Blockchain one of the most talked about technology is paving the way for a new era of development in various divisions. We already know that various big names in the industry like Wallmart, Amazon, IBM, Microsoft are already exploring various ways to use Blockchain technology. Every day you would find that some of the other company is investing in using Blockchain technology and the new addition to this list is Siemens. This German tech giant has announced its interest in combining its electricity and energy division with Blockchain platform to make the operations even more seamless.
Why is Blockchain a revolutionary technology?
It leaves many of us wondering why Blockchain is a technology that has disrupted so many industries recently. The conventional technology that we are using is based on a centralized system which means that there is a greater probability of losing the data in case of some discrepancy in the centralized server. However, if we take into consideration, Blockchain then we work on a decentralized distributed system. It means that the entire information or data or transaction as you may say is distributed in the network. So, even if one of the servers fails, the information is still available and you can keep on performing your primary task without worrying about recovering the data.
This makes Blockchain become the technology of the future. Not to miss that this technology also has its own sets of pros and cons. One of the major drawbacks that Blockchain hold is that it is a new technology and thus cannot be completely trusted. But big companies penchant to explore its application has made Blockchain become a global topic of discussion. This is not merely restricted to the financial transaction but now Blockchain finds its use cases even in other sectors like medical, healthcare, supply chain and now the energy sector as well.
One of the key reasons why tech stalwarts are so interested in Blockchain is that it is going to reduce the cost and save time. Transparency is one of the key aspects on which most of the businesses rely and for now, we can say that Blockchain offers this transparency.
The recent news about German tech giant Siemens initiative to join hands with Blockchain company showcases how strongly Blockchain is influencing every industry. It won’t be wrong to say that this move by Siemens is to enhance the performance of its energy division and also increase the level of transparency.
What is Siemens doing?
Well, as mentioned above, the tech giant Siemens has made a move in the Blockchain division. The company’s interest to use this technology to bring innovation in two of its decision. Presently the company aims at implementing Blockchain technology in the following two divisions:
- Energy Management
- Power Generation Services
The primary objective of amalgamating with Blockchain technology is that Siemens wants to create a system for the future and secondly, with this move the company aims to store and distribute energy in a more efficient manner.
The company will be collaborating with a third-party Blockchain developer- Energy Web Foundation that will be working on creating Blockchain-based solutions that can be implemented in the above mentioned two divisions of Siemens. Although much of the information regarding this is not revealed as per the whitepaper published by the Energy Web Foundation, the company will be running a custom implementation of Ethereum. But, this new system developed by them would be faster and efficient than Ethereum. The Blockchain company claims that the new system is going to be 30 times faster than the Ethereum.
But there is a possibility that this benefit will come at a cost of centralization. The company is also running another permissioned Blockchain.
company’s officials believe that with the help of Blockchain technology they would be able to provide a more efficient system to their customer by enhancing the interpretability of area, linking the customers directly with the energy producers and network operators.
Apart from this initiative, Siemens is also making use of Blockchain technology to provide microgrid control solutions to optimize control over energy consumption. This is not the first initiative by Siemens, in 2016, the company collaborated with LO3 Energy, a US startup to develop microgrids.
This new initiative will allow local trading between energy consumer and producer and all this will happen on Blockchain platform.
Well, the future course of Siemens initiative in the field of Blockchain will be decided over a period of time. But, currently, we can say that Blockchain is going to revolutionize most of the sectors for good.