Can we put the blockchain in the Sun so that it uses the energy of the sun to power itself? Then it is a perpetual blockchain and will never run out of energy and also beyond the reach of any bad hats. Well that is not exactly what I meant by putting the blockchain in the Sun.
It just to get your attention but the idea of blockchain to democratize the energy from the Sun is now possible. Can we use the blockchain to democratize the energy from the Sun? That is the question this article will seek to answer.
As the world continues our journey to reduce our reliance on fossil fuels and seek more and more renewable energy sources, solar energy utilization has been increasing over the years.
It is not an odd sight to see solar panels on rooftops of residential houses, rooftops of commercial and industrial buildings as well as big solar farms on the outer fringes of cities and towns. Solar energy is clean and renewable and the world needs to be incentivize to tap more energy from the Sun.
So What's the Problem?
The problem with solar energy is that solar panels are still expensive and purely using the solar panels for our own home energy usage will not be able to achieve a decent return on investment (ROI) unless we are able to sell the excess energy at decent rates. The other issue with solar energy is that the generation of solar energy is during day time, when most of our energy usage is low as most of us are at work. The other little nuisance is that only owners of rooftops (house or buildings etc) can install solar panels. Residents of apartments do not have the luxury of installing solar panel unless the entire apartment block can agree to share the cost together.
How do we democratize the energy from the sun? How do we allow more people to use solar energy without the heavy cost of installing solar panels? How do we also encourage more people to install solar panels and reduce reliance on fossil energy?
Enter Power Ledger. This company in Australia is using the blockchain to be able to answer all the questions I posed above. Power Ledge will create an Ecosystem that will have several applications that will seek to democratize sunshine, incentivize generation of solar and other renewable energy and allow anyone to be a shared owner of a renewable energy asset.
First, how do we democratize solar energy with the blockchain? Peer to Peer (P2P) trading of solar energy between consumers as well as with utilities, retailers, property managers, etc. As a consumer, you will be able to buy renewable solar energy from another consumer who generates solar energy (this consumer will be known as a prosumer) or you can sell your excess solar energy to other consumers. Power Ledger created 2 tokens to facilitate a market place that is unregulated. Consumers can choose who they want to buy energy from.
Second, how do we allow more people to use solar energy without installing solar panels themselves? With a deregulated market, consumers can choose to buy electricity from solar energy providers who are on the Power Ledger ecosystem and not have to buy electricity generated from miles away. It will also be possible for consumers to buy solar energy from their neighbors. This way, anyone can enjoy low cost renewable energy.
Third, how do we also encourage more people to install solar panels and reduce reliance on fossil energy? Enter Autonomous Asset Management. This application on the Power Ledger Ecosystem will allow individuals and communities to come together and share the ownerships of renewable energy assets such as solar farms. The income generated from these assets can be distributed via the Power Ledger blockchain to wallets of the owners. At the same time, the Power Ledger ecosystem is developing a Green Energy Loyalty Rewards program that will reward renewable energy producers with POWR tokens. These POWR tokens are purchased on the exchanges with transaction fees on all P2P transactions on the platform. Through this program, renewable energy producers will be rewarded.
Ultimately consumers are also given the choice to buy energy from producers of renewable energy like your neighbor who is selling his excess solar energy. The power to choose who to buy from and what type of energy to use is how the blockchain can be put onto the Sun, or at least on the energy of the Sun.
Well maybe I will continue to think about my blockchain “in” the Sun. Wait out for my ICO :)
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