“We are witnessing a paradigm shift from a centralized internet world to a decentralized world, characterized by intermediaries and democratization. There’s a lot of overlap with how the energy industry is transitioning to become more decentralized and distributed in nature,” said Sabine Brink, Shell’s blockchain and Web3 lead.
There are many opportunities for applications of Web3 and blockchain technology to support the emergency energy transition. For example, Shell and several other global companies have launched Avelia, a claims solution to help scale up the supply of sustainable aviation fuels. Tech companies like Toucan, Moss.Earth and JustCarbon are tokenizing carbon credits, providing customers with a simpler way to offset their carbon footprint. Peer-to-peer energy trading is becoming a reality thanks to ventures like Powerledger, Grid+ and LO3 Energy.
Paul Brody, EY’s global blockchain leader, highlights the transformative character of this infrastructure technology: “In a blockchain-based ecosystem, you can have a very fluid, digital interaction. loose, where you can choose from dozens of different providers and you can rate them all on a digital basis. “
Decarbonization requires decentralization
Tackling climate change has one requirement above all else: decarbonizing energy systems. This requires further electrification of economies and decentralization of the energy system.
Given the nature of renewables, especially solar and wind power, the electricity generated is not always available (no need for storage) and is often geographically removed from where it is located. need electricity. Furthermore, with the advent of consumers – consumers who also generate energy that can be fed back into the grid – existing energy systems are in need of a sweeping overhaul.
“We have a lot more players entering the energy market, as well as different combinations of low carbon energy products. This requires the global coordination of energy systems on a large scale to ensure that we reach net zero on a large scale. Above all, transparency, auditability and accountability will be key. ‘ Brink explained. “Blockchain as a decentralized network technology makes a lot of sense to underpin this.”
These changes in the energy system will exponentially increase the number of transactions, including microtransactions, that will take place on a daily basis between many players and energy assets. They must be recorded and managed in ways that ensure the transparency, reliability, and verifiability of the data. It is important that trading systems and regulations evolve to meet this need.
The role of blockchain technology
Blockchain technology, a digital and decentralized ledger that holds multiple copies of transactions, makes data tampering almost impossible. Although developed for cryptocurrencies, which are still closely associated with digital currencies, blockchain still has many uses. Its primary benefit — integrity — creates a valuable asset to the market: trust.
