October 18, 2018. The blockchain technology that was first introduced to power the very first cryptocurrency, bitcoin, continuous to disrupt traditional industries. From changing the landscape of finance, supply, and logistics, retail and e-commerce, etc, it may now disrupt the energy sector according to IHS Markit, an information provider based in London.
Revenue of the business sector because of blockchain is expected to increase from $2.5 billion in 2017 to $2 trillion in 2030. This increase is mainly because more industries and countries, such as the Philippines, are now tapping the technology.
One of the biggest companies that use and offer blockchain solution is IBM . The tech titan defines blockchain as a “shared ledger where data cannot be modified”. This will greatly reduce the risk of fraud and will also cut the costs of recording transactions and tracking assets.
IHS Markit reported in 2017 that the energy & power sector has around $20 million business value on the blockchain. This will significantly increase to $158 billion by 2030.
The reason for this massive increase is because of its current costly and inefficient energy system that will get solved by the blockchain.
“Key problems with [the energy] market today are that it’s a centralized model. It locks in models of energy waste; there can be a lack of consumer choice, which can vary by country. Electricity networks are in need of expensive upgrades, and financial models are locked in,” – IHS Markit
It was previously reported in BitPinas that a renewable energy company in the Philippines, First Gen, will use the blockchain to distribute the energy across its suppliers, producers, retailers, and consumers. First Gen signed a partnership with Energo Labs, a Shanghai-based startup.
A Singapore-based company, Electrify, also wants to solve the high costs of energy and power by using the blockchain. It is Singapore’s first retail electricity marketplace where it decentralizes power production and gives the people a choice as to where to purchase their electricity.
With a growing number of fintech and blockchain companies in the Philippines, the Bangko Sentral ng Pilipinas recently created a new unit to oversee the industry.