ConsenSys Now Distributes Power in the United States Using Ethereum
Blockchain software company ConsenSys has started distributing electricity to residents in the United States via its startup Grid+, which is built on the Ethereum network.
Ethereum is now used for power distribution
Electricity is now being distributed in the United States by Grid+, a blockchain startup operated by ConsenSys.
ConsenSys, which claims to be the largest blockchain software company in the world, was founded by Joseph Lubin, the co-creator of Ethereum.
Joseph Lubin announced that the blockchain startup has successfully started supplying electricity to its clients who reside in Texas.
“Groundbreaking milestone. The tireless Grid+ team has begun supplying power to their first four customers.”
The new milestone comes not long the blockchain company announced that its team has reached 900 employees.
Power distribution market of ConsenSys
Grid+ focuses on distributing renewable electricity wind and solar energy to its customers using the Ethereum mainnet.
ConsenSys has announced that it plans to use a blockchain solution, as well as a unique hardware gateway system, to distribute renewable electricity across the United States.
The company focuses on renewable electricity in part due to the increased demand for renewable energy in the United States over the past few years, accounting for an estimated 20% of the energy consumed in the U.S.
The blockchain startup offers a deregulated market of renewable electricity, which has recorded increased demands specifically from trusted distributors of electricity.
Better transactions using Grid+
To compete favourably in this market, ConsenSys has developed a system that allows its users to use decentralized applications to process transactions faster and cheaper on the Ethereum network. The project wrote:
“Through this experience, ConsenSys identified the opportunity to form Grid+, which will build natively Ethereum-based utilities in deregulated markets. Grid+ will demonstrate production ready blockchain-based energy solutions at scale in competitive commercial environments in order to enable the trans-active grid of the future and prove the advantages of Ethereum over incumbent technologies,”
To achieve this, ConsenSys utilizes the Ethereum scaling network called the Raiden Network, popularly referred to as the Lightning Network of Ethereum.
Although the Ethereum network is currently capable of handling only about 12 transactions per second on its mainnet, the framework of Grid+ allows for better throughput.
The Grid+ network relies primarily on Internet of Things (IoT) devices, which makes it possible for the network to reach theoretical throughput of thousands of transactions per second.
Customers’ payments are processed by the hardware and software stack of Grid+, allowing users to program the purchase and sale of electricity using a function known as a Smart Agent.
The problem of renewable electricity
Although clean and renewable energy sources are the best form of electricity, grid distributors still struggle with maximizing their supply. A significant example can be found in Chile.
Last year, solar power plants in Chile produced more electricity than could be supplied. As a result, local distributors had no efficient way of storing and distributing energy. Grid operators had to give its supply of electricity for free.