Despite the hype, the technology suffers from serious flaws. A skeptical take on blockchain for energy trading.
Judging from the exploding number of startups out there, one might think blockchain is going to revolutionize energy trading. But the technology could be a poor fit for the applications that many companies are hoping to use it for, according to one expert.
Blockchain is being touted as a way to cost-efficiently manage thousands or millions of transactions across hundreds of applications, ranging from billing and metering to peer-to-peer energy trading. But in fact, blockchain is neither particularly cost-effective nor easy to scale to support massive transaction levels, said Stephen Woodhouse, chief digital officer for Pöyry in the U.K.
“I’m a blockchain skeptic,” he admitted at Electrify Europe, an industry event held in Vienna, Austria in June. “I am waiting to see the right use case.” Blockchain is no more than a system for recording information securely in a distributed way, he noted.
“It’s nothing revolutionary. It will just become an embedded part of some of the transactions we do.” Blockchain’s strength is its distributed nature, which means no central authority must be paid to manage the data. Read more from greentechmedia.com…
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