Blockchain Technology Could Be Key To Smarter Energy Grid

The same technology underlying the efficiency of bitcoin transactions and largely responsible for the online currency's success could be the key to developing a smarter energy grid. Blockchain, a shared, encrypted ledger maintained by a network of computers, gives bitcoin transactions their unique peer-to-peer quality, making the entire system decentralized without a central repository or single administrator. While the electricity grid still relies on centralized plants generating power sent over long distances, blockchain technology could help modernize the system, making it easier for smaller, distributed networks to connect to the grid and exchange power locally.

These smaller, distributed power generators and storage systems, such as rooftop solar panels and electric-vehicle batteries, are already connecting to the grid in growing numbers. However, when these systems produce excess energy, they are forced to sell it back to utilities, often waiting 60-90 days