DECENT founder: Application of blockchain in the field of data energy

DECENT is a European-based company founded by Matej Michalko, who has held various management positions in the blockchain and information technology fields. He recently spoke at an energy conference about the application of blockchain technology in the energy sector and the best solutions.

Matej Michalko spoke at the conference about DECENT’s mission to revolutionize data publishing using blockchain technology. Despite the fact that DECENT is focused on publishing digital content such as text, music, software and video content, DECENT is also a blockchain solution provider in the energy sector.

About blockchain

1. Immutable Timestamp Data Store

2. Secured from Data Tampering

3. Decentralized Trust

4. Cryptography intensive

5. Symmetric & Asymmetric Cryptography (1.- AES 2. -Shamir Secret Sharing 3.- Public and Private Keys)  

6. Key splitting and Off-chain Data Distribution

7. Transactions recorded in Blockchain

Blockchain is a tamper-proof database that allows for due diligence of all transactions within the system. It is now widely used in many fields, including energy.

1. When using blockchain for data publishing, one of the key points is encryption technology. In DECENT's solution, it uses a combination of symmetric and asymmetric encryption technology. It is called AES, Shamir key sharing, public key and private key. Key splitting enables scalable user rights management and data publishing from the side chain, in a separate layer, and encrypted.

2. Driven by the growth of renewable energy, energy markets are becoming more decentralized, bringing with it issues of data authenticity, data privacy and the ability to obtain real-time information in a highly regulated industry. Regulators’ interest in grid stability has led to unprecedentedly complex rules that hinder new market participants. Compliance is relatively technically and financially demanding. To address this, DECENT is redefining the way market participants communicate. In essence, by facilitating a range of energy industry services, DECENT is reducing market costs and complexity.

3. The main business model of the IT systems currently in use is based on data monetization. One of the key challenges here is the trust issue, that third parties have access to your data. Any compromise in this aspect of the system will reduce the trust in the authenticity of the data, leading to data corruption or leakage. The second problem is the limited interoperability and high integration costs. Blockchain technology can provide the opposite, a trustless model, where the authenticity of the data, as a key feature of the blockchain, can be verified in real time. The data owner can control the access rights to the data, not the service provider. In addition, a blockchain platform can promote the development of applications that take advantage of the interoperability of the system at a low cost.

Application of blockchain in the energy sector

1. Renewable Energy

2. Decentralization

3. Data Authenticity

4. Privacy

5. Real Time information

6. Grid Stability

7. More Complex Regulation

Key use cases for blockchain data in the energy sector :

1. Smart meters data distribution & management

2. Due diligence of power plants

3. P2P Energy Exchange (Peer-to-Peer Energy Exchange, the most researched one at present)

Matej Michalko used the power industry as an example to illustrate practical applications in the energy sector.

Smart meters allow for the collection of energy consumption data at different levels of granularity, which is sensitive data. Blockchain technology ensures a secure and trusted way of managing and publishing data. According to EU regulations, all EU member states must deploy smart meters to varying degrees by 2020. This is an important market growth.

Many power plants have investors, but due diligence needs to be performed on them. Blockchain technology offers a huge help in this area. Past data is time-stamped, encrypted and stored in an unchangeable database, which is audit-ready. One of our customers produces plug-and-play hardware devices that seamlessly connect to existing power plant data management infrastructure. The most researched area at the moment is peer-to-peer energy exchange. The idea is that privately produced energy (e.g. solar panels installed on the roof, small hydro or wind power generation, etc.) is sold directly to users through an asset transfer based on blockchain technology. Despite the fact that there are already many players in this field, peer-to-peer energy exchange is still based on regulatory policies and legal provisions in different countries. Now, let me describe the EU policy.

Horizon 2020

Horizon 2020 is the eighth edition of the framework programme for funding research, technological development and innovation. The name of the programme has been changed to the "Framework Programme for Research and Innovation". The framework programme is implemented by the European Commission (the executive arm of the European Union). Horizon 2020 provides funding for research and innovation through open and competitive tendering projects. Legal entities from any country are entitled to submit project proposals. Participants from outside the EU are particularly encouraged.

The energy challenge consists of approximately seven specific goals and research areas:

1. Reduce energy consumption and carbon emissions

2. Low-cost, low-carbon electricity supply

3. Alternative Fuels and Mobile Energy

4. A single, smart European grid

5. New knowledge and new technologies

6. Strong decision-making and public participation

7. Market adoption of innovations in energy and communication technologies

A budget of 5.9 billion euros has been allocated for non-nuclear energy research in the period 2014-2020. The Energy Challenge focuses on energy efficiency, low carbon technologies and smart cities & communities. Blockchain, one of the most significant innovations of the past, has an important place in the Energy Challenge.

DECENT is currently involved in a research project as part of the Horizon 2020 Energy Challenge. Implemented in Slovakia, this research project focuses on forecasting and distributing data on energy production, consumption and load. The project combines advanced AI technologies, mainly deep learning and artificial neural networks, with blockchain data management. The DECENT Foundation is one of the software solution providers. The project is scheduled to be completed in 2018.