In the current context of the cryptocurrency market, speculation is increasingly taking precedence over use cases. Yet, it is clear that cryptoassets have much more to offer than that. Widespread adoption will result from the ability to bring value to as many people as possible. One of the best ways to do this is to tackle high-stakes areas where centralization is important and detrimental. Among them, the energy sector.
Energy and the problem of centralization
The conflict between Ukraine and Russia has highlighted the dangerous dependence on Russian oil and natural gas. As a reminder, oil is the main source of energy in the world. It meets more than 30% of energy demand, making it one of the most valuable raw materials on the market. Reduced supply can cause prices to spike, causing the global economy to slow down. The centralization of this industry is therefore a major factor of political fragility.
The sanctions measures taken against Russia have provoked a 40% surge the price of West Texas Intermediate crude oil. As a result, its derivatives have seen their value soar. All of this generated a snowball effect that contributed to increasing the risk of a global recession.
Another worrying fact, the shortage of natural gas has dealt a blow to the world’s electricity production. That said, generally speaking, the energy industry faces a plethora of centralization-related vulnerabilities. It is therefore essential to diversify energy sources. In fact, decentralization of the energy system should be a top priority.
Cryptocurrencies provide answers
Decentralizing the energy model is an approach that does not necessarily imply the establishment of a monetary system based on the blockchain. The first step is rather to encourage governments and industries to widen their supply channels by favoring forms of renewable energy.
To the extent that this option is possible, a significant influx of capital will be required to finance the realization of this project. For this, we could, for example, call on cryptocurrency miners. The goal is for them to settle in these regions and participate in the deployment of these facilities.
In addition, it would be interesting to design intelligent systems incorporated into solar panels that record reliable data on the energy consumption of small businesses on the blockchain. This data can then be converted into energy credits in the form of tradable digital assets. The idea is that more energy-intensive companies buy them to fulfill their ecological obligations.
Solutions that are already being implemented on a very small scale. And yet have the potential to stimulate the economy while limiting global warming.
The democratization of crypto is the dream carried by all its followers. It will not be done by long speeches. For it to happen, it is essential to give meaning to all of this. People will naturally adopt technology if it is useful to them. It’s time to move on to fact-based marketing.
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