As of April 5th, blockchain technology has hit yet another milestone. The Chilean National Energy Commission (CNE) has just announced that it intends to integrate market and fuel prices onto the blockchain all while being compliant with renewable energy laws.
The commission has been testing the technology since February with the intention of improving the security of energy data. Although it is not the only country to have energy data handling problems, it is the first to tap into blockchain technology for a solution in this area. The traditional system being employed simply has too much room for human accounting errors. Not only is the current system prone to errors, but it also lacks the transparency needed by concerned parties.
Another concern is the hackings that come every now and then. With a blockchain-based approach, Chile turns to a decentralized system where records are distributed to a large number of nodes. This then effectively boosts data integrity by making databases very hard to locate much less attack.
CNE Executive Secretary Andres Romeo expressed sentiments on behalf of the establishment:
“The National Energy Commission has decided to join this innovative technology and we have decided to use blockchain as a digital notary, which will allow us to certify that the information we provide in the open data portal has not been altered or modified and left an unalterable record of its existence.”
To further pursue the benefits of blockchain in the nation’s energy sector, the trial will involve employees taking data from Energia Abierta or Open Energy – an energy data platform. The software to be used will serve as a verifier for the data that passes through it. The data will then be recorded using the Ethereum blockchain which makes it available for the public to see via public GUIs (Graphic User Interface).
Although not completely run on blockchain technology, the new approach will definitely be an improvement to the traditional model due to the added transparency and security.
Chilean Energy Minister Susana Jimenez further expressed confidence in the new approach in a statement:
"We are interested in taking this technology from a conceptual level to a concrete case, understanding that it's considered to be the most disruptive technology of the last decade by world-class experts and that it could be part of day-to-day life in the next few years."
This is not the first time a country has adopted Ethereum technology to traditional models. Just a few months ago, Canadian government recorded data on Grants using Ethereum with the intention of making the transactions verifiable. As can be seen in Chile’s move, more countries are acknowledging Ethereum’s potential in this department.