what is the way forward and how can blockchain technology help – Cryptopolitan

Inflation has reached levels that are now higher than the peaks reached during the last two economic crises of the first decade of the 21st century.

There are several reasons for this reality, but one of the main reasons is the sky-high energy prices on a global scale, which puts enormous pressure on companies, manufacturers and the entire industrial sector. Energy prices have actually reached highs in a very short time across Europe:

Average monthly wholesale electricity prices in selected countries of the European Union (EU) from January 2020 to November 2022 (Source: Statista). In Germany, for example, prices rose from €43.6 per megawatt-hour in September 2020 to €469.35 per megawatt-hour two years later – a more than tenfold increase.

Consumers and businesses are bearing the costs, and many are looking for a long-term solution that will allow us to become energy independent and at the same time have a higher degree of reliability during economic and political turmoil. While economic and political measures such as tax breaks and subsidiaries can alleviate some of the symptoms of an energy crisis in the short term, we have a great need for both technological solutions and regulatory frameworks that can provide a solid foundation for the entire energy sector.

Blockchain technology and the energy industry

In the early years when the blockchain was still in its infant stages of adoption, the energy sector was among the first to start studying the potential positive effects it could derive from implementing the new technology in its traditional chain of operations.

Traditional energy companies found that by implementing blockchain, they can make their supply chains more efficient while offering a higher degree of transparency to the end consumer. More importantly, blockchain technology offered something that the energy sector has not faced before – the potential for decentralization and democratization of the way energy is distributed between stakeholders. With the full transparency offered by distributed ledgers, data can be made tamper-proof and publicly available, removing one-sided information asymmetry that is still believed to be among the biggest problems for end consumers.

Several projects in the energy sector in the last 6-7 years appeared. WePower was one of the first to offer a comprehensive solution for decentralized P2P energy trading and thus became the catalyst for a completely new business model that was expected to take the energy sector by storm. Consumers will finally be freed from the monopolies imposed by electricity suppliers and will be able to buy and sell energy directly with other players on decentralized marketplaces.

Other initiatives specifically recognized the transparency offered by blockchain when it comes to data and focused on implementing new methods of reporting and payments. Traditional smart meters will be integrated with blockchain technology, enabling transparent real-time consumption reporting that is automatically stored on an immutable ledger. In this way, the possibility of overloading from the supplier and the lack of clear information to the consumer about what they are paying for will become a thing of the past.

More recently, a project supported by a team with significant experience in the energy sector came up with a revolutionary model that exploited the synergistic effects of both the blockchain and the renewable energy sector, both of which have the potential humanity needs for a better energy future. We are talking about Decarbonice.

Renewable energy meets blockchain

Decarbonice is a full-fledged energy ecosystem based on blockchain technology. The project introduces a disruptive model that allows each household and business to produce its own green energy independently, risk-free and most importantly – go beyond carbon neutrality and become climate positive. The project envisions significant energy cost savings for all stakeholders – from households to businesses and even large manufacturers with high power needs – which will continue to increase as the ecosystem expands and the PNE token evolves in price.

Investors can acquire the ecosystem’s native PNE token and lock it as collateral. As a reward, they receive high-quality renewable energy installations for free that they can easily install, connect to the grid and use to start generating their own green energy. They have to pay for the energy produced with the installations, but at a much lower price compared to their traditional electricity supplier – Decarbonice guarantees savings of between 20% and 80% depending on various factors which will be even higher the higher the price of PNE. increases. Investors also have the option to purchase hardware units directly with PNE tokens, which will give them deep discounts, allowing them to acquire some of the best renewable energy installations currently available on the market at prices well below the market average.

In addition, excess energy produced by renewable energy installations is fed back into the grid, for which investors are rewarded with PNE tokens. After a certain time frame has passed, the investors gain full ownership of the renewable energy installations and get back their locked PNE tokens plus any additional rewards they have acquired.

The PNE token represents clean energy investment and is the first token on the market that will generate renewable energy indirectly, instead of consuming it like most of its counterparts. The higher the market value, the more clean energy the token will represent. It will also provide a number of additional bonuses to its holders, as well as access to some unique features that will only be available with it.

The project further plans to introduce various mechanisms aimed at strengthening the token over time. One of these mechanisms will be symbolic buybacks with a percentage of the generated income and with the proceedings obtained from the CO2 certificates the company will be qualified for as a climate positive enterprise. Another mechanism would be to maintain token reserves if the price of the token develops positively, which would allow a higher scarcity of PNE in the markets in case of constant or increasing demand.
Decarbonice is revolutionizing the giant global energy markets by giving everyone the power to become energy independent with little or no risk. The project combines two of the most promising concepts for the future of the energy industry – blockchain technology and clean, renewable energy. If you are interested in learning more about the project, be sure to visit their website: www.decarbonice.io