Blockchain is all the buzz these days and the technology has been widely discussed in recent months, especially as the value of bitcoin has risen, plunged and risen again. Blockchain technology is still in infancy, and companies across the globe are looking at it with intrigue for its potential value, but also with some skepticism and suspicion. On the surface, blockchain provides an immutable, incorruptible resource for tracking data and ensuring accountability. Yet, a lack of regulation means companies can create blockchain-based energy management platforms and retain them independently.
As a result, Facilities Managers are forced to choose between keeping operations in-house or outsourcing another system. Moreover, the lack of regulation means systems can be held to different standards, and while they use the same technology, little if any, oversight presents an added risk. That being said, the use of blockchain-based energy management could be the solution the facilities management industry has been looking for over the years.
The Limitations of Traditional Energy Management
Last year, the U.S. Senate took up the issue of using blockchain-based energy management and considered regulations to ensure the technology’s proper use, explains Energy Manager Today. The hearing was merely a means of determining the legitimacy of utilizing blockchain-based energy management, a key concern since the technology itself does use more energy than traditional systems. However, new advances in technology will always have a spike in energy use after implementation, which results in increased energy use. It is the long-term benefits that prove its value and overcome its limits.
What Is Blockchain-Based Energy Management?
As explained by Green Tech Media, blockchain-based energy management means utilizing the ledger technology to track data collected from facility management assets.
For example, data gathered by sensors connected to the Internet of Things could be entered into the system, providing an incorruptible resource for use throughout a company. This same advantage can be further used to show how energy savings impact an organization, also providing overall transparency in the energy industry. The energy industry does have a significant problem with transparency and sustainability. The most straightforward changes could have a disastrous effect on sustainability, and consumers want to know more about these changes. Implementing blockchain could eliminate all uncertainty in question regarding the legitimacy of any improvements.
Additional Benefits of Blockchain-Based Systems
Using blockchain-based systems will also have additional impacts on facilities management. These may include:
- Improved accountability through smart contracts, says Michael Matthews and Todd White of Buildings.com.
- Increased visibility into work order management.
- Streamlined payment processing.
- Warranty tracking.
- Managing both direct and indirect cost avoidance.
Recommission Your Facilities with Blockchain-Ready Technology
The use of blockchain-based energy management is still an application of the technology that is not likely to make an impact in the next year or two. However, Facilities Managers that take the time to understand blockchain technology today can begin the process of preparing for a blockchain-driven future, such as implementing connected systems to track and gather data now. Start tracking the right data to plan for blockchain by contacting ENTOUCH online or calling 1-800-820-3511.