Blockchain technology changes how companies interact with their partners, suppliers, and customers. For example, you can check the bitcoin platform if you want a dedicated account manager for your bitcoin trading venture. The platform has features like high compatibility with all devices, a massive range of trading tools, and many more. It will increase procurement efficiency and customer interactions and streamline the way agreements are reached.
Companies are pushing for new, more efficient ways to do business with their suppliers and partners at an ever-increasing rate. This technology tracked ownership of a physical product through the value chain from its origin to the end consumer.
Blockchain could improve the way grid-connected devices interact with one another. Distributed ledger technology (DLT), a form of blockchain technology, could improve the electric grid’s efficiency by reducing inefficiencies and costs associated with current technologies.
For example, DLT could help utilities aggregate distributed smart meter data more efficiently into one central database that energy companies can access at all times. It would eliminate the need for multiple data collection points and remove those costly processes from existing grids.
To achieve this goal, however, utilities must consider using blockchain technology in the grid. For example, some smart meters send usage and data to a central point where utilities collect and store that information.
This centralized storage poses a potential security risk and could be an inefficient way of handling distributed systems. DLT could allow for more efficient data handling, and other benefits utilities can utilize in the grid.
Traditional Models vs Smart Grids:
The physical components of a traditional model are made up of various technologies that all work together to transmit energy from one point to another. The inefficiencies of this system stem mainly from the multiple nodes through which energy must pass before it reaches a final destination.
These include gas or coal-fired power plants, transmission substations, high-voltage lines and distribution substations. Each node represents another opportunity for something to go wrong or be manipulated. It also requires additional time and money to make necessary upgrades, maintain equipment and conduct maintenance checks.
The intelligent grid model is set up with a controlled system that delivers power from a central power plant, through a series of high-voltage lines, to the end customer. Distributed components only send energy if the device requires it.
However, this greater efficiency comes at a cost; up to 40% less capacity and about 60% less voltage are available for transmitting energy throughout the network. The technology also requires 25% less transmission infrastructure because of its distributed nature.
Blockchain vs Traditional Grids:
Innovative grid technologies have used old systems like IP conversions and interconnection agreements to transfer data between utility companies and the devices within their networks.
The resulting information is then used to determine how much electricity is being used and where which allows power companies to adjust their supply to meet demand. Blockchain could be the answer for innovative grid applications that require more efficiency. The blockchain provides a cost-effective way of tracking ownership, back up data and continually updating that information.
In addition to the execution speed, additional benefits come with creating a blockchain network when developing intelligent grids. The most impressive range from cybersecurity and overall system security to lessening regulatory compliance burdens on utility companies.
Pricing of Smart Grids:
The cost of implementing and maintaining these innovative grid systems is a significant issue due to the coming complexity. It is mainly because of the enormous investment it will take.
It could create an environment where companies are facing decision-making pressure along the way towards implementing these changes. Some regulations require utilities to upgrade their systems to accommodate more renewables and other technologies.
These factors will cause many companies to invest heavily in their existing infrastructure before they begin investing in new technologies like blockchain smart grids, even if they expect to benefit from it in the long run.
Source of energy for blockchain-powered Energy Grids:
Utility companies could use blockchain to store and manage energy sources on their networks and associated metadata about how electricity is used on those networks.
The stored metadata would allow companies to set up smart contracts that meet their legal and operational needs without legislative support or government oversight.
More portion of Renewable Energy like Solar and Wind Power:
The largest source of carbon-free energy in the US is wind-generated electricity. However, only about 6 per cent of the total energy produced in the US comes from renewable sources.
Adding blockchain technology to energy grids could make a difference in how much renewable energy gets used globally. With this system, the cost to interact with and connect to the network would be significantly lower than that of traditional networks through a process called “load balancing.”
This cost reduction would allow many more companies and homes to become involved with these new projects. By creating more demand, blockchain could accelerate the growth of renewable energy sources on national electric grids within the next decade.