Encouraging regulatory compliance and transparency in the energy industry can boost with the incorporation of blockchain.
Today’s energy companies have many opportunities to apply modern technologies. Selecting the right set of technologies can empower energy companies to proceed quickly through the transformational phase and arrive at intelligent, efficient, and advanced capabilities that contribute to regulatory compliance.
Blockchain seems to carry a lot of potential in optimizing regulatory compliance in energy companies. The suitability of blockchain in boosting regulatory compliance for the energy industry is highlighted.
• Facilitating Communications with Regulators
Energy companies can use blockchain to share information with regulators. Energy companies are expected to collect and share enormous data that regulators analyze to prove compliance. When this data is transferred through blockchain, it becomes convenient. Besides reducing the burden of reporting, blockchain protects sensitive data. Thus, blockchain can support energy companies manage compliance and regulatory reporting.
• Comprehensive and Connected Supply Chains
A blockchain platform can allow highly dispersed energy industry operations to become integrated. The processes in any energy company are scattered and involve multiple players. An integrated view of the entire energy supply chain can become a reality with blockchain.
• Secure and Transparent Transactions
Performing transactions through digital ledgers is highly
beneficial. For energy companies, such capabilities refer that energy transactions can become rapid and secure. As the transaction details are stored at a single location, and there is no interference from intermediaries, the need for reconciliation is also eliminated. Peer-to-peer energy transfers can be a significant beneficiary of blockchain-based transactions. All of these occur in improved regulatory performance.
As energy companies voyage disruptive technological interventions, evaluating and adopting blockchain can be a good move toward compliant operations.
