Power Ledger is bringing the dynamics of a shared economy to the energy infrastructure. Given how massive energy consumption and dirty production are changing our climate for the worse, Power Ledger could actually be one of the few industry disruptors that can create the right incentives for the production and distribution of energy generated from renewable sources.
What the team behind Power Ledger is trying to do is a long shot but it’s a shot worth taking. Let’s dive deeper into the project, see what’s it about and why it matters.
- What is Power Ledger
- How does POWR EcoSystem Work?
- What are POWR and Sparkz tokens?
- Team behind Power Ledger
- Factors affecting POWR token price
- How to Buy POWR tokens?
- How to store POWR tokens
What is Power Ledger?
Power Ledger is essentially creating a P2P energy platform where people can either be a prosumer (users who are generating energy) and/or be a consumer (users who’ll be buying energy from the prosumers).
How does the POWR EcoSystem Work?
Power Ledger uses blockchain technology to track every unit of energy that is being generated and then either distributed or sold to the consumer within the Power Ledger Ecosystem.
Moreover, with the help of their tokens, they’ve created an internal financial ecosystem that makes every energy transaction transparent and auditable.
The trustless system allows anyone whose generating surplus energy sell it forward at a price of their choice. Thus, energy producers who use different sources of renewable energy can set their own price at which they’d like to sell their excess energy.
The platform will be using both off-the-shelf and third-party applications to draw out different use cases within the eco-system.
What are POWR and Sparkz tokens?
POWR tokens are the tokens that one will use to access all the services and features on the Power Ledger Platform.
Here are the direct use-cases for the POWR token:
1. Use them as an escrow to gain access to the Sparkz token. You can even exchange your POWR tokens directly for Sparkz.
2. As a reward for prosumers who are generating energy via renewable resources, they call it the “Green Energy Incentivizer”.
3. Priority access to Asset Germination Events: These will be events where people will pool resources to build a massive renewable energy source which later will be used as a supply source for the consumers on the network. As a POWR token holder, you’ll get priority access to participate in such events.
Talking about Sparkz, it is the lowest token denomination that will be used on the Power Ledger ecosystem for the actual sale and purchase of energy units.
Each Sparkz token is pegged to the lowest denomination of the location currency of the concerned jurisdiction. In other words, if USD is the primary local currency then 1 Sparkz = 0.01 USD.
Sparkz tokens are meant to be used inside closed-loop ecosystems. They are not highly volatile like other cryptocurrencies and you’ll know exactly how much value you’re paying for your energy consumption.
The Team Behind Power Ledger
The Power Ledger team matchup is definitely one of its kind and well suited for a project of this stature.
While most blockchain projects consist of a few tech heads who had their first business model at the back of a paper tissue (though there’s absolutely nothing wrong with that), the Power Ledger team seems to have one key person for every important aspect of the business.
From ethereum engineers to Energy system specialists to having their ass covered on the legal front, Power Ledger understands that they’ll be facing a battle on all fronts: Tech, economic, partnerships and user-adoption and they have their first men and women for all those fronts.
What Influences the Price of the POWR token?
Apart from the current speculative environments and price fluctuations due to increased volume, from a long-term perspective, the price of POWR token really depends on the real-life success of the Power Ledger project.
As more people start using the ecosystem to actually buy, hold and sell energy units using the platform, the real value of POWR tokens will be dramatically influenced.
Here are a few major factors that will massively influence POWR token’s value:
1. Increase in consumer base: As energy buyers on the network, users will be incentivized to become prosumers and application hosts. Becoming an application host requires you to hold POWR Tokens, thus, as the number of application hosts increases, the demand for POWR token increases, raising its price.
2. POWR holders earn a small reward as “fees” from the consumers of the ecosystem. For every transaction, Power Ledger charges a small transaction fee which is then used to buy POWR token to be distributed among current POWR holders. Moreover, the same rewards are higher when the transaction is done for green energy.
3. Increase in Renewable Energy Assets: As the demand for energy increases in the network, groups of people will start building pooled renewable energy assets. To build or participate in these asset germination events, one needs to own POWR tokens. With more renewable energy assets being built, the demand and thus the price for POWR tokens will increase.
In short, as the user adoption of the platform grows, the value of POWR token is bound to increase.
However, while there is a lot of potential for upside. It is going to be a very hard for everything to go just as planned or as per the timeline.
A few of the things that could bring a strong challenge to the success of this project are:
1. Huge Surge in Competition: The energy market is huge and when the stakes are this high, you can expect a lot of heat from both established and new players in the market.
2. Lack of user adoption: A big concern since the whole project is based on the assumption that users will buy energy directly from prosumers or that it will reliable enough to function at a large scale.
3. Hacking attempts: No digital network is safe from hacking events and in case of energy, not having a secure ecosystem can lead to catastrophic damage leading to negative press and a poor perception of the whole shared-economy for energy concept.
How to Buy POWR Tokens?
Unlike Bitcoin and ethereum you cannot yet but POWR tokens with fiat currency, however, you can use exchanges like Binance to exchange your bitcoins for POWR tokens.
Here’s a quick tutorial on how to purchase POWR Tokens:
2. Sign up for Binance and deposit your bitcoins in your Binance account.
Best Way to Store Power Ledger Tokens
Since POWR is an ERC20 token, you can store it on any wallet application that supports ERC20 tokens.
I store all my ERC20 tokens and cryptocurrencies on a Ledger Nano S, however, if you’re looking for something that’s free and convenient, MyEtherWallet is my next best pick.
Once you have your POWR tokens at an exchange, all you need to do is send them to your Ethereum address of the wallet for which you hold the private keys. You can track the transaction at Etherscan.io and once there are multiple confirmations, you’ll be holding your POWR tokens in a wallet that you control.