Why hasn't a renewable energy blockchain REALLY been successful yet?
Why hasn't a renewable energy blockchain REALLY been successful yet?
Hear me out. On Reddit, the #solarpunk channel is decidedly anti-blockchain. To me, this is totally surprising and against the actual ethos of Solarpunk - to integrate technology for a bright, clean future.
Granted, blockchains don't have much reputation in alternative circles. And for a good reason. A lot is just linked to scams, get-rich-quick dudes, and speculation, apart from energy consumption arguments.
But blockchain at its core is just a distributed database. One that has no central authority, can not be tampered with, cannot be altered, nor taken down if parametrized accordingly.
This allows - as a potential - to democratize access and value creation. Renewable energy is also fundamentally decentralized. Everyone can participate!
Now, with the costs of renewable energy creation (notably solar) shrunk significantly, and the demand for energy consumption rising heavily, if we only think about the booming electric vehicles alone -
What if people could earn money by generating solar energy and selling directly to vehicles, instead of the grid? I believe this could actually boost renewable energy generation over the roof.
Generators would be rewarded with a blockchain token for the energy generated, while consumers would pay for the energy in those tokens. Therefore speculation would be curbed as the tokens are for a real thing, energy, which on top is a stable unit - kWh.
Of course there are a lot of hurdles here - mostly institutional. Usually, energy is controlled by local authorities. They don't want to allow anyone access to this market.
Then there is the distribution issue. Energy must be transported to the points of consumption, the charging stations. But due to the decentralized nature, this could actually result surprisingly cheap, as instead of transporting large distances, more charging stations in neighborhoods could reduce those distances. But still, this would require upfront charging stations and distribution investments.
I am an engineer. A dreamer. More often than not, as many many others, the realities of markets and economies clash with such ideals, thrashing generally good ideas.
But I wonder if such a scheme could made be possible. Anyone having some good suggestions? I mean mainly from the economics side. How to design the scheme, how to make it so that it is interesting to everyone? There are already several solar energy blockchains, but they kinda failed to get traction.
For the more radicals - I also dream of a money-less Solarpunk future, but to date, it seems further away than ever, looking at the right wing surge everywhere. Maybe we can build bridges at least from the technological side. Thank you if you got so far. Happy to respond to critique and questions.
Successful in accomplishing what?
Precisely my thought. I've yet to see an application of block chain that hasn't already been solved by some other technology.
There's application in responding to requests for information quickly, in a mesh network, perhaps in presence of malactors. For example the medical records of injured US soldiers are stored in and delivered using a block chain solution.
There's application in a hypothetical currency free from the corruption of governance. For example, an orange President couldn't print gobs of money during a pandemic, devaluing your currency, then hand that money to corporations.
I can turn this around. I have yet to see some of the characteristics of blockchains being solved by some other technology. You may say it's irrelevant because they are useless, and I am not going to argue against that. But it's a technology and as such has potential. Maybe not today, maybe never. It's like Solarpunk. We don't know if it will ever be real.
So you think cryptos "solve" the same problem as paper money? A distributed open network is just the same as some rich bros printing paper?
Sometime the point is not to solve a new problem but to improve a fundamentally broken "solution".
Bitcoin is the only inflation resistant currency I know of.
In allowing people generating solar energy to be fairly rewarded. Schemes today are at the mercy of the utility companies. Basically, to incentivize people to generate more solar energy than is already happening. Think of roofs.
I realize this is only meaningful if for some (I guess economic) reason they get more through that than through selling to the grid.
The blockchain solves one problem: trust. Do we really have that problem in normal energy markets?
People who buy and sell energy would need to trust each other and the middle man in between them. If they have trust issues, using a blockchain could make sense. As far as I can tell, the current system doesn't suffer from a lack of trust, so what would the blockchain do in this case?
Edit: Turns out, it would be more accurate to say that it redistributes trust away from a central authority... well at least in most cases it does. There are still situations when even a blockchain has a central authority you need to trust. It's not guaranteed to solve all trust issues, but in the best case scenario it can solve some of them.
So we should waste perfeclty good electricity to mine some blackchain ... for what reward? Some meme currency?
How would this generated electricity be transferred to the purchaser? So I generate 1 kW of power and get one of these tokens. I put that token up for purchase. Somebody buys that token entitling them to 1 kW. Now how does that 1 kW go from me to them? If the answer is the power company, now you need to rope them into this scheme and I'm not seeing any reason at all why they would do that.