The influx of electric vehicles and smart appliances into mainstream use has encouraged the development of microgrids, which in turn is driving the growth of Blockchain technology in the energy sector.
As a result, Blockchain’s market value in the sector is set to grow past $25 billion over the next five years as the world becomes increasingly interconnected and digitised.
An innovative framework to facilitate the trade of power in a reliable and transparent manner has been developed for decentralised energy markets.
Dubbed the Enerchain, it is an innovative, blockchain-based distributed trading infrastructure that enables Over-The-Counter (OTC) energy trading in power and gas products such as standardised spot and forward contracts.
The platform was conceived and designed by European software company PONTON. The underlying blockchain framework (WRMHL) is one of the fastest blockchain environments: Achieving a block time of maximum one second and an average end-to-end transaction latency of less than a second, the system is particularly well suited for trading processes that require fast data synchronisation across participants.
This platform serves as a decentralised exchange (DEX) that enables peer-to-peer trading of commodities without the intervention of a central authority.
These peer-to-peer trades help to reduce the cost price of energy to the consumer as they bypass the third party and their demand for a royalty or commission. With the addition of the lowered cost of renewables, particularly solar photovoltaic (PV), it makes this system even more attractive and accessible.