Why Blockchain is NOT YET a major disruptive technology for Energy Industry?
1. Innovation:
It will be a while for blockchain to enter into our economic and social infrastructure. The process of adoption will be gradual and steady. This is similar process to the internet pioneers when yahoo, AOL introduces webpresence. Today not too many Energy companies have online presence, we are still in very early stages for next generation Energy adoption.
2. Issues with Trust:
Users are still not comfortable with having money in their electronic/mobile devices. Believability and gaining trust of users. Building this level of trust and credibility will take time.
3. Industry Mindset:
Particularly Energy industries may view blockchain as "disruptive" because it "can attach a traditional business model with a lower-cost solution and overtake incumbent firms quickly." However, they argue that blockchain is most importantly a foundational technology that can be used to create new business models and underpin business, economic, and social infrastructure.
4. Acceptance:
Currently Trading and Contract areas for Energy industry has implemented blockchain technology at a minimum. They're looking to improve efficiencies with cross-border transactions. Bitcoin is the most well-known blockchain application but there are many well know alternatives such us Ethereum.
Take away:
Blockchain is still in its early stages for Energy (Oil and Gas, Utility, and Green Energy), and new crypto technology applications and advancements are regularly occurring. We expect big changes over the next few years in the industry as more and more companies doing Blockchain Proof of Concepts (PoC), creating business cases and building advanced engineering teams for this disruptive technology.
