Blockchain Technology: Energy Efficiency and Ethical Compliance

Authors

  • Yudi Fernando
  • Rubakanthan Saravannan Universiti Malaysia Pahang

DOI:

https://doi.org/10.15282/jgi.4.2.2021.5872

Keywords:

energy efficiency, blockchain, renewable energy, ethical compliance, conceptual paper

Abstract

Blockchain technology has the ability to disrupt almost every industry due to its ability to create a decentralized tamper-proof ledger network and carry out transactions without the need of a trusted third party intermediary. One of the major drawback of blockchain technology is the energy consumption surrounding its application. The problem has been discussed extensively, with proposals focusing on strengthening its consensus protocol and also integrating renewable energy sources to minimize its carbon footprint. To boost adaptability of blockchain in all sectors, the technology itself needs to look for less energy-intensive alternatives to boost its ethical and industrial compliance. As the energy sector is currently undergoing a revamp from its age-long one-way power network towards a decentralized grid system with distributed generation and storage. Adoption of blockchain technology must work hand in hand with the energy industry in order to make itself energy efficient and competitive in the long term.

References

Abdullah, W. S. W., Osman, M., Ab Kadir, M. Z. A., & Verayiah, R. (2019). The potential and status of renewable energy development in Malaysia. Energies, 12(12), 2437.
Adilla, F. “Government Setup Special Taskforce to Study Blockchain Potential.” NST Online, 1 Mar. 2018, www.nst.com.my/business/2018/03/340273/government-setup-special-taskforce-study-blockchain-potential.
Andoni, M., Robu, V., Flynn, D., Abram, S., Geach, D., Jenkins, D., McCallum, P., & Peacock, A. (2019). Blockchain technology in the energy sector: A systematic review of challenges and opportunities. Renewable and Sustainable Energy Reviews, 100, 143-174.
Aziz, A. (2019), “Govt to Liberalise Power Industry.” The Edge Markets, 20 Sept. 2019, www.theedgemarkets.com/article/govt-liberalise-power-industry.
Clark, E., C., & Greenley, L.,H. (2019). Bitcoin, Blockchain, and the Energy Sector, Independently published [August 9, 2019]. Retrieved from https://www.hsdl.org/?view&did=828211
Balasubramanian, S., Shukla, V., Sethi, J. S., Islam, N., & Saloum, R. A readiness assessment framework for Blockchain adoption: A healthcare case study. Technological Forecasting and Social Change, 165, 120536.
Baraniuk, C. (2019, July 3). Bitcoin's energy consumption 'equals that of Switzerland'. Retrieved from https://www.bbc.com/news/technology-48853230
Bumblauskas, D., Mann, A., Dugan, B., & Rittmer, J. (2020). A blockchain use case in food distribution: Do you know where your food has been?. International Journal of Information Management, 52, 102008.
CCN.com (2020), “Spanish Bitcoin Miner Plans 300 MW Solar Plant with Panels from China.” CCN.com, 24 Jan. 2020, www.ccn.com/spanish-bitcoin-miner-putting-up-a-300-mw-solar-plant-for-its-mining-operations/.
Cuthbertson, A (2019). “Bitcoin Uses More Energy than the Whole of Switzerland – and It's Getting Worse.” The Independent, Independent Digital News and Media, 5 July 2019, www.independent.co.uk/life-style/gadgets-and-tech/news/bitcoin-energy-switzerland-cryptocurrency-mining-a8989816.html.
Cloudscene (2018). “The Data Center Sector Is Driving Renewable Energy Adoption.” Data Center News, 12 Jan. 2018, cloudscene.com/news/2018/01/data-center-renewable-energy/.
Eurelectric Report (2018), “Energy Blockchain-Project Featured in EURELECTRIC Report.” Center for Secure Energy Informatics, 4 May 2018, cdn.eurelectric.org/media/3115/paper1_blockchain_eurelectric-h-CB8D6920.pdf.
Fernando, Y., Rozuar, N. H. M., & Mergeresa, F. (2021), The blockchain-enabled technology and carbon performance: Insights from early adopters. Technology in Society, 64, 101507.
Fernando, Y., & Wulansari, P. (2020). Perceived understanding of supply chain integration, communication and teamwork competency in the global manufacturing companies. European Journal of Management and Business Economics.
Fernando, Y., Abideen, A. Z., & Shaharudin, M. S. (2020). The nexus of information sharing, technology capability and inventory efficiency. Journal of Global Operations and Strategic Sourcing.
Fernando, Y., Darun, M. R., Al-haimi, B., Ibrahim, D. N., Tieman, M., & Mohamad, F. (2020a), Role of Smart Contracts in Halal Supply Chain Management. In Encyclopedia of Organizational Knowledge, Administration, and Technology (pp. 2497-2504). IGI Global.
Fernando, Y., Darun, M. R., Abideen, A. Z., Ibrahim, D. N., Tieman, M., & Mohamad, F. (2020b), Adoption of Blockchain Technology to Improve Integrity of Halal Supply Chain Management. In Encyclopedia of Organizational Knowledge, Administration, and Technology (pp. 2488-2496). IGI Global.
Gielen, D., Boshell, F., Saygin, D., Bazilian, M. D., Wagner, N., & Gorini, R. (2019). The role of renewable energy in the global energy transformation. Energy Strategy Reviews, 24, 38-50.
Gomez, O., C. (20198), “'Deregulate Renewables, Power Generation'.” The Edge Markets, 19 Aug. 2018, www.theedgemarkets.com/article/deregulate-renewables-power-generation.
Irena (2016), Letting in the Light: How solar photovoltaics will revolutionise the electricity system. (2016). Retrieved from https://www.irena.org/publications/2016/Jun/Letting-in-the-Light-How-solar-photovoltaics-will-revolutionise-the-electricity-system
IEEE (2019), IEEE Spectrum: Technology, Engineering, and Science News, spectrum.ieee.org/computing/networks/ethereum-plans-to-cut-its-absurd-energy-consumption-by-99-percent.
Judge, P. (2020), “Swiss Data Center Efficiency Label Launched at WEF.” DCD, 6 Feb. 2020, www.datacenterdynamics.com/en/news/swiss-data-center-efficiency-label-launched-wef/.
Khatoon, A., Verma, P., Southernwood, J., Massey, B., & Corcoran, P. (2019). Blockchain in Energy Efficiency: Potential Applications and Benefits. Energies, 12(17), 3317. doi: 10.3390/en12173317
Lohmer, J., & Lasch, R. (2020). Blockchain in operations management and manufacturing: Potential and barriers. Computers & Industrial Engineering, 149, 106789.
Mohter, N., & Fernando, Y. (2020). Corporate Governance and Low Carbon Supply Chains: Why Integrity Matters?. Journal of Governance and Integrity, 3(2), 39-45.
Mrcy, P.L. (2019). “Why Isn't Ethereum on PoS Already?” Medium, IBBC.io, 8 Jan. 2019, medium.com/ibbc-io/the-beautiful-complexity-of-pos-338cfc340eaa.
MiGHT (2019), “Malaysia Blockchain & Distributed Ledger (DLT) Outlook 2019.” MIGHT Portal, 30 Sept. 2019, www.might.org.my/malaysia-blockchain-distributed-ledger-dlt-outlook-2019/.
Monrat, A. A., Schelén, O., & Andersson, K. (2019). A survey of blockchain from the perspectives of applications, challenges, and opportunities. IEEE Access, 7, 117134-117151.
Naina, L. M., Fernando, Y., & Shaharudin, M. S. (2019). Extended Eco-Efficient Supply Chain Integration Management Model: A Research Note. Journal of Governance and Integrity, 3(1), 69-76.
PricewaterhouseCoopers. (2016). Blockchain-an opportunity for energy producers and consumers? Retrieved from https://www.pwc.com/gx/en/industries/energy-utilities-resources/publications/opportunity-for-energy-producers.html
Sharvini, S. R., Noor, Z. Z., Chong, C. S., Stringer, L. C., & Yusuf, R. O. (2018). Energy consumption trends and their linkages with renewable energy policies in East and Southeast Asian countries: Challenges and opportunities. Sustainable Environment Research, 28(6), 257-266.
SEDA (2020), Renewable Energy Malaysia. Retrieved from http://www.seda.gov.my/reportal/
Tan, C. S., Maragatham, K., & Leong, Y. P. (2013). Electricity energy outlook in Malaysia. In IOP Conference Series: Earth and Environmental Science, 16(1), p. 012126.
Truby, J. (2018). Decarbonizing Bitcoin: Law and policy choices for reducing the energy consumption of Blockchain technologies and digital currencies. Energy research & social science, 44, 399-410.
Shaharudin, M. S., Fernando, Y., Ahmed, E. R., & Shahudin, F. (2020). Environmental NGOs Involvement in Dismantling Illegal Plastic Recycling Factory Operations in Malaysia. Journal of Governance and Integrity, 4(1), 29-36.
Wu, J., & Tran, N. (2018). Application of Blockchain Technology in Sustainable Energy Systems: An Overview. Sustainability, 10(9), 3067. doi: 10.3390/su10093067
Yaga, D., Mell, P., Roby, N., & Scarfone, K. (2018). NISTIR 8202 Blockchain Technology Overview. National Institute of Standards and Technology. Recuperado de: https://nvlpubs. nist. gov/nistpubs/ir/2018/NIST. IR, 8202.
Zhang, S., & Lee, J. H. (2020). Analysis of the main consensus protocols of blockchain. ICT express, 6(2), 93-97.
Zheng, Y., & Boh, W.F. (2021), Value Drivers of Blockchain Technology: A Case Study of Blockchain-Enabled Online Community, Telematics and Informatics, doi: https://doi.org/10.1016/j.tele.2021.101563

Downloads

Published

2021-03-09

How to Cite

Fernando, Y., & Saravannan, R. (2021). Blockchain Technology: Energy Efficiency and Ethical Compliance. Journal of Governance and Integrity, 4(2), 88–95. https://doi.org/10.15282/jgi.4.2.2021.5872

Issue

Section

JGI Vol. 4, Issue 2, July 2021