Blockchain Energy Grid
We are facing an inefficiency in power transmission and management with huge loss of energy in terms of heat either at the centralised power generation plant and in transportation of energy along long distances
The underlying hierarchical establishment of power distribution is to be blamed and need to be revamped into a decentralised peer-to-peer structure. This can be achieved by utilising blockchain technology which helps in developing autonomous energy supply-demand matching algorithm on the network.
Players on the platform
Blockchain powered energy grid would comprise two major types of nodes either contributing or consuming electricity from the network.
Decentralised and distributed accounting of energy demand and supply would result in a more resilient and robust smart energy grid running atop of smart contracts connecting nearest power generating neighbours at a much cheaper and dynamic prices rather than paying retail market denominations.
High level System Architecture
There will be a separate blockchain implementation with access controlled via smart meters at the time of manufacturing. Smart meters are allowed to participate in the smart contracts pre-designed on the blockchain to identify and connect with the nearest peer either in need or have excess of electricity.
Relying on autonomously operated smart contracts with near zero human intervention would minimize the fraud and inefficiency in power transmission.