Challenges facing the Blockchain Technology in Energy Industry (Oil and Gas, Utility)

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The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.

Why Blockchain is NOT YET a major disruptive technology for Energy Industry?

1. Innovation:

It will take time for blockchain to seep into our economic and social infrastructure. The process of adoption will be gradual and steady. This is like internet when yahoo, AOL had website but not many Energy companies has online presence, we are in a very early stages.

2. Issue with Trust:

Still users are not comfortable having money in their electronic/mobile devices. Believability and gaining trust of users. Building this trust and credibility will take time.

 3. Industry Mindset:

Particularly Energy industries may view blockchain as “disruptive” because it “can attach a traditional business model with a lower-cost solution and overtake incumbent firms quickly.” However, they argue that blockchain is most importantly a foundational technology that can be used to create new business models and underpin business, economic, and social infrastructure.

 4. Acceptance:

Currently Trading, Contract areas for Energy industry has implemented blockchain technology most. They’re looking to improve efficiencies with cross-border transactions. Bitcoin is the most well-known blockchain application.

Take away:

Blockchain is still in its early stages for Energy (Oil and Gas, Utility, and Green Energy), and new crypto technology applications and advancements are regularly occurring. I expect big changes over the next few years in the industry as more and more companies doing Blockchain Proof of Concept (PoC), creating a business case and building a startup team for this disruptive technology.

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