Commercial | United States

Energy Blockchain & Distributed Ledger

Democratize green energy investments by removing complexities & intermediaries usually involved

How does Blockchain Benefit Utility Scale solar Development?

Distributed Ledger (DLT) and Blockchain technology companies such as Grid+ and WePower have identified retailers as the main source of inefficiency in the consumer electric market.

Retailers own very little of the grid infrastructure aside from managing bills and monitoring meter usage. Supplementing consumers with blockchain can reduce consumer bills by 40%. Blockchain connects users directly to the grid, allowing them to buy energy from grid at the cost they desire.

The result is a more equitable, stable energy market with lower electric rates.

As traditional funding avenues continue to become scarce, the question to answer is, "Can blockchain, which offers a secure decentralized platform for unfamiliar parties to exchange information and complete contracts, turn the tables for new access to capital for clean energy?

Smart Contracts for Origination and PPA Transactions

Smart Contracts are written in a virtual language and they can enforce themselves automatically and autonomously based on a series of programmed parameters. Enterprise Ethereum plays a large role in creation and execution of smart contracts. Complex transactions can be processed into Ethereum protocols.

Value Proposition:

reinforces security
transparent and trustworthy
avoid misunderstanding
avoid falsifications
avoid alterations or dispensing with intermediaries

Smart Contracts are executed on Blockchain; meaning terms are stored in a distributed database and can't be changed. Transactions are also processed on Blockchain which automates payments for counter parties. This allows for the developer to market and transact PPAs with anyoen in the world.

How Smart Contracts Work

User initiates transaction from Blockchain wallet
Transaction arrives at distributed database where identity is confirmed
Transaction is approved
Transaction includes code that defines type of transaction to be executed
Transaction added as block in Blockchain
Any change in contract status follows same process to be updated

Benefits of Smart Contracts

INDEPENDENCE

participants make arrangements

SECURITY

contract is duplicated in all nodes of network and can't be lost

ACCURACY

a smart contract reduces to zero the possibility of errors in terms of processing

RELIABILITY

contract is securely stored in a distributed network

SAVINGS

by cutting out intermediaries and commissions, there's a reduction in cost for all involved

SUSTAINABILITY

eliminates use of paper, notaries and registers, and pollution is reduced as a result of less travel

Blockchain Peer-to-Peer Energy Trading

Peer-to-Peer is a shared network of individuals who trade and buy excess energy from other participants. Individuals who produce their own energy can trade it with peers and neighbors.

59% of Blockchain energy projects are building peer-to-peer markets.

Community trading benefits the masses because it reduces control from authorities. As countries strive to reach energy parity, the cost becomes equal or less than traditional retail energy.

As a result of consumers engaging in peer-to-peer energy trading, micro grids are formed, creating a complex, secure energy network.

Benefits of Blockchain Electric Data Management

Blockchain data management provides consumers greater efficiency and control over their energy sources.

Types of energy data:

market prices
marginal costs
energy law compliance
fuel prices

The cost of clerical errors and corruption can be detrimental to businesses. Date can be manipulated or misreported & omitted. An immutable ledger provides secure real-time updates.

DLT & Blockchain effect on Utilities, Oil & Gas industry

Utility providers store data which is a unique opportunity for Blockchain to be deployed.

Distributed Ledger Blockchain can benefit Utilities by enabling fast integration of new commodities by reprogramming the original smart contract.

Enterprise Ethereum also plays a crucial role by processing data and creating transactions for a mass market energy sytem.

Companies such as BTL Group aka Global Block Digital specialize in asset trading of this exact kind.

Blockchain | DLT Finance

Successful funding rounds are the cornerstone to development growth. Seeking and securing capital can be a convoluted process with many barriers reaching the right investor, financier or VC that fits your needs.

Green power generation projects can secure development funding by selling part of their future energy production directly to consumers and investors up front.

For example: Buyers purchase energy tokens that represent 1kWh of electricity produced by that project in the future. The tokens are used to offset energy bills, trade on marketplace, or sell to wholesale energy market. These smart contracts are brokered through a proprietary platform that provides a funding stream for the energy projects.

Companies such as Hyperion Fund, remove barriers facing independent investors, support blockchain visionaries and provide professional due diligence.

How Blockchain can revolutionize the Real Estate market

Blockchain is poised to make a big impact on the real estate market. Some benefits of blockchain + real estate:

would be new ways for buyers and sellers to connect
cuts out the intermediaries, reducing costs
this technology helps to codify the practice of fractional ownership in real estate

Six ways Blockchain is changing Real Estate

Platforms and Marketplaces

Traditional real estate technology utilizes lawyers, banks and brokers and involves listings and connecting buyers and sellers. Blockchain finds new ways to trade real estate by enabling trading platforms and online marketplaces to support real estate transactions more comprehensively.

Companies such as ATLANT, develop platforms that use blockchain to facilitate real estate and rental property transactions. Sellers tokenize assets, similar to a stock sale. They then liquidate assets through a token sale using the platform. Collected tokens are sold as fiat currency with buyers owning a percentage stake of property.

Intermediaries

New blockchain platforms will eventually assume functions such as listings, payments and legal documents. Cutting out the intermediary results in savings on a commission and fees charges. The entire process is much faster with no middle man.

Liquidity

Real Estate is considered an illiquid asset because sales take time. Not the case with cryptocurrency and tokens, they can be traded for fiat through exchanges. Tokens can be readily traded. The seller doesn't have to wait for a buyer who can afford the whole property in order to get value out of the property.

Fractional Ownership

DLT ownership lowers barriers to real estate investing.

Ownership usually requires upfront money to acquire the property or a group of investors would pull their cash together to buy a big ticket property.

With blockchain investors only need to access a trading app to buy and sell, even fractions of a token if they see fit. They can also avoid managing property themselves which can include arduous tasks such as maintenance and leases. Upkeep can be costly and dealing with tenants can be a nightmare. Fractional investing also effects financial activities such as lending, where sometimes property owners have to put their own property up as collateral for loans to get quick cash.

Another perk is that depending on contract terms, property owners may continue enjoying use of their property.

Decentralization

Information stored on Blockchain is accessible to all peers on the network, making data transparent and immutable.

Reference the 2008 housing crash to see how greed and no transparency in entities can have disastrous consequences.

Decentralized exchange has trust fabricated into the system. Once data is verifiable to peers, buyers and sellers can have more confidence in conducting transactions. Fraud attempts are also lessened.

Several states have made smart contracts admissible by passing legislation. This makes them more enforceable beyond technology itself.

Costs

A decentralized network such as Blockchain, can alleviate the costs associated with real estate transactions.

There are many costs related to real estate such as;

inspection costs
registration fees
loan fees
taxes associated with real estate

Not only that, but these costs can fluctuate based on regional jurisdiction.

The good news is these costs can be reduced and eliminated from the equation as platforms automate these processes, making them part of the system.

The global real estate market is worth billions of dollars, but owned by the wealthy and big corporations. Utilizing blockchain, more individuals can access the market where transactions are transparent, secure and equitable.

Tokenization

A token represents digital ownership of 'something' in a secure way, using cryptography methods. That 'something' can be anything including, but not limited to;

syndicated loans
corporate bond
derivative piece of art
crypto asset
company share
fund share
real estate asset

Properties and requirements of certain tokens differ depending on use case.

Types of Tokens

Fungible | an identical and indistinguishable token that can be converted to USD currency, company share or ounce of gold. Bitcoin or Ethereum are good examples of the most popular fungible tokens.
Non Fungible | a collection of tokens representing unique, finite tokens that are not mutually interchangeable. NFTs create verifiable digital security represent asset ownership in the form of real estate, luxury goods, art work, collectible objects in video games, etc. NFTs are used for items that require a digital fingerprint. NFTs open a whole new world of powerful opportunities for using blockchain technology.
Hybrid | a mix of fungible and non-fungible tokens and more complex. Each token belongs to a class and inside given class all tokens are the same. Fungible tokens can be distinguished from non-fungible. Hybrid tokens act like a group of NFTs.

Tokenizing Business Workflow and it's Behaviours

Every token is a smart contract dictating attributes and functionality. Each token has codified rules and behaviours that follow throughout it's lifetime. A token must be applied to a 'use case' to be a financial asset, setting specific rules and behaviours governing the asset.

A business workflow uses specific rules that apply to the token and dictate behaviour in certain scenarios.