The future of blockchain technology according to French energy experts ( Part 2)

by Salman Khan

Blockchain technology is attractive because of its ability to decentralize energy businesses and increase resilience. Blockchain ensures real-time synchronization between the power supply and demand data, which can increase energy efficiency on demand. The blockchain solution can also be used to track and monitor energy efficiency in real-time, which will eventually improve supply efficiency. Blockchain provides companies with efficient ways to monitor energy consumption and production and identify system malfunctions, which adjust response times in the event of a crisis or slowdown. In France, the ENGIE is learning to use blockchain technology to control the flow of water and energy. The company has partnered with various blockchains such as LEDGER to develop blockchains for energy market solutions, security, and infrastructure solutions for cryptocurrencies and blockchain applications. 

Misunderstanding of the regulatory and legal structure

Blockchain is evolving and updating much faster than current rules. Current legal definitions and disciplinary frameworks are needed to clear the current level of uncertainty about blockchain. The French government is working with blockchain ecosystem players to develop appropriate rules and legal structures for technology. In the year of 2018, the French Accounting Standards Authority built a rule for issuers, ICO investors, and any initial currency proposal (ICO is the most popular approach to fundraising). Accounting rules for corrupt institutions have been clarified. Currency or crypto enabled. However, several questions need to be addressed, such as intellectual property, the confidentiality of information, and enforcement of agreements.

Electricity utilization

The current blocking design works with an algorithm that can utilize 215 kWh per operation. Electricity is needed. For example, servers running bitcoin software are expected to use at least 22 TWh per year, which is Ireland’s annual electricity consumption. Expansion of the blockchain will demand further “data mining” and therefore additional energy consumption. Several green mineral solutions are currently being tested using renewable energy sources and highly efficient energy equipment. An example of this is the green energy company Hydrominer, which develops two hydroelectric power plants in the Alps of Austria.

Technological complexity

Existing blockchain designs are difficult to develop, implement, and support. Blockchain operation can be difficult for a new user because it requires technical expertise and several complex steps. Most IT players are currently allowing cloud-based blockchain services aimed at automating the installation of blocking infrastructure. In the future, blocked programs may require to be extensively adapted to plug-and-play support that is more friendly.