Chainlink Unveils Report on How Blockchain Can Impact Climate Change

By using high-quality climate and energy data, smart contract developers can build next-generation clean energy solutions.

By
Soumen Datta
on
April 22, 2022
Category:
DeFi

Technalia x Chainlink Report

Tecnalia and Chainlink Labs have teamed up to release a new report focusing on how blockchain technology can speed up the transition from fossil fuels to clean energy sources.

According to the April report entitled 'Managing Climate Change in the Energy Industry With Blockchains and Oracles,' smart contract developers can build next-generation clean energy solutions by having access to high-quality climate and energy data. In today's energy industry, the challenges are numerous, including keeping an increasingly distributed energy grid in balance and growing intermittent renewable energy production while demonstrating investment returns on clean energy projects. 

"During this period of major infrastructure and market transformation, utilities, service providers, and governments can use blockchain technology to digitize and assign value to clean energy investments and design fully automated incentive systems for participating in sustainable practices," said Jose Luis Elejalde, the energy, climate, and urban transition manager at Tecnalia.
Source

In the report, there are eight potential use cases of hybrid smart contracts to support the transition to clean energy, including:

  • Issuing carbon credits or consumer rewards when predefined energy objectives are met.
  • Tokenizing energy commodities and energy project cash flows can be used as collateral in various decentralized finance (DeFi) applications.
  • Using parametric energy conversion contracts to guarantee performance or uptime requirements of renewable energy installations with automatic settlements.

Several parametric insurance platforms have emerged to automate insurance assessment and payouts for agribusinesses and energy producers using weather data feeds and blockchain settlements powered by Oracle. For instance, with Arbol, an Ethereum-based climate risk solutions platform, energy businesses can take advantage of smart contracts, which allow them to hedge power demand and revenue fluctuations due to unexpected temperature fluctuations.

Temperatures are on the rise, and climates are becoming more volatile, so the use of high-quality data and enhanced transparency is increasingly essential for meeting clean energy standards and helping mitigate climate change. By using next-generation technologies, like blockchain and Oracle solutions, clean energy solutions can be managed and automated beyond their current capabilities.

What is Chainlink:

Chainlink is a decentralized oracle network that powers smart contracts. The network provides developers with an extensive collection of high-quality data sources and secure off-chain computations that aim to expand the capabilities of smart contracts by interacting with real-world data in a timely manner.

Find more about Chainlink here:

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What is Technalia:

Technalia is the largest center of applied and technological development in Spain and a benchmark in Europe. It is also a member of the Basque Research and Technology Alliance. With a vision to become agents of transformation of businesses and society to adapt to a changing future, the firm collaborates with companies and institutions to improve their economic productivity and quality of life and achieve sustainable growth.

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Soumen Datta

Soumen is an experienced writer with a background in Laser Physics. He has a passion for learning and is mainly interested in Defi, P2E gaming, and NFTs. His largest crypto holdings are BTC, ETH, SOL and DOT token.

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