New mobility in the energy sector is forcing providers to move to sustainable and clean energy to tackle climate change. While there are many challenges with the clean energy transition, one report claims that blockchain has the potential to help the industry achieve its climate action goals.
The report, titled “Managing Climate Change in the Energy Industry with Blockchain and Oracles”, was conducted by Tecnalia Research and Chainlink Labs. It describes how blockchain features such as tokenization, hybrid smart contracts and blockchain oracles can be implemented in the energy sector to manage climate change.
Jose Luis Alejalde, an energy executive at Tecnalia, said that within the period of infrastructure transformation, the energy industry will use blockchain to “digitize and deliver value to clean energy investments and to design a fully automated incentive system to participate in sustainable practices.” can to do.”
According to the research, blockchain can be implemented as a database in the settlement layer, smart contracts can be used to develop the application layer, and oracles can create connectivity in a specialized computation layer. Through these, the report highlights various blockchain use cases such as carbon credits and smart grid management and how these can contribute to the clean energy transition.
The research highlighted use cases such as verifiable eco-data reporting through hybrid smart contract systems. The study cited projects such as Hyphen that use oracles to provide greenhouse gas data within the blockchain as evidence that corporations are meeting their climate commitments.
In addition, the report also mentions a climate-focused blockchain insurance solution by Lemonade that deals with the effects of climate change such as meteorological disasters by insuring farmers in Africa.
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William Herkelrath, an executive at Chainlink Labs, said that “data-driven backend infrastructure is critical to driving forward the cross-sector collaboration needed to address the climate crisis.” Herkelrath also noted that oracles could give the energy sector the right tools to tackle climate change.
Doctor. In an article written by Jane Thomson, she mentioned that blockchain can aid in the management of smart grids in decentralized energy markets and allow peer-to-peer energy trades. It enables people to “buy, sell or exchange additional renewable electricity” directly with each other.
