To break away from centralized and unfair water market practices of levying heavy water fees on consumers and other users, blockchain in water utilities can be just the solution. It will create an efficient and ethical platform for water management.
Water is an essential commodity and a necessity. However, when it comes to water management, there are multifaceted challenges that need to be addressed due to the scarcity of this resource. Water is treated and used as a commodity for trading and profit, benefiting only a specific group of people, while many are deprived of it for basic necessities. Centralized organizations are responsible for deciding the water’s cost and quantity distributed. Consumers have no choice but to pay unreasonable prices and consume the water the centralized organizations supply.
Blockchain in water utilities can be employed to transform the management of this scarce resource. It will help to provide a safe, transparent and decentralized digital ledger to keep track of transactions between various parties.
How Blockchain in Water Utilities is Useful
The blockchain approach will help to bring about a change in the way water is managed by:
1. Managing Water Efficiently
Any entity or centralized organization responsible for the supply of water can be removed from the water supply process using blockchain. A decentralized, transparent and fairer system of equally distributing water over vast distances and deciding on water fees can be developed using blockchain. Using peer-to-peer communication will help ensure a smooth interaction between various parties involved in the distribution, preservation and conservation of water. Blockchain data can’t be tampered with (as it is decentralized), which makes it a safe platform to record various components such as fees, quantity, distribution, etc.
2. Improving Water Quality
Water pollution can be reduced using the system of blockchain and IoT. Automatic sensors can be deployed to identify pollutants, measure the pollution level and notify the water authorities of the same. The use of IoT and blockchain in water utilities can help to locate any leaks or burst pipes and prevent water wastage too.
3. Conserving Water
Blockchain can ensure water conservation by observing users’ utilization behavior, which is an important measure of water saving and efficiency. The users can access information on the use and quota of water. This will lead to minimized water consumption. Water monitoring devices will provide real-time data on water usage and a comparison between the planned and actual use of water quota. This will also be integrated with a warning system, in which users who have exceeded the water supply allocated will be charged progressively higher as and when their uses increase.
Blockchain in water utilities has the power to reform its management by ensuring transparency, security and decentralized mechanisms for its efficient use. It is everyone’s responsibility to utilize water consciously, and blockchain can help provide the needed nudge in this direction. It will help maximize the use of this scarce resource and help to tackle the ever-going challenge of sustainability.
