Our mainstream media loves to bombard us with the fear of how vulnerable our ancient power grid system is to being taken out, and with minimal effort.
As massive chucks of ice continue to break off in Antarctica, aiding in the creation of record breaking storms that have been wreaking havoc in North America, more and more are experiencing how miserable life can be without power.
Hurricane Harvey for example has left 4,000 Texan homes and facilities without power for weeks.
As of now we receive our power from centralized utility companies at regulated prices. Power leakage is considerable and the utility company is able to capture that excess power and redistribute them right back at us at full price.
If a pole or cable falls down, the other nodes around it do nothing.
Our current power grid is inconvenient, extremely wasteful, expensive, and dangerous.
Now imagine if you could redesign the grid to run itself, where for example each pole could report its status in real time and trigger actions for replacement or repair. They could potentially reassign their responsibilities to the nearest working pole, such as bandwidth and storage, even diverting power.
This is the beauty of blockchain technology. The energy grid is merely one aspect of our lives that it has begun to transform.
Related Article: Bitcoin is Unstoppable. Let the Revolution Begin.
Blockchain will digitize every node to create an entire new decentralized peer-to-peer model of power production and distribution that is much more secure and reliable.
“The network becomes far more resilient because all of the assets in the grid are helping to maintain and run the utility grid. It’s a distributed peer-to-peer Internet of Things network model with smart contracts and other controls designed into the assets themselves.
When a hurricane, for example, destroys transmission towers or fire cripples a transformer substation, the grid can quickly and automatically reroute power to prevent a massive blackout, and locally generated power, used locally, is significantly more efficient than the utility-scale model, which relies on transmitting energy across vast distances, where energy is lost.”
Lawrence Orsini is the founder of LO3 Energy and with G.E. has begun to transition the power grid onto the blockchain, starting in Brooklyn.
“With our microgrid solution in Brooklyn, we’ll demonstrate just the beginning of what blockchain can do in the transactive energy world.”
Cities and countries will be able to invest in what are called Virtual Power Plants (VPP): energy generating resources that are connected across a smart grid that are not concentrated in one central location – collecting all energy produced by local solar and wind powered micro-grids – able to outproduce any traditional power station while maintaining the lowest possible economic and environmental cost.
You and your neighbors will be able to buy and sell your own energy, giving massive incentive to renewable energy production.
“Distributed energy is really about generating your own energy, being self reliant and selling excess energy to others.”
– David Bartlett, Chief Technology Officer for GE’s digital power services business “Current”
The Blockchain (R)evolution has begun.