Blockchain Could Transform Public Utilities
The public utilities sector is awash in opportunities to implement emerging blockchain technologies that make the world a better, fairer, and more profitable place for everyone.
WHAT IS BLOCKCHAIN? A blockchain is a decentralized, distributed, and oftentimes public, digital ledger used to record transactions across many computers so that any involved block cannot be altered retroactively.
Most available literature on blockchains reiterates obvious industry benefits: scalable peer-to-peer energy trading; instantaneous balancing of supply and demand, EV charging stations, and Renewable Energy Certificates (RECs). Most experts agree that applied blockchain technologies are still 2-5 years away, but due to the graying of decision-makers who do not understand the technology, it could take many utility companies 5+ years to deploy—that’s why it’s important to innovate now.
Blockchain is the cornerstone needed to transition from analog utilities, like electricity and water, to digital utilities that address politically-challenging modern societal needs for basic income, housing, vehicles, secure transmission of healthcare records, secure elections and even social media networks. Blockchain use by utility companies solves more than just their own industry problems and opens new markets to stagnate fossil fuel companies. Moreover, no specialized equipment is necessary beyond current practices.
UNIVERSAL BASIC INCOME
Mining cryptocurrency uses a lot of energy. Existing power generators can be modified with relative ease and combined with rooftop solar to generate cryptocurrency with blockchain keys that double as customer accounts.
Using publicly financed power generation to mine a unique cryptocurrency could allow the utility to distribute the tokens into customer accounts, generating wealth for ratepayers’ specific assets fundamental to modern life. Customers paying their utility bill in USD could be given a corresponding number of utility cryptotokens to save or convert into fiat currency for their own household needs.
The process is like corporate dividends, except instead of distributing money to investors, the company distributes a proprietary cryptotoken to ratepayers that holds value and protects against hyperinflation due to unlimited Quantitative Easing.
HOUSING AND PERSONAL TRANSIT
Housing and transportation can be handled on blockchain in a similar way to other digital currencies. Using “colored coins” (coins ‘colored’ to represent an asset), it is possible to associate a unique house, piece of land, or another tangible asset with a coin, or fraction of a coin, and exchange it just like any other transaction using digital currency.
PENSIONS
The United States is entering a period of civil unrest and hyperinflation due to its Quantitative Easing policies intended to prop up the stock market. This devalues the US dollar, making it more difficult for people to pay bills using traditional means.
A public-utility cryptocurrency could serve as a hedge against rapidly devalued wealth and pensions using the unique customer keys and generated cryptocurrency that have rapidly appreciating value. Given enough time and tokens, the customer keys could replace bank accounts, IRAs, and pensions by creating a stable, accessible, and replenishing source of wealth administered by the public utility company.
VOTING
A blockchain and ratepayer cryptosystem provide a secure means to facilitate elections, ensuring that each eligible person uses only one vote.
The utility cryptokeys serve as customer identifiers, allowing secure verification of home addresses, and other relevant data. This information forms a transaction for the user agreeing with the government that they are asking to vote. This transaction is then created on the blockchain.
HEALTHCARE
Healthcare as a public utility is a promising end-around unlikely political crusades like an American universal national healthcare system. Customer crypto keys can also be used to store and transmit healthcare records securely, making it easier for patients to receive treatment wherever they are in the world, and the cryptocurrency stored within could be used as payment for the services. Blockchain is also HIPAA-compliant, mollifying any federal complaints.
SOCIAL MEDIA
Blockchain-based social media using customer accounts can enhance utility blockchain technology allowing for the development of applications, smart contracts and real-time user data.
Leveraging the underlying blockchain and digital token platforms, a decentralized social media platform enables end-to-end encryption for every interaction. Moreover, they usually have features like native currency used for in-platform transactions, rewarding users, and crowdfunding.
A utility blockchain-based social media platform, for example, could allow users to track and share their energy use with friends, contributing to a culture that actively combats climate change.
CONCLUSION
Blockchain is an emerging technology that can transform public utilities and other aspects of society. Public-sector utilities are especially well-situated to facilitate the transition due to their multi-state footprint, access to energy generation for mining, and business models that encourage new infrastructure spending.
These technologies will also take years to develop and implement, making an immediate start to innovation and experimentation imperative.
