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Siemens invests in electricity trade for the blockchain

German technological conglomerate Siemens announced its intention to invest in LO3 Energy, an American start-up focused on creating smart networks based on blockchain technology for local energy trading.

LO3 and Siemens merged at the end of 2016 to build a local intelligent network in Brooklyn. The LO3 system allows you to buy and sell energy - for example, derived from solar panels on the roof - to your neighbors or anyone who wants to buy it.

LO3 users install a high-resolution device that can measure electricity consumption at different times of the day. They also receive an application that allows them to establish requests for the purchase and sale of certain types of electricity, such as solar energy or wind power.

LO3 receives revenue from the transaction commission, and also wants to use all these user data to connect local power grids to larger ones.

In addition, LO3 intends to use second-generation block contracts and smart contracts from Etherium to automate transactions.

Chapter LO3 Lawrence Orsini emphasizes the particular importance of decentralization, which will help avoid the manipulation of energy markets, which are practiced by large companies. As an example, he leads the Enron corporation - an American energy company that went bankrupt in 2001 after revealing massive financial fraud in it. Orsini also noted that the LO3 system will allow consumers to partially control the energy market.

Source: bits.media