The association between blockchains and energy is usually a negative one. “The Bitcoin blockchain is so wasteful of electricity,” or so the argument goes, “that it would push global warming to dangerous levels if it were ever used on a massive scale.” Research published in the influential journal Nature backs up this warning. Yet, if we were to look beyond Bitcoin, it becomes apparent that blockchains in general are being increasingly put to good use by the energy industry.
From their use in energy trades to their incorporation in microgrids, distributed ledgers are making possible a range of new transactions and systems. By enabling micro-suppliers to receive quick and easy payments for contributing electricity to a network, they're increasing the decentralization of the energy industry, with consumers likely to see their bills become cheaper as a consequence of their entry.