Although the cryptocurrency markets were pulled down by the bears in 2018, blockchain development did not slow down. Recently, Samater Liban from the Sun Protocol explained how to translate solar energy into digital tokens. The project involves the integration of social responsibility in monetizing solar power in Africa by combining it with the crypto tokens and blockchain economy.
Recently, Frans Kempen (IBM) has interviewed Liban Samater from The Sun Protocol. He explained the process in detail. The entire process starts with the sun hence it is dubbed the Sun Protocol. It fits the description of all validation points that exist within the project division. The energy technology will be spread by getting energy creators and suppliers to collaborate with the consumers.
The collaboration is expected to give rise to a loyalty program that uses the software in a Mobile App to offer tokens generated from a sales capacity of electricity using blockchain automation. The loyalty program issues token for the amount of electricity consumed. Liban hinted that in future they may distinguish between productive and non-productive consumption.
The idea is to incentivize the productive consumption with the help of the involved communities. Generally, the tokens from the loyalty program will be deposited in the Mobile App wallets. The users can then acquire electricity using the accumulated tokens.
Once a consumer buys energy from a supplier and uses it, the project’s smart contract generates the token for the consumed energy automatically. The token will have a fixed value of a fraction of a kilowatt-hour that is given back to the consumer in the form of a token.
The primary target is to enable users to send, receive, and see their token balance. Since the value of the tokens is fixed, people can take or give them in exchange for other goods and services. The tokens will also help people who lack trust in the mainstream giving systems.
The token is expected to have a stable market value that everybody trusts. It is a form of a stablecoin supported by electricity and energy that entices people to use it as a mode of exchange.
The Sun Protocol is similar to the miles accumulations model for the flights. Users have to use more electricity to get tangible rewards.
This model can accumulate tokens for use in the purchase of things outside electricity because the token has a fixed electricity value. However, the challenge arises in convincing electricity suppliers to commit to exchanging the tokens against fixed amounts of kilowatt-hours.
The project is currently undergoing a proof of concept program in the University of Vienna for cryptocurrency economics researching on its economic sustainability. A funding event will be held in March 2019 where prototypes will be unveiled. Sale of tokens and token issuance will also take place in the same event.
Currently, the organizing companies like Green Tech have operations in Mali, Niger, and Somaliland. However, it is not yet clear which country will host the new token’s pilot projects.