By IndraStra Global News Team
On August 9, 2019, U.S. Congressional Research Service (CRS) released a report detailing the potential uses for blockchain in the American energy sector. This report is part of a suite of CRS products* on cryptocurrencies and the underlying technology, distributed ledger technology, and blockchain.
In this report, the authors explained how cryptocurrency is “mined,” where mining activity is concentrated, how some states and utilities are responding to localized increases in energy demand from Bitcoin mining facilities, and potential considerations for Congress.
Considerations for Congress include potential policy options to address energy conservation and energy efficiency standards as well as options for integrating blockchain technology in the energy sector.
Also, the report cites a survey conducted by the Electric Power Research Institute (EPRI), in which 77% of respondents said that the energy sector lacks appropriate standards for implementing blockchain solutions. This lends some insight and credence to the facts — which claims — releasing a blockchain-based energy marketplace services comes with potential issues related to "distribution control" as well as "cyber-security".
Kindly, do note, in April 2019, the U.S. Department of Energy announced a US$ 4.8 million funding grant for universities to research and develop blockchain use cases for the energy sector. Projects under the initiative are aimed at achieving various objectives, including the development of early-stage technologies for more affordable domestic energy resources and improved electric grids, the department said at that time.
* CRS Products on Digital Currencies and Related Technology
- CRS In Focus IF10810, Blockchain and International Trade, by Rachel F. Fefer.
- CRS In Focus IF10824, Financial Innovation: “Cryptocurrencies,” by David W. Perkins.
- CRS In Focus IF10825, Digital Currencies: Sanctions Evasion Risks, by Rebecca M. Nelson and Liana W. Rosen.
- CRS In Focus IF11004, Financial Innovation: Digital Assets and Initial Coin Offerings, by Eva Su.
- CRS Legal Sidebar WSLG1856, For First Time, FinCEN Imposes Penalty on Foreign-Based Virtual Currency Exchange for Violations of Anti-Money Laundering Laws, by M. Maureen Murphy.
- CRS Report R43339, Bitcoin: Questions, Answers, and Analysis of Legal Issues, by Edward V. Murphy and M. Maureen Murphy.
- CRS Report R45116, Blockchain: Background and Policy Issues, by Chris Jaikaran.
- CRS Report R45427, Cryptocurrency: The Economics of Money and Selected Policy Issues, by David W. Perkins.
- CRS Report R45440, International Approaches to Digital Currencies, by Rebecca M. Nelson.
- CRS Report R45664, Virtual Currencies and Money Laundering: Legal Background, Enforcement Actions, and Legislative Proposals, by Jay B. Sykes and Nicole Vanatko.
- CRS Testimony TE10025, Beyond Bitcoin: Emerging Applications for Blockchain Technology, by Chris Jaikaran.
- CRS Testimony TE10034, Examining Regulatory Frameworks for Digital Currencies and Blockchain, by Rebecca M. Nelson.
- CRS Video WVB00200, Understanding Blockchain Technology and Its Policy Implications, by Chris Jaikaran.