Scaling blockchain for the energy sector

Abstract: p.p1 {margin: 0.0px 0.0px 0.0px 0.0px; font: 10.0px Helvetica} Blockchain is a distributed ledger technology enabling digital transactions without the need for central governance. Once transactions are added to the blockchain, they cannot be altered. One of the main challenges of blockchain implementation is how to create a scalable network meaning verifying many transactions per second. The goal of this thesis is to survey different approaches for scaling blockchain technologies. Scalability is one of the main drivers in blockchain development, and an important factor when understanding the future progress of blockchain. The energy sector is in need of further digitalisation and blockchain is therefore of interest to enhance the digital development of smart grids and Internet of Things. The focus of this work is put on a case study in the energy sector regarding a payment system for electrified roads. To research those questions a qualitative method based on interviews with blockchain experts and actors in electrified roads projects was applied. The interviews were processed and summarised, and thereafter related to map current developments and needs in the blockchain technology. This thesis points to the importance of considering the trilemma, stating that blockchain can be two of three things; scalable, decentralised, secure. Further, Greenspan’s criteria are applied in order to recognise the value of blockchain. These criteria together with the trilemma and understanding blockchain’s placement in the hype cycle, are of value when implementing blockchain. The study shows that blockchain technology is at an early stage and questions remain regarding future business use. Scalability solutions are both technical and case specific and it is found that future solutions for scaling blockchain are emerging.