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Each node stores and forwards information to all other nodes.Every transaction and its associated value are visible to anyone with access to the system.In Austria, the country’s largest utility conglomerate, Wien Energie, is taking part in a blockchain trial focused on energy trading with two other utilities.Meanwhile in Germany, the power company Innogy is running a pilot to see if blockchain technology can authenticate and manage the billing process for autonomous electric-vehicle charging stations.

Here are five basic principles underlying the technology.This coming shift is prompting the industry to focus on blockchain’s potential to make peer-to-peer energy trading a reality, though it’s unclear how soon the nascent technology can be scalable.For example, in a blockchain microgrid project in Brooklyn, N.As in the financial services industry, this capability has prompted some people to explore whether blockchain may one day replace a portion of utilities’ businesses by doing away with the need for intermediaries altogether. What is more likely to happen is that blockchain will become part of the answer to updating and improving centralized, legacy systems with a distributed hybrid system made up of a patchwork of both large power plants and microgrids powered by distributed energy resources such as solar power.Such a decentralized energy system would be capable of delivering efficient, reliable, and, in many cases, renewable energy.

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Blockchain has grabbed the attention of the heavily regulated power industry as it braces for an energy revolution in which both utilities and consumers will produce and sell electricity.

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