Blockchain is in vogue right now for every industry under the sun. It’s a race to see how each vertical can find a way to implement blockchain to be considered tech forward. Especially for antiquated industries needing a facelift, like electricity. Where do the utility companies lie within the realm of blockchain?
From what I’ve seen with some utility companies, most are dipping their toes into the water by trialing a few pilot projects. Some for demand response like Omega Grid, some for carbon credits for cars, and some for testing microgrids. When it comes to utility company blockchain pilots, should their ledgers be public or private?
The purpose of blockchain is to be decentralized, permissionless, and transparent. But utility companies are not always the case. Even I don’t fully understand some of the line items on my monthly electricity bill.
Utility companies so far have been favoring enterprise solutions with private blockchains. Many feel that public blockchains are not sufficient because: public blockchains can expose sensitive data, they aren’t scalable for commercial use, and they are costly. More are inclined to use private chains because they closely resemble a hybrid solution of embracing technology but not going overboard. I equate this idea to a company’s intranets. Good in theory, but pales in comparison to the internet with its full-fledged adoption.
Advantages of public blockchains
I believe that public blockchains offer more value to utilities because they offer interoperability and innovation while mitigating risks of outdated. Public blockchains allow anyone to build on it with pre-existing open source tool kits meaning utilities will not need to invest in specialized training. Interoperability is important because it’ll allow more smart devices to tie into the grid. Especially for smart meters and EV chargers. Finally, public blockchains offer transparency with governance. Governance decisions on public networks are made by a multiplicity who are often public stakeholders. Open platforms are community focused and driven by creating value for everyone.