Embed Size (px)
Citation preview
© PONTON GmbH
Blockchain in Energy Trading
Michael Merz - PONTON GmbH
© PONTON GmbH
Why Blockchain @ PONTON…
• Peronal interest: Crypto Currencies
• PONTON: B2B-Integration between Unternehmen (Ponton X/P)
• Annoyed by Hype already in 2015, April 2016: „Brooklyn Microgrid“
• May 2016: Book chapter, available developers, focus on business case „trading“
June 2016: Start on PONTON Blockchain Team
2
© PONTON GmbH
Blockchain in the Press
3
© PONTON GmbH
Data Exchange Today(E.g. Ponton X/P, EFET Box, suppluer switching, …)
Applications
P2P Communication
Appli-cations
Appli-cationsAppli-
cations Appli-cations
Appli-cations
Appli-cations
Appli-cations
Appli-cations
CommModule
CommModule
CommModule
CommModule
CommModule Comm
ModuleComm
Module
CommModule
© PONTON GmbH
Process Platfors today(E.g. Exchanges, Uber, Airbnb, Transaction Systems, …)
5
Appli-cations
Appli-cationsAppli-
cations Appli-cations
Appli-cations
Appli-cations
Appli-cations
Appli-cations
Clients
Prozess-PlattformServer
© PONTON GmbH
Data Exchange over the Blockchain
6
Nodes
Appli-cations
Appli-cationsAppli-
cations Appli-cations
Appli-cations
Appli-cations
Appli-cations
Appli-cations
Applications
Standardisation
100% Availability
Low cost of operation
© PONTON GmbH
Data Exchange over the Blockchain
7
Nodes
Appli-cations
Appli-cationsAppli-
cations Appli-cations
Appli-cations
Appli-cations
Appli-cations
Appli-cations
Applications
Transaction
TT TT
TT TT T
T TT
TT TT
TT TT
TT TT
T TTT
TTData Communication
Data Replication
Synchronisationof Nodes
© PONTON GmbH
Data Exchange over the Blockchain(Validation Phase)
8
Nodes
Appli-cations
Appli-cationsAppli-
cations Appli-cations
Appli-cations
Appli-cations
Appli-cations
Appli-cations
Applications
ValidatorOK?
© PONTON GmbH
Data Exchange over the Blockchain(Validation Phase)
9
Nodes
Appli-cations
Appli-cationsAppli-
cations Appli-cations
Appli-cations
Appli-cations
Appli-cations
Appli-cations
Applications
ValidatorOK!
Trustlessness
© PONTON GmbH
Data Exchange over the Blockchain(communication history stored in a sequence of blocks)
10
Nodes
Appli-cations
Appli-cationsAppli-
cations Appli-cations
Appli-cations
Appli-cations
Appli-cations
Appli-cations
Applications
„Immutability“CryptographicProvability
© PONTON GmbH
Value Exchange over the Blockchain(Option 1: Asset Transfer between User Accounts)
11
Nodes
Appli-cations
Appli-cationsAppli-
cations Appli-cations
Appli-cations
Appli-cations
Appli-cations
Appli-cations
Applications
€
User Accounts
© PONTON GmbH
Code Execution through the Blockchain(Option 2: Smart Contracts)
12
Nodes
Appli-cations
Appli-cationsAppli-
cations Appli-cations
Appli-cations
Appli-cations
Appli-cations
Appli-cations
Applications
Smart Contract
Smart Contract: “Appartment in Mallorca”
New Initialise
AvailableWeeks
Owner:Enter available weeks
Receive1000 €
Forward amount to owner, create access code
Send access code to tenant & smart lock
EnterAppartment
No cancellation accepted from this time on
Com-plaint
Involve Agency
. . .
© PONTON GmbH
Eigenschaften der Blockchain:
• Blockchain is a communication mechanism• Blockchain is cheap• Blockchain is highly available• Blockchain is neutral terrain, „trust in technology, not people“• Blockchain requires standardisation and facilitates standardisation• Blockchain is a data store• Blockchain nodes synchronise with one another to achieve distributed set of
data• Blockchain data is only stored if a majority of nodes agrees that the content of a
block is vaild.• Blockchain uses cryptogarphic functions to sign transactions and to ensure, that
content is authentic• Blockchain on top of classic security measures provides higher security against
cyber attacks• Option 1: Asset transfer (token currency, notarisation of asset transfers, …)• Option 2: Smart Contracts:
- Execute program code (event driven)- Cannot be stopped by a third party, smart contracts can only stop themselves- Are not contracts and also not smart- Can exchange payments as human blockchain account holders do
13
© PONTON GmbH
Scandal 2016: The DAO, the Hack, the Fork… or what happened last summer
- DAO (Distributed Autonomous Organisation)
- A virtual organisation that consists of one or more smart contracts
- A DAO is not a legal entity, is not owned by a legal entity, does not
- require trust in legal entities.
- „The DAO“
- Is an investment vehicle, which makes fond managers obsolete. Investors transfer money to The DAO and decide thgether withother investors on which start-up to support financially.
- Was put on the Ethereum blockchain in May 2016
- Collected 150 Mio. USD within a few weeks from anonymous investors.
- The Hack
- Someone exploited a flaw in the code of The DOW and parked 50 Mio. USD in a „deadend“
- The Fork
- The Ethereum blockchain was set back in time by ca. 2 Months, to make The Hack undone.
- This was a break with the „immutability“ feature
- Chaos, disputes, split of the currency „Ether“ in „Ether“ and „Ether Classic“
14
© PONTON GmbH
OK, one more slide …
What else is Blockchain?
• „Skynet“?
• Cheap?
• A buzz-word that increases a start-upvaluation by 10 Mio. Euro
• A disruption?
• A technical solution –but for which requirement???
• Evil – because it has been invented asa part of bitcoin?
• The next step in achieving equalaccess rights for small marketparticipants?
• Something that is difficult to explainon an elevator ride?
• Immature?
Further blockchain related terms:
• Block time
• Permissionless vs. permissionedBlockchain
• Trusted vs. trustless
• „Proof of Work“ vs. „Proof of Stake“
• Byzantine fault tolerance
• Mining, tips & halving
15
© PONTON GmbH
Scenario 2030: Hierarchical Markets for the Balancing of local Grids
16
Local Market
€E-
Regional Market
ResidualLoad
Provider
€
E-
Area
Village
DSO Grid
Grid-wide Market
ResidualLoad
Provider
€
E-
ResidualLoad
Provider
€
E-
Wh
ole
sale
Mar
ket
Trades
Balance
© PONTON GmbH
Vertical Focus (energy)
The „Blockchain & Energie“ Space
17
Grid Control- TSO vs. DSO
P2P- Wholesale
market
Flexibility Market - TSO / DSO Grid
Settlement- Financial- Physical
P2P Trading - Microgrid- Local grid
Internet of Things(Lift device data into the digital sphere)
Horizontal Technical Features & ChallengesAccess / Identity Management / Archive historic blocks
Load / Performance / Stability / Security / Privacy
© PONTON GmbH
Project EnerchainThe world‘s wholesale first energy trade over the blockchain
18
© PONTON GmbH
Project Enerchain25 Participants (2 logos hidden)
19
© PONTON GmbH
Marketplace(via Blockchain)
Agent: Battery-storage
Agent: Exchange
DemandSupply
€
Battery
API
Agent: Electro-lyser
API
Agent: ElectricVehicle
API
24h50 €/MWh
0 €/MWh
Battery
100%
0%
Power Price(front hour)
Electrolyser100%
50%
ElectricVehicle
100%
0%
1
2
3
4
1
2
3
4
. . .
OtherMarket Price Index
OfficeBuilding(heating)
100%
0%
5
Agent: OfficeBuilding
5
Local Market for Flexibility basedon Blockchain Technology
© PONTON GmbH
NEW 4.0 – „Norddeutsche Energiewende“
21
Region Hamburg/Schleswig Holstein, > 50% RES share, develop Smart Market for Flex.
© PONTON GmbH
GridChain –TSO / DSO Process Synchronisation
22
TSO
DSO DSO DSO DSO
Gen. Gen. Gen. Gen. Gen. Gen. Gen.
Aggregator
Supplier
BGR
TSO requests balancing power from aggregators, which in turn activate load at local generators. DSOs are informed after the fact.
CHP Gen.Gen.
© PONTON GmbH
Why use Blockchain Technology for DSO / TSO Integration?
• Why Blockchain?
– Low cost technology
– De-facto 100% availability (Bitcoin as a long-term proof of concept of 8 years)
– 1:N communication
– Integration of instantaneous settlement
Combined, these features enable new types of software applications for the collaboration of market partners.
© PONTON GmbH
GridChain –TSO / DSO Interprocess Communication using theBlockchain
24
TSO
DSO DSO DSO DSO
Gen. Gen. Gen. Gen. Gen. Gen. Gen. Gen.
Aggregator
Supplier
BGR
. . .
© PONTON GmbH
The Blockchain is used as a Data Storage and Communication Layer
. . .
DSO
RRARRE
DSORRARRE
DSO
RRARRE
DSO
RRA
RRE
1 Sek. 1 Sek. 1 Sek. 1 Sek. 1 Sek.
© PONTON GmbH
Simulator
The Blockchain is used as a Data Storage and Communication Layer
Blockchain
TSO
RR
A1
RR
A2
RR
A3
RR
E1
RR
E2
RR
E3
RR
E4
RR
E5
RR
E6
DSO
1
RR
E7
RR
E8
Lief
1
DSO
2
RR
E9
RR
E10
DSO
3
RR
E11
RR
E12
Lief
2
Lief
3
Lief
4
NodeCloud
NodeCloud
NodeInhouse
NodeCloud
NodeInhoue
NodeCloud
ProzessVisu-alisie-rung
Blockchain
1 Prozess
TSO
RR
A1
RR
A2
RR
A3
RR
E1
RR
E2
RR
E3
RR
E4
RR
E5
RR
E6
DSO
1
RR
E7
RR
E8
Lief
1
DSO
2
RR
E9
RR
E10
DSO
3
RR
E11
RR
E12
Lief
2
Lief
3
Lief
4
Node NodeCloud
ProzessVisu-alisie-rung
Sim
ula
tio
n M
od
eP
rod
uct
ion
Mo
de
© PONTON GmbH
Where is the Business Case for Blockchain?
• High availability at reduced cost (operation & transaction)
• Disintermediate
• Integrate token currency
• Allow for minimal transaction volumes through reduced transaction cost
• Directly link people to people / assets to assets
• Trustlessness
• Standardisation effect
„So, again, where is the business case in usingblockchain technology?“It is the mix, stupid!
27
© PONTON GmbH
Why is it so difficult to „Think Blockchain“?
Classic Approach
Business Case
SoftwareDesign / Spec.
Software Implementation
Operation
BlockchainTechnology
Blockchain(e.g. Ethereum)
?
?
Blockchain Approach
This won‘t work!
Blockchain-baseddesign is a permanent
elevator ride
© PONTON GmbH
PONTON / Blockchain Hall of FameFind more information here: http://enerchain.ponton.de
plus projects under NDA…
