Blockchain is a methodical system of recording information in a manner that eliminates the possibility of alteration, modification or deceiving the system, through the use of decentralization and cryptographic hashing. In 1991, Stuart Haber and W. Scott Stornetta were the first to describe it.
It is fundamentally referred to as Distributed Ledger Technology (DLT). Digital assets are distributed, rather than copied or transferred, creating an immutable record of an asset. It is a revolutionary and a prime technology for each sector, potentially. Each block in the chain contains several transactions, and with each new transaction, a record of the transaction is added to each participant’s ledger. For instance, a Bitcoin block contains information regarding the receiver, sender, and the number of the bitcoins to be transferred.
The properties of Distributed Ledger Technology (DLT)
- Immutable: Validated records are irreversible and tough to modify.
- Unanimous: The validity of each record is agreed upon by all network participants.
- Time-stamped: A transaction timestamp is recorded on a block.
- Anonymous: The identity of the participant is either anonymous or pseudonymous.
- Security: Records are individually encrypted.
- Distributed: Participants have a copy of the ledger for complete transparency.
- Programmable: A blockchain is programmable (i.e. Smart Contracts).
Blockchain technology is considered to be a futuristic tool, having a wide range of applications across several industries or sectors. At present, it is utilized to facilitate identity management, smart contracts, supply chain analysis and so forth. It is difficult to completely grasp the concept of blockchain technology. However, the fundamentals are uncomplicated.
In years to come, blockchain technology would be significantly determined by the field of cybersecurity, rationally. It is an emerging technology and its potential cannot be validated or disregarded, yet. In financial transactions, it would not only save time and money, but it would make the transaction processing and authentication process without possible interruptions.
Blockchain developers have gradually gained momentum in the job market, there has been an increase in demand for software engineers, knowing blockchain development, in the past few years. Blockchain is an ever-growing chain of blocks, which is chronologically managed. Its decentralized nature is one of the most important features of the technology. It’s the most cutting-edge technology at present and attracted high attention.
In the information technology domain, it is one of the most encouraging upcoming technological trends. The numerous benefits involved in developing such a platform have managed to attract the attention of investors, from the financial sector as well as several technological giants.
BLOCKCHAIN AND RENEWABLE ENERGY SOLUTIONS
Climate change is a global concept, it is a significant variation of the average weather conditions of the earth. The rise in the average temperature, globally, is generally known as Global warming. There have been concerns around global climate change and measures to ensure the effective implementation of renewable energy. The major renewable energy sources currently are-: 1. Solar energy. 2. Wind energy. 3. Hydro energy. 4. Tidal energy. 5. Geothermal energy. 6. Biomass energy.
However, even though there is an increase in general public awareness, directing their attention to renewable energy from leading renewable energy companies in India, as a significant component of sustainable development, it may not be adequate. According to the International Energy Agency, renewable energy isn’t growing in accordance to meet the climate goals or challenges. The IEA forecasts of renewable energy, growing to account for 18 per cent of the world’s energy by 2040, that’s below their ideal sustainability target of 28 per cent.
Could blockchain technology assist the search for renewable energy solutions, in a more resilient manner?
Blockchain technology has made an impact in the technology sector and gradually made a place in the energy sector and effectively solving issues related to it. The features as decentralization and distributed networks, make it vividly clear that the technology was specifically built for such an application.
There are various advantages of blockchain technology that can be utilized by the government, to begin building distributed power grids of their own. There are successful examples of this approach, taking place in the real world right now already. For example, the Eloncity Model, which is backed by the non-profit AI Grid Foundation and Swytch, is another blockchain technology in action in the renewable energy sector.
To create financial incentives for both individuals and businesses to adopt more responsible sources of energy and to reduce their dependency on fossil fuel, perhaps is the concept. It is also applicable to governments, looking to implement more sustainable energy systems. As the renewable energy sector continues to grow, looking for proper ways to implement the right strategies could be the ultimate vision.
A Centralized System and Decentralizing the Grid
Currently, there are a variety of issues that plague the energy grids already in place. One of the major drawbacks is the centralization of power grids. The problems of centralized power grids have now become apparent and it is also responsible for centralized failures. Due to the centralized nature of the systems, there are high chances of system failures.
The most salient answer to the flaws of a centralized system is perhaps decentralization. The decentralized energy grid can be far more resilient and could eventually avoid power outages altogether.