TAGgreentech

Energy Business and Blockchain #5 (final) – Notable areas in the future based on analysis of areas of applicaiton
The previous article focused on ICO in the energy sector. The conclusion was that strengthening financial regulation is an irreversible global trend and that regulation-compliant security tokens and utility tokens for decentralized protocols are future possibilities. This article, the final article of the series, wraps up blockchain application in the energy sector as of June 2019. What business can take advantage of blockchain technology? I will try to analyze the area of application of blockchain technology in the energy sector. Setting aside whether it is good or not, many applications are seed oriented. In other words, it is not that solutions are developed out of social issues to solve, but that applications developed out of functionalities and characteristics of blockchain technology are proposed.   A short description of characteristics of blockchain technology, or distributed ledger technology to be exact, is that multiple participants that are connected in a peer-to-peer fashion in computer network approve transactions by following defined protocol and maintain record of transaction records. Cases of applications that take advantage of the characteristics of the technology can be organized as follows:   Many existing cases use the characteristic of “decentralized transactions” that trade energy (or ancillary objects to electricity such as attribute values associated with electricity and flexibility [1]). Those include cases that makes measured electricity digital assets, ones that performs settlements (financial transactions), and ones that combine the both. [1] Ability to respond to variations of demand and supply, not the value of electricity per-se   Energy transaction applications include peer-to-peer energy trading that is the most popular application in the energy sector, trading in wholesale market, grid management applications such as flexibility trading and virtual power plant (VPP), and disintermediation model that proposes means for consumers to access directly to wholesale market. Financial transaction applications include fundraising…
Energy Business and Blockchain #4 The latest trends in energy ICO
In my previous article, I looked at the dawn, present and future potential of energy trading platforms, the most popular application of blockchain technology in the energy sector. In this article, I will cover energy-sector ICOs. After first taking a bird’s-eye view of overall ICO trends beyond energy, we will then consider the future of ICOs in the energy sector. The current state of ICOs Following a sharp increase in ICOs in 2017, the first half of 2018 saw ICOs continue to boom with over 100 each month. A downward trend began in the second half, however, and according to Coin Schedule, January 2019 had only 24. Figure 1 shows Coin Schedule’s number of ICOs implemented each month from January 2016 to January 2019.1  1. Although the numbers differ depending on the source, this data is quoted from Coin Schedule, which provides data from 2016 to the present. I believe it is sufficient to observe the trend. Other sources include ICObench and Coindesk ICO tracker.   Figure 2 shows the change in the amount of capital raised through ICOs and the cryptocurrency market capitalization over the same period. The peaks are shifted slightly from the cryptocurrency market cap but show the same trend – a current downturn. The March and June 2018 peaks consist primarily of the super-large Telegram and EOS ICOs, which raised $1.7 billion (approx. 187 billion yen2) and $4.2 billion (approx. 462 billion yen) respectively. 2. The exchange rate is 110 yen per $1. Overview of energy-sector ICOs According to Coin Schedule, of ICOs implemented in 2018, “Energy and Utilities” projects raised $322 million (approx. 35.4 billion yen), 1.5% of the total. From the second quarter of 2017 to the first quarter of 2018, blockchain-related energy-sector startups raised almost the same amount, $324 million, 75% of which…