Why blockchain may be fine for energy trading after all. Energy-blockchain advocates say the technology is ready for energy trading, and getting better every day.
Blockchain advocates are hitting back at accusations that the technology is too costly, slow and unwieldy for energy trading platforms. Speaking at an industry event in June, Stephen Woodhouse, chief digital officer for Pöyry in the U.K., worried thatblockchain could never handle the volume of trading in energy markets. “I’m not convinced,” he said.
These concerns may hold true for the blockchain underpinning popular cryptocurrencies such as bitcoin, but they are increasing irrelevant as the technology develops, according to Jesse Morris, secretary at blockchain platform developer Energy Web Foundation (EWF). Blockchain shortcomings cited in a GTM article last month were “a bit dated,” said Morris. “Existing efforts and research have largely overcome some of those challenges.
I wouldn’t bring up those as the problem points.” Blockchain issues with transaction speed, cost and scalability have been solved already or will be soon, he said. Theoretically this includes the most damning challenge blockchain has faced so far — that its proof-of-work security protocol can require tremendous amounts of energy.
With bitcoin, this energy consumption is currently estimated to top 73 terawatt-hours a year, more than Austria uses in a year. That’s a problem, Morris admits. Read more from greentechmedia.com…
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