Kitanin S.S., Smolyanov B.D., Chemeris O.S. Prospects of blockchain technology application in the energy sector of the economy

Abstract

The energy sector of the global economy can be optimized by the introduction of blockchain as an innovative solution. The introduction of blockchain technology into the energy sector represents a paradigm shift that could redefine market interactions, drive the adoption of renewable energy and change the industry’s infrastructure. However, there are significant scientific and practical challenges to be addressed to realize its full transformative potential. This article explores the multifaceted dimensions of blockchain application in energy sector, considering the potential for decentralization and transparency enhancement that could redefine industry dynamics and market roles. It critically analyzes blockchain’s scalability and performance limitations that challenge its widespread implementation as a universal platform for energy infrastructures. Furthermore, the discussion extends to the security and regulatory concerns that blockchain introduces, questioning the feasibility of complete autonomy from centralized systems and the compatibility with existing legislative frameworks. The paper also investigates how blockchain could disrupt traditional energy company operations, hypothesize the emergence of new business models based on principles of decentralization and collaborative consumption, and scrutinize the power balance shift and responsibility reallocation between central power plants and local energy sources. Lastly, the implications of blockchain on the acceleration towards renewable energy sources are assessed to determine whether blockchain could act as a sufficient catalyst in this transition. In conclusion, the discourse on blockchain’s impact on the energy sector uncovers contrasting points and potential research directions, necessitating a critical evaluation of current scientific hypotheses and practical implementations to unravel the technology’s comprehensive impact on the energy industry and society at large.