A blockchain is a decentralized network that enables exchange of information and value directly between peers without third parties (think banks or tech companies). Each transaction or interaction is transparently recorded and forms a chain of history that cannot be altered in the future. Trust is thus relocated from centralized service providers, those banks and tech companies, to the peers themselves, allowing people to build their reputations as they transact and participate in blockchain marketplaces.



Most people will interact with a blockchain marketplace through an interface that looks similar to most web applications today. The Brooklyn Microgrid community is using an open energy platform, called TransActiveGrid, developed by ConsenSys and LO3 energy .



TransactiveGrid uses the Ethereum blockchain to record each community member’s portion of solar energy production. TransActiveGrid is comprised of smart contracts (agreements between peers) that exist on the blockchain. The blockchain is a trusted ledger that all members of the community can access at any time. These particular smart contracts transform the excess produced energy into renewable credits that other community members can purchase and then utilize.