Accelerating the energy transition with Web3 technologies

“We are witnessing a paradigm shift from a centralized Internet world to a decentralized world, characterized by disintermediation and democratization. There is a lot of overlap with how the energy sector is transforming to become more decentralized and distributed in nature,” says Sabine Brink, Head of Blockchain and Web3 at Shell.

There is a wide range of opportunities for applications of Web3 and blockchain technology to support the urgent energy transition. For example, Shell and a number of other global companies have launched Avelia, a booking and claims solution to help increase the supply of sustainable aviation fuel. Tech companies like Toucan, Moss.Earth and JustCarbon score carbon credits, giving customers an easier way to offset carbon emissions. Peer-to-peer energy trading is becoming a reality thanks to companies such as Powerledger, Grid+ and LO3 Energy.

Paul Brody, Global Head of Blockchain at EY, emphasizes the transformative nature of this infrastructure technology: “In a blockchain-based ecosystem, you can have a very fluid digital interaction where you can choose from a dozen different providers. , and you can rate them. all on a digital basis.

Decarbonization requires decentralization

The fight against climate change requires above all one demand: the decarbonization of energy systems. This requires further electrification of economies and decentralization of the energy system.

Given the nature of renewables, especially solar and wind, the electricity produced is not always readily available (without storage) and is often geographically distant from where the electricity is needed. Furthermore, with the advent of consumers – consumers who also generate energy that can be fed back into the grid – existing energy systems need a major overhaul.

“We have many more players entering the energy market, as well as a diverse mix of low-carbon energy products. This requires the global orchestration of large-scale energy systems to ensure that we achieve net zero at all levels. Furthermore, transparency, verifiability and accountability will be essential. explains Brink. “Blockchain as a decentralized network technology makes a lot of sense to support this.”

These changes to the energy system will exponentially increase the number of transactions, including micro-transactions, that will take place every day between many players and energy assets. These must be recorded and managed in a way that guarantees transparency, trust and verifiability of the data. It is vital that transaction systems and regulations are developed to meet this need.

The role of blockchain technology

Blockchain technology, a digital and decentralized ledger that holds multiple copies of transactions, makes data tampering nearly impossible. Although developed for cryptocurrency, which remains strongly associated with digital currencies, blockchain lends itself to many uses. Its main advantage, incorruptibility, generates a valuable asset for markets: trust.

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