Blockchain technology to empower the energy economy still needs to climb the hill

Original title: "Blockchain technology empowers the energy economy and needs to climb the hill"

The era of the digital economy of mass production, sharing and application of digital technologies has begun. With the increasing diversification of energy trading entities and models, the volume and dimension of energy data are increasing, and the demand for data sharing, sharing and credibility of all parties involved in the transaction is increasing. The trusted management of the whole process of data collection, storage, analysis, trading and verification of the energy industry and upstream and downstream enterprises urgently needs to be implemented, and the data barriers between enterprises, trading institutions, verification institutions and users urgently need to be broken. In this context, due to the characteristics of distributed storage, traceability, anti-tampering, sharing, sharing, etc., it can provide solutions for the current difficulties of energy digital business, and blockchain technology has become one of the breakthroughs in the combination of traditional energy business and digital technology.

01

Blockchain technology

Deeply change the development model of energy economy

The combination of blockchain and energy digital technology is an important driving force for the development of energy digital economy. In terms of energy digital technology, blockchain technology shows unique economies of scale and network economy characteristics, and when it breaks through a certain critical point, it may grow rapidly. Energy digital technology is mainly composed of big data, cloud computing, Internet of Things, artificial intelligence and edge computing technologies, which together lay the technical cornerstone of the energy digital economy. Blockchain technology brings solutions to data ownership, authenticity and security issues, thereby facilitating the full application of the overall data process.

The combination of blockchain and energy trading markets helps build an efficient, fair and transparent future energy market model. In the energy trading market, the application of blockchain technology marks the transformation of a centralized market to a distributed trading market. In this model, all parties have the opportunity to become producers or consumers, and the smart contracts provided by the blockchain can ensure the automation of the entire process of energy production, trading and consumption, so as to achieve efficient, fair and transparent transactions. Using smart contracts, the entire transaction process can be automatically executed, greatly improving transaction efficiency.

The combination of blockchain and energy management and services is the driving force for the transparency and personalization of energy data. In energy management and services, blockchain technology can realize the transparency of energy data and improve the efficiency and fairness of energy management. Blockchain technology can make the tracking, monitoring and regulation process of energy data, such as carbon emission data, public, thereby greatly enhancing the availability of information and transparency of energy management. Thanks to the immutability of blockchain data, data fairness can also be guaranteed. In addition, blockchain technology can promote the personalization of energy services, ensuring more accurate services. Using technologies such as smart contracts, energy service providers can provide more accurate services based on the actual needs of consumers.

In the era of energy digital economy, the boundary between producers, owners and consumers is gradually fading. Blockchain technology has become the core driving force of this change, and its application has profoundly affected traditional production relations, and the existing "producer-consumer" model is no longer suitable for the current economic environment. Blockchain technology introduces innovative models between energy producers, owners and consumers, especially in distributed energy transactions, making the definition of roles between them more complex. At the same time, with the advancement of Internet and Internet of Things technology, energy subjects can participate more deeply in the social division of labor. Under the influence of price signals, the roles of energy producers and consumers are interchanged, opening up new space for the energy market. Blockchain technology shares value in real time in a new network platform, further revolutionizing the traditional energy trading model. In this context, the transformation of production relations promoted by blockchain technology provides opportunities for the establishment of a new energy economic model, and puts forward new requirements for grasping the future trend of the energy industry.

Blockchain technology is profoundly changing the operating model and structure of the energy industry. Especially in the establishment of a new type of production relationship based on trust, it provides new ideas for the modernization of the energy industry and the optimal allocation of resources.

Blockchain technology has shaped a new trust framework that facilitates interaction and collaboration among all actors in the energy industry. The immutability, traceability and high transparency of the blockchain provide a strong guarantee for the innovative trust mechanism. As a result of this trust mechanism, the cost of trust is significantly reduced in energy production, transmission and consumption. This change in the trust mechanism provides solid support to ensure fair transactions and protect the rights and interests of all parties, thereby changing the trust structure of all participants in the energy industry, making transactions more transparent and processes clearer.

While ensuring equal participation of all parties, blockchain technology can greatly promote multi-centralized production cooperation in the energy industry. Its multi-node collaboration capability is based on equality and fairness between nodes. Compared with the leasing and employment relationship in the traditional agricultural and industrial economy, the cooperation model driven by blockchain technology can provide a more equal and trustworthy cooperation environment for energy enterprises and consumers to participate in production activities driven by interests.

Compared with the traditional production mode, multi-centralized energy production cooperation can not only expand the scale of cooperation under the guidance of blockchain technology, but also significantly reduce the cost of collaboration. Blockchain technology solves the problem of information asymmetry, eliminates various obstacles, improves collaboration efficiency, and then reduces production costs to a certain extent. In addition, the decentralized nature also ensures fair and equitable production interaction and improves production efficiency.

The rise of blockchain technology has had a profound and unique impact on the energy industry in general, especially in the energy production and distribution process. The technology gives energy producers unprecedented rights to publish energy products such as oil, gas, electricity, etc. directly to the network or to specific trading pools, freeing the product distribution process from centralized companies or platforms and putting more decision-making power back into the hands of producers. This decentralized product release method can not only give energy producers greater autonomy and flexibility, thereby significantly improving the efficiency of energy production and distribution, but also build a "product channel" between energy product producers and consumers, and provide new ideas for solving new energy consumption problems such as "abandoning light and wind".

In the blockchain network, the automatic execution capability of trading contracts further enables the automatic distribution of energy products. Smart contracts automate the execution process of contracts, making them more transparent, accurate and efficient, reducing errors and delays caused by human factors, simplifying transactions and reducing transaction risks. In traditional transactions, the involvement of human factors can lead to transaction delays, errors and even fraud. However, the use of smart contracts makes the transaction process more fair, open and transparent, improves transaction efficiency, and helps to build and maintain trust between participants. For example, in distributed generation scenarios, the use of smart contracts can provide automated, transparent and secure ways for transactions and operations in areas such as electricity supply, electricity demand forecasting, and emergency power purchases, so that both individual energy producers and consumers can benefit from a decentralized environment.

02

Energy blockchain technology

There are also multiple challenges to being fully effective

However, with the rapid growth of energy data and the continuous increase in the number of blockchain users, the geometric growth in the number of blockchain nodes brings huge storage pressure, because every transaction or information change needs to be replicated and verified by all nodes in the network. This demand also leads to a linear increase in storage time and energy consumption, putting pressure on business operations. How to solve the storage space problem has become an urgent problem to be solved.

In the process of application and promotion of blockchain technology, there is a risk of user privacy leakage and corresponding data security and privacy protection issues. In a blockchain network, all data is stored on a public, distributed ledger, which means that all users on the chain have access to it. This design carries significant risks, especially when it comes to personal private information. Since data cannot be modified and deleted, once a breach occurs, it cannot be recovered and remedied. Therefore, this issue must be deeply evaluated and effectively solved before blockchain technology is applied on a large scale.

First of all, it is necessary to pay attention to the prominent role of business model analysis of energy blockchain projects in promoting the development of energy economy. At present, the profit potential of energy blockchain projects is insufficient, and the business model needs to be further improved. In the early stage of design, any energy blockchain project should focus on the needs of different customer groups, the design of products and services, and the construction of profit models, and continue to pay attention to and optimize the business model to ensure that it can be closely integrated with market demand, so as to improve the sustainable development of the project and inject new vitality into the energy economy.

Secondly, the integration of blockchain technology with other digital technologies needs to be vigorously promoted in the field of energy economy. The development of blockchain technology is not isolated, and needs to be deeply integrated with technologies such as big data, cloud computing, edge computing, and artificial intelligence to form cross-field technical interaction. For example, the combination of blockchain and cloud computing technology can realize the automatic execution of smart contracts on the cloud computing platform, thereby optimizing the distribution rules of energy products and making the role of blockchain technology in the development of the energy economy more significant.

Finally, in-depth understanding and follow-up of domestic and foreign policies and regulations related to energy blockchain is the key link to promote the application of blockchain technology in the energy field. Energy enterprises should take the initiative to contact, conduct in-depth research and fully understand the relevant policies and regulations of energy blockchain at home and abroad, fully understand the development trend and trend of blockchain, ensure the compliance of enterprise blockchain projects, and enhance the competitiveness of enterprises. This will not only help the development of the enterprise itself, but also have a positive impact on the development of the mainland's energy economy.

(Wang Tao is Executive Director of the International Research Center for Global Governance of Northwestern Polytechnical University, Bai Dan is an Associate Professor of Xi'an Jiaotong University City College)

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Source: People's Network

Original title of the article: "Blockchain technology empowers the energy economy still needs to climb the hill"

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