Smart contracts have the potential to revolutionise the way energy is traded by reducing the role of intermediaries, transaction costs and the complexity of the legal documentation and negotiations while optimising financial flows. Together with the ETH juniors, the student consultancy of ETH Zurich, we developed a smart contract in the form of a completely cryptographic implementation of a bilateral power contract executed using the Ethereum blockchain. Based on the latest blockchain development technology, the smart contract completely eliminates the need for e-mail and telephone communication, documents and fiat currencies.
A partnership with disruptive energy
The pilot project for the practical application of the new smart contract was launched on 29 October and is being carried out in cooperation with our trading partner Vitus Commodities – a trading company based in Turkey that specialises in energy trading across Europe. With this initial step in the field of blockchain technology, our goal is to take advantage of the benefits of this technology for our partners in the energy business and demonstrate a viable practical application for the Ethereum blockchain.