As we all know, soon after 2010, the technology became faster than ever before. It started adopting new chances on the decentralized protocol over the centralized one. Almost every technology is seeking the support of blockchain in-order to avoid human interaction. Moreover, global technology firms are on a mission to uplift the blockchain into a whole new level. One way or another it is up to us to push the rules and laws created by a centralized system and go for “evolution to revolution”.
The blockchain technology is disrupting almost every field in the technology and everyday people are trying to unleash the future capabilities of this newborn craft, and now its started disrupting the field of energy distribution. Blockchain in Energy Switching comes with immense possibilities of decentralization and autonomy. Since from the invention of energy and its distribution method, people are supporting the centralized technology, which itself proved as non-viable one.
The reason for being not a viable one is the high degree of human interaction. Everyone in the world is paying bills for energy like this….
In a centralized energy distribution:
Energy bills = consumption bills + middlemen charge(service charge)
In order to avoid this middleman, we should definitely adopt this decentralized system
Service provider -> consumer(direct interaction)
Let’s make a peer to peer connection, where we can directly connect with the energy providers. However, establishing a decentralized connection is not enough. Currently, we are living in an era where almost everything is automated, then why should we worry about our energy bills and its switching method.
BLOCKCHAIN IN ENERGY SWITCHING;
Let’s think about the scope of blockchain in energy switching and its automated bill payment method. Blockchain technology provides a vibrant feature called “smart contract”, which allows energy switching more easier that too in a secure way.
1. We already have energy meters in our home, and this energy meter is always on and internet-enabled.
2. The smart contract is something which can accept any kind of digital information.
3. So, through energy meter, the smart contract can access the energy usage of the particular home and keep the record of any kind of digital information.
4. Thus the smart contract is hosted as a website and through the web portal, the service providers can upload their current energy plans.
For example, energy, LPG are the energy services used by people. So those energy providers could update their energy plans based on the current market conditions.
5. The switching process is carried out by smart contract based on the information from the energy meter and the available plans from all the service providers.
Details of available plans: (Table 1)
|Service Provider 1||Service Provider 2|
|Morning = $0.2/kWh from 6am-10am||Morning = $0.4/kWh from 6am-4pm|
|Evening = $0.4/kWh from 4pm-8pm||Evening = $0.3/kWh from 6pm-10pm|
|Remaining time = $0.1/kWh||Remaining time = $0.05/kWh|
Energy meter output to smart contract: (Table 2)
|Customer 1||Customer 2|
|Maximum energy usage = 10am to 4pm||Maximum energy usage = 6pm to 10pm|
Percentage (usage)= 75% (day time)
Percentage (usage)= 90% (day time)
6. The smart contract categories each customer based on the secret ID of energy meter.
7. The customer can get an account by entering the secret ID in the web portal.
8. When the customer registers his/her energy meter in the web portal, the tracking function in the smart contract gets activated.
9. The smart contract collects the data from the energy meter as given in Table2.
10. Smart contract compares the Table2 data with Table1 and switches to an appropriate plan, which is suitable for the customer.
11. Moreover, the platform also provides a brand new tokenized payment system.
12. The user can buy the corresponding token from the crypto-exchange with fiat/cryptocurrencies.(let the token be “x”)
13. The smart contract helps each customer to store the “x” token in their account(provided during registration).
14. The smart contract only read the energy meter, when the user owns a particular amount of "x" tokens.
15. The smart contract keeps monitoring all the user consumption in a particular time interval.
Through, this technology the customer can avoid the middlemen service charge and also save energy as well as money. And the service providers are restricted from the frequent leverage of their unnecessary hype of energy cost.
It also helps the customer to pay their energy bill in a more easier and advanced way. Moreover, every energy consumption gets recorded in the blockchain.
The smart contract automatically pays the bill in the form of a token to the corresponding service provider. And the service providers can exchange the token into fiat from the crypto-exchange.