The document discusses building a decentralized utility on the Ethereum blockchain. It provides an overview of Ethereum blockchain characteristics like being cryptographically secure, decentralized, able to store data and smart contracts. It describes benefits like simplicity, auditability, eliminating central authorities. It outlines different blockchain configurations like public, consortium, and private blockchains. It proposes connecting buyers and sellers with existing processes and integrating blockchain through a smart contract to pair construction data like load profiles. The document discusses trends in decentralization and validating concepts through an MVP to gain customer insights.

1. Building the
DECENTRALISED UTILITY
ON THE ETHEREUM BLOCKCHAIN
Ecosummit Berlin 2016

2. Ethereum Blockchain | An Overview
Cryptographically Secure
Uses tried and true public/ private signature
technology. Blockchain applies this technology
to create transactions that are impervious to
fraud and establishes a shared truth.
Decentralized
There are many replicas of the blockchain
database and no one participant can tamper it.
Consensus among majority participants is
needed to update the database.
Data & Smart Contract
The Ethereum blockchain can store both
data and Smart Contract (“Logic”) in the
blockchain
Immutable Ledger
Blockchain is a write-once database so it
records an immutable record of every
transaction that occurs.
The blockchain provides a trust framework that allows systems to be developed for actors to interact reliably and
securely

3. © 2016 consensys.net/enterprise
Blockchain Characteristics
Blockchain technology enables decentralized ledgers and secure value transfer mechanisms to provide significant infrastructure
and business processes for financial institutions.
Blockchain Characteristics
Decentralized
Programmable and
Secure
Immutable
Digitized
Benefits
● Simplicity and efficiency through use of digital identity of all actors in the system
● Auditability and improved access by storing coded references to documents and signatures
● Ability to trade physical assets through representative digital token of value with provenance
tracking
● Eliminates need for central approving authority for transaction and related latency
● No single point of failure or attack
● Reduced need for supervision and associated costs
● Reduced settlement risks and transaction costs
● Transactions are cryptographically signed using industry leading protocols like SHA-256
● Smart contracts enable data and process to co-exist reducing process redundancies and errors
● Support for multi-signature authentication and authorization helps further reduce fraud
● Immutable ledger for improved auditability and record keeping
● Reduced risk of accounting fraud
● Improved access and monitoring for regulators

4. © 2016 consensys.net/enterprise
Blockchain Configurations
There are three patterns of blockchain configurations to suit varied use case needs
● Trust-less due to consensus algorithm enabling anyone to join as a participant
● Must be expensive and difficult to publish a block to prevent fraud and spam (proof of work/mining)
● Examples include the public Ethereum and Bitcoin networks
● Digital currency or tokens (e.g. Ether) are used to pay to process transactions and smart contracts
Private
Blockchains
Consortium
Blockchains
Public
Blockchains
● Consortium blockchains are also called Semi-Private or Shared Permissioned Blockchains
● Only verified participants are allowed to publish blocks
● Optimized consensus algorithms enable much faster transaction times than public networks
● Does not require digital currency for transaction processing, though tokens may be valuable
● Private blockchains are also called Permissioned Blockchains or Sandboxes
● Designed for rapid application development and instant deployment
● Suited for single enterprise solutions that can be configured for high throughput
● Does not require digital currency for transaction processing, but tokens could be useful
DetailsConfiguration

5. Connecting buyer and seller with existing processes
Distribution Grid Operator
PV Load
Profile
Customer Load
Profile
LOCAL ENERGY
Direct Marketer
LOCAL ENERGY
Energy Supplier
Prosumer
SELLER
Local Business
BUYER

6. Trends driven by:
− Technology
− Economics
− Evolution in Regulation
− Efficiency
− Cost to serve
− Aspiration
− Society
But real consumer / prosumer
demands are uncertain…
Building the decentralised energy customer journey
Validate:
− Building an MVP
− Research and experiment
− Customer insights
− Evolving role of the utility
Locality
Renewable Energy
Sharing Economy
Decentralisation

7. Pairing Construct:
− Smart contract C2B
− Meter data
− Load profiles
− Prognostic info
Integrating blockchain in a decentralised energy solution
Prosumer
SELLER
Local Business
BUYER
Direct Marketer
Energy Supplier
Ethereum Blockchain
and Smart Contracts

8. The Ethereum blockchain is a transactional and business logic framework
Prosumer
SELLER
Ethereum Blockchain
and Smart Contracts
Financial
Institutions
Utilities
Tele-
communications
Self-Sovereign
Identity

9. Contacts
John Lilic
ConsenSys
john.lilic@consensys.net
Sam Warburton
RWE
sam.warburton@rwe.com