- Blockchain provides security, privacy, trust, automation
- Uses include power trading, machine commands, EV charging
How blockchain works
Source: Bloomberg New Energy Finance
Blockchain is a network of distributed nodes — humans and machines — participating in peer-to-peer transactions. Data from these transactions is broadcast to the network and hashed together to form a chain of data blocks stored across the network. The software uses public-private key encryption and digital signatures to build an immutable database with complete audit trails. As the financial industry becomes more comfortable with the use of blockchain, energy markets are also looking at how to implement the distributed ledger system. On Nov. 17, the Australian government awarded $1.95 million for a blockchain-powered distributed energy and water system, co-developed by Power Ledger.
BNEF clients can see the full research report here.