Powerledger (POWR), an Australian-based energy company, is gaining global attention for its use of a range of blockchain solutions to try to change how energy is bought and sold between customers. The company is making sure to take firm steps towards its mission of revolutionizing the renewable energy markets. The project shifted to the Solana blockchain last year, which has high scalability, from using Ethereum.
However, Powerledger’s local cryptocurrency, POWR, is on the market using the ERC-20 standard. This cryptocurrency, along with the Sparkz token, maintains the ecosystem’s continuity. Green energy is becoming increasingly important for all countries worldwide, particularly due to the climate crisis. Many companies and governments are taking various steps to transition to clean energy. So, can Powerledger become a decentralised leader in the clean energy sector? This article on Zatrun.com you can find everything you need to know about the project.
What is Powerledger and How Does It Work?
Imagine getting all the energy you need to sustain your life without relying on big public service companies. Thanks to Powerledger’s decentralised applications, this world could become a reality soon. The project, which is a blockchain-based platform, enables local areas to sell solar energy to their neighbours without the need for an intermediary. It also plans to create a revolution in the global energy industry with this service.
In a report dating back to 2015, Deutsche Bank noted that at least thirty countries worldwide had already achieved grid parity. This means that the price of electricity generated by solar power is equal to or less than the cost of local retail electricity. Powerledger aims to use this accessibility in green technology. The project combines innovations in solar energy and blockchain development to offer a cleaner, cheaper, and more sustainable energy solution than traditional energy alternatives.
The most significant feature that sets Powerledger apart from other energy-related applications is its use of blockchain technology. As a result, the project can track each electricity unit. This tracking begins from the moment green energy is generated and continues until it is sold to or used by another consumer through the local area’s electricity distribution network. Through the blockchain, the company can also track the financial aspects of energy.
With these advantages, the platform provides simplicity and security for those who use renewable energy. All energy traded peer-to-peer (P2P) using the distribution network is tracked. This provides a secure income stream for energy sellers. This also allows those with tokenized renewable energy to set their prices and choose whom to sell to. The platform has already implemented a range of services, such as “East Village Precinct.”
What is Sparkz and POWR?
Sparkz is the market-level cryptocurrency used by Powerledger for energy-sharing participants to facilitate peer-to-peer (P2P) transactions. It is priced according to the fiat currency of the country in which it is used. POWR coin can be converted into Sparkz for use within the market.
POWR is the primary cryptocurrency of the Powerledger ecosystem. The asset serves as a contract token that users must purchase to gain access to any Powerledger platform. The cryptocurrency, which operates on an ERC-20 smart contract, can also be used for various purposes as an “access permission token.” For example, suppose a homeowner wanted to create an energy-sharing market like East Village Precinct. In that case, they would need to purchase POWR coins to provide sufficient liquidity in the market.
In September 2017, POWR completed its initial coin offering (ICO), raising over $25 million by releasing 35% of its maximum supply of one billion POWR coins. Today, the project ensures the deflationary nature of the cryptocurrency through token-burning operations. According to a previous report, the company burned over 2.7 million POWR coins from 2017 to 2019. However, the blockchain recently transitioned to an energy-efficient Proof-of-Stake mechanism, which means POWR coin can now be staked.
Is POWR a Good Investment?
In July 2021, Powerledger announced its transition from Ethereum to Solana, citing Solana’s advanced scalability and efficiency. However, POWR coin remains an ERC-20 standard. The company also transitioned to a Proof-of-Stake (PoS) model to increase network security, meaning that users who stake POWR will be rewarded. In the future, the project plans to launch new projects worldwide, including a partnership with BHP in Chile within the next three years.
The continually growing demand for green energy could lead POWR coin to become a leading asset in the industry. However, there are also a series of challenges brought about by increasing demand. Many countries are currently working to regulate green energy markets, which could result in banning Powerledger. POWR, which is currently the 297th largest blockchain project, is trading at a unit price of $0.15. The asset reached its all-time high of $1.81 in 2018.
