How Blockchain is Making Waves in the Energy Sector 6 346

It may be in its infancy, but blockchain technology is already threatening to disrupt every industry there is. One area where its capabilities are being felt right now is the energy sector. Since the start of this year alone, ICOs have been springing up to tackle world problems almost daily. Moreover, over 200 business models have been identified that could benefit from blockchain technology in this segment.

With the sheer number of pressing issues that face our society today, in the form of climate change, water scarcity, crop failure, and world poverty; the blockchain can be put to some very good use indeed. Let’s take a look at how this technology is having an impact on the energy sector:

Peer to Peer Energy Trading

Many people are alarmed by the thought of climate change. But rising sea levels and poor air quality won’t necessarily motivate them into action. A far better incentive is by showing them the impact on their wallets. How do you get people to install solar panels on their roofs, for example? By paying them back in energy credits and cheaper electricity bills.

And now they have another incentive as well. They can be rewarded for the energy that they don’t consume by trading it directly with their peers on the blockchain. Energy generation is fast becoming decentralized, allowing small and individual producers with rooftop solar units to access the energy market and sell their surplus.

ICOs like Electron in the UK aim to capitalize on the opportunities that this decentralization brings, by allowing consumers to manage their own energy and cut out the middlemen. They can trade their energy credits on a secure and robust platform, when and how much they want to.

Carbon Credits

To tackle the climate crisis head on, many startups are using the blockchain as a fast, efficient, and transparent way for businesses to trade carbon credits. If the thought of saving the planet wasn’t reward enough, many ICOs provide added rewards programs for businesses and individuals who make conscious decisions to reduce their carbon footprints.

CarbonX is one such ICO that allows enterprise companies to easily provide their customers with the sustainable business practices they seek. Using the blockchain to recast carbon offsets, all transactions are transparent and immutable. This means that consumers can really see that when a company claims to be environmentally friendly, it is.

The CarbonX platform assesses the carbon impact of a company’s products and services and balances it with offsets. It then certifies carbon neutral products so that consumers can be confident in their sustainable purchasing choices.

Financing Renewable Energy

Like Kickstarter for renewable energy projects, many a blockchain startup is appearing on the scene allowing great ideas to get the funding they need to start. ASTRN Energy, for example, uses the blockchain to crowdfund and gives investors a stake in the future profits of the energy plant or program.

By enabling crowdfunding and co-investing in renewable energy projects, such as wind generators, solar farms, hydro-dams, and other types of clean energy sources, companies like ASTRN allow us to collaborate to work towards a cleaner, greener future.

With blockchain frequently labeled as the most disruptive tech in decades, perhaps this is the weapon we can finally use in the fight against climate change and finite energy sources. If blockchain can hold companies and suppliers accountable, incentivize individuals and enterprise alike to reduce their carbon footprints, and turn energy into a tradable commodity, perhaps there is hope for generations to come after all.

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Christina is a technology and business communicator who has worked with high profile ICOs and blockchain influencers to break industry news.

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Bitcoin Uses As Much Energy As Austria, Could Add 2°C to Earth’s Atmosphere 2,169 8636

Bitcoin mining, it turns out, damages the earth more than more traditional environmental assaults like actual mineral mining.

According to a paper published Monday in Nature Sustainability, the power-hungry Bitcoin mining process consumes more than triple the amount of energy needed to mine the equivalent amount of gold, more than quadruple what’s needed for copper, and more than double what it takes to mine platinum.

Other coins didn’t fare much better. By their measurements, Ethereum and Litecoin consume 7 megajoules of electricity to produce the equivalent of $1, the same energy expenditure as copper mining but more than that of platinum or gold. Monero eats up 14 megajoules to produce $1.

Naturally, these measurements refer to the notoriously variable dollar valuations of such tokens. “While the market prices of the coins are quite volatile,” write researchers Max J. Krause and Thabet Tolaymat, “the network hashrates for three of the four cryptocurrencies have trended consistently upward, suggesting that energy requirements will continue to increase.”

Bitcoin’s Growing Electricity Bill is Bigger Than Some Countries

We’ve long known that Bitcoin is unsustainable. In a 2015 article for Motherboard, Christopher Malmo pointed out that a single Bitcoin transaction used 5,033 times as much energy as a Visa swipe, and could power 1.5 American homes for a day.

The electricity used to crunch Bitcoin code—and its environmental cost—has been growing with its increasing popularity. Digiconomist’s Bitcoin Energy Consumption Index shows Bitcoin currently consuming 73.12 terawatt hours (or 263.232 billion megajoules) of electricity annually. To put that in context, it’s comparable to the amount of energy it takes to power Austria for a year.

That means there are 175ish countries on earth using less energy than Bitcoin (to say nothing of crypto on the whole), while 66 countries consume less energy per capita than one Bitcoin transaction (it takes 94 thousand kilowatt hours of electricity to mine a single Bitcoin).

Iceland, a major hub of Bitcoin mining farms, spends nearly as much energy on Bitcoin as it does powering its residential homes. In this case, the damage is mitigated because most of Iceland’s power comes from renewable energy.

Canada’s Bitcoin emissions are also on the lower end due to renewable energy sources. They’re using this to court mining companies from China, where mining emissions are about four times that of Canada’s. Montreal International attracts foreign investment by calling Quebec the land of “green bitcoin”. This has caught the eye of some Chinese mining companies looking to go overseas as the Chinese government has discouraged expansion and shut down some mining operations altogether.

Depending on Bitcoin’s growth, some have projected that it could use as much energy as the entire world by 2020.

Digital Currency Has a Real Carbon Footprint

Krause’s and Tolaymat’s research reminds us of the sobering reality that all this invisible wealth has real world costs.

For the 30 months they measured between January 2016 and June 2018, they estimate their four featured tokens collectively belched out at least 3 million tons of CO2 emissions, possibly as much as 15 million tons.

These findings follow another study, published last month, which determined Bitcoin alone could add two degrees Celcius to global warming within the next three decades. That’s enough to raise ocean acidity by 29 percent.

Solving Bitcoin’s Energy Consumption Crisis

So what is the solution? If the world were to switch to 100 percent renewable energy overnight, the problem would be moot. But we can’t hold our breath for that. There could be ways of incentivizing clean energy so greener mines reap more coins, or of implementing clean energy in other ways.

It’s also possible to adopt less computationally intensive mining algorithms so the mining computers don’t guzzle as much juice. This would disappoint a lot of old school Bitcoiners who have invested in hardware, but their feelings don’t really outweigh that 2 degrees celcius that everyone will have to live with (or die by).

Whatever the best solution turns out to be, something needs to change soon. Bitcoin is growing up, and it’s time for it to mature into something more sustainable.

Kenya Looks to Blockchain for Affordable Housing Project 9 6711

The “Silicon Savannah” is moving deeper in direction of tech. The Kenyan government has announced a plan to manage the property allocation and funding of 500,000 affordable housing units with blockchain technology.

The units, which the government aims to build by 2022, will be set aside for households with an annual income below 100,000 Kenyan Shillings, about $990 USD. The World Bank estimates Kenya’s gross national income per capita at $1,290, according to Business Daily.

Blockchain will help ensure that the affordable housing is in fact going to those who fall below the average income bracket. Land title fraud has caused problems for Kenyans, as land grabbers target homes and even schools for illegal sales and development. Blockchain’s ability to store verifiable proof of title could help safeguard against fraudsters.

“Kenya will use blockchain technology to ensure the rightful owners live in government funded housing projects,” said Principal Secretary of Housing and Urban Development Charles Hinga, speaking with the World Bank on Monday.

Hinga said the plan will be financed by the National Housing Fund, which will raise over $59.5 million per month to get the project underway. But Cabinet Secretary for Transport, Infrastructure, Housing and Urban Development James Macharia said it will take $31.7 billion to build a million homes, each of which will cost between $3,000 and $30,000. Macharia called for support from private sector financing.

Under the financing plan, working Kenyans will contribute 1.5 percent of their salary, which will be matched by their employers. “On affordable housing one should not spend more than 30% of their disposable income for housing,” Hinga tweeted yesterday. “Anything above 30% is not affordable.”

A Trustless Relationship Between People and Government

The initiative represents a considerable push to solve housing and title problems for the nation’s lower income families. But how will the government decide to whom the housing units will go? With so much talk about financing underway, people are already calling on the government to outline a plan for how they’ll distribute the affordable housing units.

The government will need to deliver the housing projects in a time when, Hinga acknowledges, the public is skeptical. Earlier this year $78 million went missing in a corruption scandal involving the National Youth Services. Where there is little trust between the people and their government, Kenya hopes to establish transparency through the blockchain’s distributed ledger system.

Kenya’s Move Toward Tech

In March, Kenya’s Ministry of Information, Communications and Technology appointed a blockchain taskforce to explore the ways the nation could use blockchain technology in the public and private sectors. They called it the Distributed Ledgers and Artificial Intelligence taskforce, and by September its chairman, Bitange Ndemo, was calling on the government to tokenize the economy.

Ndemo also proposed government implementation of blockchain to certify the authenticity of retail goods, so consumers can be sure of where their food is coming from, for example.

Governor of Kenya’s central bank Patrick Njoroge has also voiced support for the use of blockchain technology to strengthen service delivery, although he’s opposed the use of tokens and digital currencies.

But the affordable housing initiative could be the Kenyan government’s first real world implementation of the blockchain.

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