Energy and Natural Resources Committee holds hearing on blockchain technology

The Energy and Natural Resources Committee recently held its first hearing on blockchain to explore the technology’s potential impacts on the United States’ energy system.

The hearing examined blockchain’s potential impacts on energy demand, consumer engagement, grid efficiency and cybersecurity.

“We are delving into a new issue for the committee – whether or not blockchain and related technologies will soon have a transformative impact on energy infrastructure,” Sen. Lisa Murkowski (R-AK), who chaired the hearing, said. “This type of computer-driven industry needs electricity and a lot of it. Miners have flocked to places with the cheapest electric rates, but an overnight demand for more power can cause serious stress on a local utility and impact the grid.”

In his testimony, Arvind Narayanan, associate professor of computer science at Princeton University, discussed the cybersecurity implications of blockchain.

“Blockchain technology brings potential benefits as well as risks to the cybersecurity of energy systems,” Narayanan said. “It is not essential for achieving the foundational components of digital security, and policymakers should view it as one of several possible technical tools for addressing energy cybersecurity.”

The hearing also included testimony from Paul Skare, chief cybersecurity and technical group manager of the Energy and Environment Directorate at the Pacific Northwest National Laboratory; Thomas Golden, technology innovation program manager at the Electric Power Research Institute; Claire Henly, managing director of the Energy Web Foundation; and Robert Kahn, president and CEO of the Corporation for National Research Initiatives.