The National Interest Article Review
While the U.S. government is still neglecting to think about the strategic application of blockchain technology, China benefits from this innovative technology. For example, few months ago, the China Energy Administration (CEA)—the state agency responsible for formulating energy policy under the National Development and Reform Commission (NDRC)—announced that they would explore blockchain-based power trading platforms to facilitate electricity trading between self-contained power generation units and the state and national grids, according to a policy document released late August.
The policy will explore the possibility of small and medium-sized power generation and storage facilities that service local neighborhoods to trade energy with state and national grids. This plan aims to avoid or alleviate power outages in the event of natural disasters or droughts—like the recent drought and heat wave, which has taken a toll on Sichuan province’s electricity supply, causing massive industrial and residential power cuts.
Blockchain is ideal for this project. It allows digital information to be recorded and distributed, but not edited, improving data's traceability, security, and trustworthiness. This should push Western democracies to think of similar initiatives, especially the United States. In the West, blockchain success will depend on a regulatory policy environment that provides clarity, allows for growth, and keeps the industry accountable. This would be the only way to see new developments flourish.