German power provider Eon and Italian electric utility Enel have traded electricity over a new market place, which uses blockchain technology. The business could be handled directly and in a matter of a few seconds, the German energy company said. There is no need for a central broker, which reduces the cost of electricity procurement. In the future, customers should profit from this direct electricity trading via Blockchain and thus from the cost reduction, continued Eon.

The German energy company tested the decentralized wholesale trade in its Future Lab last year. The basis is a peer-to-peer network developed by the IT specialist Ponton. In May of this year, they formed the “Enerchain” initiative with other partners. According to Eon, 33 companies have now joined forces and have developed a decentralized European marketplace for energy trading. On Friday, the first contract was concluded.

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“The Enerchain initiative is a good example of open, cross-industry collaboration,” said Eon’s Chief Digital Officer Matthew Timms. “We all believe in the tremendous potential that the blockchain technology offers to the new energy market and, above all, our customers.”