1. Blockchain and Energy Understanding Opportunities and Challenges
- Author:
- Nicola De Blasio and Charles Hua
- Publication Date:
- 02-2024
- Content Type:
- Special Report
- Institution:
- Italian Institute for International Political Studies (ISPI)
- Abstract:
- The transition to a decarbonized, decentralized, and digitized energy future will unlock new business, policy, and technology models with the associated opportunities and challenges. Innovative technologies like blockchain, a shared, decentralized, and immutable digital ledger system that processes, validates, and manages digital transactions based on algorithmic consensus protocols, may enable this transition. Potential blockchain applications in energy range from enhanced distributed energy resources and peer-to-peer energy trading regimes to more robust grid management and smart energy contracts. There has been significant hype around blockchain’s potential impact in shaping economic and energy systems. Yet, it is essential to separate signal from noise and assess blockchain’s potential impact. This paper aims to provide a comprehensive analysis by identifying key use cases and then addressing which key characteristics blockchain technologies need to bring to fruition to support them. It also proposes an analytical framework to evaluate the potential impact of eight applications based on four key criteria: feasibility, maturity, scalability, and value additivity.
- Topic:
- Science and Technology, Innovation, Blockchain, Decarbonization, Energy, and Geoeconomics
- Political Geography:
- Global Focus