There has always been a question about how blockchain technology could be used for the benefit of millions of people. Outside the financial sector, at the moment some correct use cases have been examined.
BLOCKCHAIN TECHNOLOGY AND THE ENERGY SECTOR
While there has been a growing worldwide interest in blockchain technology, very few actual use cases exist at the moment. This is normal, as these projects require a lot of research and development before they can be placed on the market. In Saudi Arabia, a new venture is underway to destroy the energy sector as we know it today. Blockchain technology and smart contracts are of great interest in this regard.
Although smart contracts traditionally work better with data already on the blockchain, there have been some major developments in this area. For example, Zap allows you to use real-world events and data to trigger specific actions based on the smart contract. This could open many new business opportunities, including energy trading in a peer-to-peer way.
Apparently, there are many ways to do it. The energy sector has taken note of these smart developments related to the contract and has begun to actively experiment with some of the possibilities. Peer-to-peer energy trading will not only reduce overall costs, but will also remove a lot of administrative work from the equation. Whether it’s electricity, oil, gas or any other form of energy, industry can benefit from decentralized technology in one way or another.
Decoding Blockchain the event in Saudi Arabia
Earlier this week the first event blockchain was held in Saudi Arabia. Riyadh, the capital, hosted the Decoding Blockchain conference. Breaking the energy sector was a big topic during this event. Even the national oil giant Aramco has made clear that they are experimenting with blockchain technology for various reasons. According to them, the “next generation of smart contracts” will play an important role in the future of Saudi Arabia’s energy market.
As mentioned earlier, Zap is making a lot of progress on blockchain technology and smart contracts. Its new energy company, known as EnergyLedger, aims to ensure that contractors get paid for their exact job, as they do, without unnecessary transaction processing costs. The instant settlement of transactions and a reduction of human error are some of the main advantages of the project.
While it is nice to see these initiatives being developed, the task of energy giants remains to embrace this new option. Decentralization and peer-to-peer business are not necessarily of great benefit to companies that have monopolies on particular aspects of the energy sector. Even so, change is coming in this sector, whether companies want it or not. Embracing the blockchain can very well become an absolute necessity to remain competitive.