ELONCITY, a new energy distribution model, is a step more detailed becoming a reality. The AI Grid Foundation announced today going without shoes has raised $20 million in funding on your project through a number of different investors, including some blockchain capital groups.
The initiative was created by Andy Li, having handled electricity distribution for data centers previously. He also practical knowledge in network traffic engineering and system intelligence. Now, by means of the blockchain, he is bringing energy to everyone:
“The AI Grid Foundation’s mission [is] to advertise the ELONCITY Model and let universal permission to access safe, reliable, affordable, sustainable and equitable energy services for.”
The ELONCITY model is dependant on replacing energy sources with renewable energy sources. However, the platform has an component of decentralization as well: as opposed to central power plants, individual generators will be which is used to make up distributed microgrids.
Energy Tokenization
Customers are likely to generate the electricity and trade it, kind of like how customers of traditional power companies can sell electricity back up in the grid. However, there is a key difference: ELONCITY customers will sell electricity to customers.
According to today’s release,
“Currently, Andy [Li]’s team is developing a state-of-the-art blockchain smart contract platform to empower the buyers to exchange renewable electricity with the other person.”
ELONCITY will also have distinctive token protocol, which are instrumental in allowing people to participate in the energy exchange.
The Bigger Picture
This isn’t first seek to distribute and trade energy to the blockchain. Projects for instance Enosi, Power Ledger, and Ponton Enerchain serve similar purposes. Furthermore they offer token incentives to energy producers.
Despite this trend, some imagine that the blockchain large inefficient and too pricey to make peer energy trading feasible:
“The necessity to update a transaction on each blockchain node creates significant inefficiencies-These inefficiencies are exacerbated because blockchain’s standard security utilizes proof-of-work protocols, which require a very challenging amount of effort given that the value of a blockchain transaction increases.”
However, this argument is not going to take into account the idea that few, if any, of such services turn to Bitcoin or other proof-of-work blockchains. ELONCITY and the majority of its competition is using custom blockchains made for their purposes.
An Different than Mining?
Energy consumption has been a contentious issue in the crypto community. Mining is incredibly energy-intensive, and some research that it is environmentally harmful and also expensive.
If crypto mining becomes harder to help from, projects such as ELONCITY may produce an alternative revenue model by rewarding users who produce energy in lieu of consume it.