Energy Web Chain :Cryptocurrency To Protect The Environment
1. Introducing
In this article about green cryptocurrencies I talk about Energy Web Token (EWT), which builds operating systems for energy grids. Energy Web Foundation (EWF) is a global, member-driven nonprofit accelerating a low-carbon, customer-centric electricity system by unleashing the potential of blockchain and decentralized technologies. EWF focuses on technology integration and development, co-creating standards and architectures, speeding adoption, and building community.
Energy Web started in 2017 as a joint initiative between RMI, a global non-profit with decades of experience identifying pathways to profitably decarbonize the energy sector, and Grid Singularity, a noted blockchain developer who saw the technology’s promise in the energy sector, along with a cohort of 10 founding energy companies.
Although business models supporting clean and distributed energy have long been clear, they aren’t scaling quickly enough to achieve global decarbonization targets. One key barrer is a lack of cohesion when it comes to digital technology. In all energy systems, today’s digital landscape is highly fragmented and inefficient, reyling on complicated integrations between competing platforms and protocols throughout supply chains. This approach won’t work in an environment with evolving objectives, a growing number of stakeholders, and an increasingly diverse resource mix.
To make the global energy transition successful, the energy sector needs digital technology that enables a fundamentally different way of working; namely, radically reducing the cost and complexity of coordinating a multiplicity of companies with different roles, objectives, and IT systems. We started Energy Web to build it.
2. The Energy Web’s Proof-of-Authority (PoA) Consensus Mechanism
These systems make it simple, secure, and efficient for clean energy assets to support the grid of the future. One of the main selling points of EWT is that it offers enterprises the opportunity to create completely customized dApps. While other blockchains like Ethereum also provide this diversity, Energy Web Chain was purposefully designed for the energy sector. The Energy Web virtual machine operates under a proof-of-authority (PoA) consensus. This means that the blockchain relies on trusted validators for the creation of new blocks. The PoA consensus is an alternative validation method, and it allows faster processing times than the Proof-of-Work (PoW) consensus. Proof-of-Authority keeps EW Chain’s distributed network in sync.
3. Proof-of-Authority Consensus Mechanism Benefits
- More consistent and predictable time and state finality,Significantly improved resource efficiency (i.e., lower energy consumption),Increased throughput
The combination of limiting validator status to a defined number of nodes who have passed a vetting process and establishing economic and reputational incentives (validators have something at stake) introduces an inherent level of trust between the participants. Since there is no competition among validators to race each other to create blocks, transaction throughput can be increased (faster block time) while energy consumption and computational complexity is drastically reduced (compared to Proof-of-Work).
Get 0xBoneKenn previously Kenntaa’s stories in your inbox
Join Medium for free to get updates from this writer.
2. Reduced transaction costs
The reduced computing and energy requirements in turn reduce the operating cost for validators. In combination with the increased throughput, this makes transaction costs lower and more predictable than those on Ethereum.
3. Minimal network latency
Validator nodes in the EW Chain are typically run on dedicated hardware in professional server environments with high-speed Internet connections.
4. Simplified protocol upgrades
Limiting validator status to known and legally registered entities simplifies the process for rolling out upgrades to the core protocol (coordinating a vetted group of validators with aligned incentives is easier than a dynamic group of anonymous miners).
The PoA mechanism only allows for a certain number of nodes to validate transactions and create blocks, called validator nodes, who must meet certain eligibility criteria, such as being a legally registered organization and being an official member of the Energy Web Foundation. It has been also released a stacked tech solution called Energy Web Decentralized Operating System (EW-DOS). It allows users to control and manage their electrical systems online and has three layers that work together to enable development and deployment of decentralized applications for the energy sector.
4. Partnerships
The main industries that EWT covers are the following: Grid Operators, Aggregators & OEMs, Energy Suppliers, E-Mobility and Crypto Climate Accord. Energy Web Token has a max supply of 100,000,000 tokens. You can read the WhitePaper here. Energy Web has grown to over 100 partnerships, including industry giants Tepco, Siemens, Shell, and Exelon.
Leave a comment below and tell me what you think about Energy Web Token, the role of Cryptocurrencies in the environment protection, the aspects that can be improved and if you know other notable green Cryptocurrencies. Consider this space a place to talk without censorship.
#EWT #EnergyWeb #Decarbonization
