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Press Release

Blockchain is becoming more important in the energy market

According to a survey by ESMT Berlin and the startup Grid Singularity, blockchain in the energy sector will continue to gain in importance.

More than 500 participants of the EventHorizon 2017, a global conference on blockchain in the energy market, were asked to participate in the survey. Blockchain uses a continuously expandable list of records associated with transactions using cryptographic techniques.

About 80 percent of the participants expect blockchain-based business models to be realized over the next one to three years. They assume that process costs could be reduced between 20 and 60 percent. More than half can also imagine reduced network costs through blockchain. The share of peer-to-peer trading is expected to be less than 20 percent. The role of the regulator is seen as a certifier of smart contracts.

"The survey shows that blockchain holds a lot of potential and can make a significant contribution to the digitization and decentralization of the energy market," commented Christoph Burger, Senior Associate Dean of Executive Education at ESMT. "The next few years will show whether the potential is under- or over-estimated, and to what extent additional regulation is necessary or avoidable."

EventHorizon 2017 was initiated by the blockchain Startup Grid Singularity in Vienna earlier this year. The summit brought together more than 500 participants from 36 countries, including policy makers and business leaders, as well as representatives of startups and established market leaders. Together, participants discussed how blockchain and other decentralized transaction technologies can influence the organization of our energy system.

 

About ESMT Berlin

ESMT Berlin is the highest-ranked business school in Germany and Top 10 in Europe. Founded by 25 leading global companies, ESMT offers master’s, MBA, and PhD programs, as well as executive education on its campus in Berlin, in locations around the world, online, and in online blended format. Focusing on leadership, innovation, and analytics, its diverse faculty publishes outstanding research in top academic journals. Additionally, the international business school provides an interdisciplinary platform for discourse between politics, business, and academia. ESMT is a non-profit private institution of higher education, accredited by AACSB, AMBA, EQUIS, and FIBAA, and is committed to diversity, equity, and inclusion across all its activities and communities.