January has been a slow month in the cryptocurrency world. Crypto prices have taken a huge hit after the massive run-up in December. Unfortunately, going into February, this trend doesn’t show signs of reversal, but initial coin offerings (ICOs) continue to sprout up as teams try to leverage the potential of blockchain technology and offer revolutionary, new products and services to the world.
One such ICO that plans to disrupt the huge renewable energy industry is Enbloc.
In the past decade, clean energy has seen a slew of improvements as increased efficiency and lower costs continue to make clean energy a viable alternative to fossil fuels. For example, in their recently released abstract (available in their Telegram), Enbloc claims that the price of solar panels and wind turbines has been cut in half while efficiency has doubled.
Yet, while the production of green energy technology has improved, accounting for and transacting green energy has not. As an example, accounting and transacting processes are often expensive for energy suppliers, and suppliers often have to hedge against defaulting customers with the ultimate effect of that being that clean energy costs more for reliable customers that pay the right amount on time.
In response to the inefficiencies that currently exist in tracking and transacting clean energy, Enbloc wants to use the automated transactional processes made available by the Ethereum blockchain to make clean energy more abundant, accessible, and affordable for both suppliers and consumers. By monitoring energy usage with blockchain or distributed ledger technology, accounting for energy transactions will be low-cost, low-maintenance, and ultimately more efficient.
Enbloc’s ultimate hope is that through the increased efficiency and lowered cost of managing clean energy usage and transactions, more consumers will use clean energy due to lowered costs and energy suppliers will build more clean energy infrastructure to meet demand, all of which will result in increased clean energy adoption and growth.
While the Enbloc team’s goals are lofty, if they can pull it off, it would be huge for clean energy, which has yet to see mass adoption, as costs are still usually more than those of fossil fuels like gas and oil.
How Does Enbloc Work?
Enbloc will improve the accounting and transacting processes of clean energy using their Lume Energy Manager.
Both suppliers and consumers will connect to the Enbloc network using Lume Energy Manager, which includes clean energy monitoring software and hardware.
Enbloc for Consumers
Consumers will install an energy-monitoring hardware device on their smart energy meters using a simple plug and play setup.
On the software side of things, consumers can use Lume Energy Manager’s dashboard to manage clean energy consumption by setting the ratio of clean:“dirty” energy that they want to use or let Enbloc do the work by selecting the optimized option, which will automatically select the cheapest energy option available on the market.
Though Enbloc will at first offer consumers the option to set the ratio of clean:dirty energy that they want to use, the company expects that by 2025, all consumers will switch to clean energy due to increased improvements in clean energy costs and efficiency.
Enbloc for Suppliers
Suppliers will use the Lume Energy Manager to auction or trade energy to consumers. They will be able to choose how much of their energy they want to sell (from 0-100%) as well as the price per kilowatt of sold energy. Enbloc believes that this free-market approach to clean energy sales will increase competition among clean energy suppliers and lower prices for clean energy consumers, as suppliers would compete to offer the best clean energy solutions at the best price.
Moreover, customer invoicing would be automated through the use of smart contracts. Since customer energy consumption and billing will be updated in real-time thanks to smart contracts, suppliers would have less overhead costs in terms of accounting, which would hopefully benefit the end consumer in the form of cheaper renewable energy.
Other Uses for the Enbloc Network
In addition to managing and monitoring clean energy consumption, providing a clean energy marketplace, and managing clean energy billing and invoicing, other uses for Enbloc’s network include the following:
- Financing tool for clean energy developers (developers can finance projects by issuing their own WATT tokens to consumers who are interested in using their energy)
- Investment platform for power purchase agreements (PPA) (contracts between energy buyers and sellers for the designing, permitting, financing, and installation of energy systems)
- Customer procurement for energy retailers
Enbloc Token Economics
Enbloc’s network will have two Ethereum-based, ERC-20 tokens: WATT and FIAT.
WATT will be how suppliers and consumers exchange energy. WATT tokens will represent energy that is bought and sold on the Enbloc network. Consumers can use energy that they buy (and thus use up their WATT), trade WATT for other cryptocurrencies on third-party exchanges, or sell WATT to other users on Enbloc’s network.
FIAT, which will be pegged to the United States Dollar (USD) (1 FIAT = 1 USD), will be used by consumers to buy energy from suppliers. When consumers buy energy from suppliers, they receive energy in the form of WATT and suppliers receive FIAT, which can be exchanged back to fiat currencies like the dollar.
Thus, WATT is backed by energy while FIAT is backed by USD.
Enbloc will start its operations in Colombus, Ohio in the United States and plans to expand its operations throughout the US in its first four years, then throughout the world afterwards.
While Enbloc claims that the majority of the Enbloc network’s current use cases will be ready by Q2 2018, it plans to implement further use cases after the conclusion of its ICO like wireless energy distribution, an energy storage facilitator, a smart grid management system, and an electric car-to-grid energy trading software.
The Big Question: Is the Enbloc ICO Worth Investing in?
While lowering costs would obviously be a huge boon for the clean energy industry, as of February 2, 2018, details on the Enbloc project are very light:
- There is only an abstract (no official whitepaper).
- There is no information on token sale dynamics, such as funding cap, amount of tokens sold, total token supply, and so on.
- There is no Github page.
- There is no information on the team, advisors, or partnerships.
- Presence across social media platforms like Facebook, Twitter, and Telegram is close to nothing.
As such, it’s fair to say that the Enbloc project is only a “whitepaper ICO” (not even – they’ve only released an abstract on the Enbloc project), or simply an idea at this point.
Thus, we recommend signing up for updates on enbloc.io or joining their Telegram group if you think that Enbloc has potential and want to learn more.
Thanks for reading!