with large volumes of small transactions.
Decentralized Authority: Since most of the present blockchain frameworks do not allow direct one-on-one customer trading, therefore a new framework is needed to be developed. The concept will specify when the electricity is first directed to the regional electric grid. In order to set up this new framework, a heavily regulated and more flexible electricity tariff needs to be created and established using blockchain.
Tobalaba System
The Tobalaba system uses blockchain to record the origin and ownership of renewable sources of energy. It also manages electricity production, including details of source type, location, time, and emissions. Since the existing system to perform such functions is complicated and the certification confirmation is a time-consuming process, it might take weeks to get confirmed. Hence a new blockchain-based system is proposed which will speedup up the process and will provide transparent and accurate tracking and trading.