Power ledger is building a platform where users can contribute or consumer clean energy resources across the network. Pegged to local currencies and convertible to cash, the platform aims to focus on individuals in high density and urban environments. Unlike centrally managed power systems, these decentralized energy resources are not powered by one central provider, potentially creating a more competitive environment and preventing the potential for complete system shut downs.
The team believes that by building this blockchain enabled peer-to-peer energy platform, they can reinvent energy markets. They intend to have a wide menu of energy applications including ones that can give retailers or users the ability to simply trade electricity with one and another in real time. Long term, the team envisions an application that will allow for shared ownership of energy assets as well as autonomous energy agents that will automatically disperse energy that is acquired.
Power Ledger operates on two blockchain layers and uses two tokens, POWR and Sparkz. The POWR token is an ERC20 token that can operate on the Ethereum network. Sparkz, on the other hand, is purchased and redeemed using fiat currencies within individual trading platforms that have closed-loop exchanges for energy and Sparkz. In the system, the POWR tokens are the protocol tokens used to access the Power Ledger platform, as well as interact with the Sparkz token directly. Sparkz tokens are stable and pegged to local currency. As the Sparkz tokens are a closed loop internal token, they can move instantly with banking overheads to allow for timely micro energy transactions. In the future, the team expects that application hosts such as property managers, utilities and retailers will demand the POWR tokens as their platforms grow and they will need the Sparkz to power the platform.
Power Ledger uses the public Ethereum blockchain to support the POWR token as well as a private consortium blockchain for the transaction of energy within peer-to-peer trading environments using the Sparkz token. Starting at that protocol layer, the Ethereum blockchain core allows for POWR to be ERC20 in nature and provides a trustless and open source implementation of key components of POWR. Connected with layer is the Power Ledger Core that includes an industry specific consortium blockchain. Called the EcoChain, it is a low cost, in-house, Proof-of-Authority blockchain that has been live tested in multiple public trials. Its key functions include the management of the internal Sparkz token, fiat payment processor integration, storage and verification of smart contract readings and a whole suite of other possibilities that can be unlocked as the platform scales.
The team plans to transition to a public proof-of-stake blockchain in the future to enable new features and the inclusion of new markets like carbon trading and peer-to-peer energy exchanges.