Why the Energy Sector Meets the Conditions for Decentralization

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The following piece on decentralizing the energy sector was written by Richard Lohwasser, who holds a PhD in energy economics and is the CEO of Lition. He was previously a strategy consultant for McKinsey and director of Vattenfall. Lohwasser was also Managing Director of German Operations at ExtraEnergie. Decentralization. Digital autonomy. Circumventing corporate strangleholds on information. A new, democratized internet. The blockchain revolution has inspired a wave of ideological fervor around technological advancement that is unprecedented in the mild-mannered, minimalist world of the Silicon Valley tech giants. Crypto gurus, emboldened by new-found fortunes, decry centralized data systems, and herald an internet of no gods, no masters. Also read: Markets Update: BCH Rallies, XRP Nears ETH Market Cap The Democratization of an Industry It makes sense. When Facebook is listening to your conversations and tailoring ad content accordingly, and Equifax is losing credit card and social security numbers by the millions, burning the old house to the ground seems like a plausible solution. Blockchain startups left and right have latched onto this ethos of disruption, vowing to fundamentally redefine established industries from the bottom up. The purveying sentiment seems to be “Decentralize everything.” While breaking the grip of old guard institutions is a great rallying cry, there are a few important question to ask before trying to democratize an industry. Asking the Right Questions About Decentralization Why was the industry centralized in the first place? Industries like banking originally centralized to bring stability, security, and ease of use to consumers. While cryptocurrencies offer their…
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