To tackle climate change, new dynamics in the energy sector are pressuring providers to shift to sustainable and clean energy. While the move to renewable energy is fraught with difficulties, the paper contends that blockchain can assist the sector in meeting its climate change targets.
Tecnalia Research and Chainlink Labs collaborated on the report, titled “Managing Climate Change in the Energy Industry with Blockchain and Oracles.” It explains how blockchain features like tokenization, hybrid smart contracts, and blockchain oracles can be used to manage climate change in the energy sector.
According to José Luis Elejalde, Head of Energy at Tecnalia, the energy industry may utilize the blockchain to “digitize and value clean energy investments and establish completely automated incentive systems to participate in sustainable practices” during a period of infrastructure upheaval.
Blockchains, according to the report, may be utilized as a database at the calculation layer, smart contracts to establish an application layer, and oracles to make connections at a specialized computing layer. With their assistance, the paper showcases several blockchain use cases, such as carbon credit tokenization and smart grid management, and shows how they may aid in the transition to sustainable energy.
Through a hybrid smart contract framework, the study revealed use cases such as reliable environmental data reporting. According to the report, projects such as Hyphen employ oracles to deliver greenhouse gas statistics on the blockchain and establish proof that firms are following their climate obligations.
Aside from that, the research notes Lemonade’s climate-focused blockchain-based insurance solution, which insures African farmers against the consequences of climate change, such as weather-related natural calamities.
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Chainlink Labs CEO William Herkelrath stated that “data-driven back-end infrastructure is key to creating the cross-industry collaboration required to tackle the climate issue.” Herkelrath also stated that oracles can provide the energy industry with the necessary instruments to combat climate change.
Dr. Jane Thomason stated in an essay that blockchain can assist manage smart grids in decentralised energy markets and enable peer-to-peer energy trade. This might allow people to “purchase, sell, or trade extra renewable power” with one another directly.