London–based start–up Electron hopes to implement the potential of blockchain to transform the UK energy markets.Electron has recently developed a
London–based start–up Electron hopes to implement the potential of blockchain to transform the UK energy markets.
Electron has recently developed a platform on the Ethereum blockchain. Also, they have shown data from 60 energy suppliers – proving that supplier switches can be performed 20 times faster than current rates, reported techcrunch.com.
“The advent of blockchains provides an opportunity to improve existing industry codes, originally designed for centralised service platforms, and evolve these to take advantage of the transparency, immutability, security and extensibility inherent in a distributed ledger.”, according to Electron`s official website electron.org.uk.
Speaking to techcrunch.com, co-founder Paul Ellis said that the energy market relies on technology that is about 25 or 30 years out of date. With this in mind, the decentralized blockchain may boost innovation and bring various helpful benefits to the energy sector. For example, the blockchain technology can be used to improve registration services (the way energy industry assets are being recorded).
“These are good reasons to have blockchains. They’re very cost effective. You don’t require third party intermediaries to operate these shared platforms,” said Ellis before techcrunch.com. “A blockchain provides a way to remove the cost inefficiencies and the barriers to innovation that a central service provider would necessarily bring.”
In the future, blockchain technology can also enable households to participate in peer to peer energy and flexibility trading. In this way, they will be able to turn energy surplus and varying demand into potential market, reads on techcrunch.com.
The blockchain start – up, that was founded in 2015, has received £400,000 (~$500k) in pre-seed funding from private investors. At the same time, they have been awarded two Innovate UK grants (totaling £150k) to develop their company.
“I think the logic of co-operating to develop this is very strong — so we’re very optimistic that we’ll get a lot more buy-in on this, and get a lot more people around the table,” said co-founder Ellis in an interview with techcrunch.com.