This article is by Blockchain Training Alliance
There are nearly 1.2 billion people worldwide who are living without electricity. The majority of the unpowered population resides in developing nations in Africa and Asia, as well as island nations impacted by hurricanes. A blockchain platform called ImpactPPA, a renewable energy delivery system, will soon help make energy more accessible worldwide.
Current Energy distribution and financing are hindered by inefficient systems of paperwork and bureaucratic policies. The funding process for clean energy projects in developing countries is very costly and cumbersome, which leaves many countries with inadequate access to power.
A blockchain system could bypass these bottlenecks and deliver power on demand, directly to consumers. ImpactPPA, built on the Ethereum platform, decentralizes power purchasing with a blockchain smart contract called a SmartPPA.
ImpactPPA, led by CEO Dan Bates, is a company that has been working in the renewable energy industry for over 10 years. The organization currently has wind and solar projects operating in 35 countries. With 200 megawatts of power available, ImpactPPA is ready to begin distributing power around the world through blockchain transactions.
How does the blockchain energy platform work?
The ImpactPPA platform is a blockchain technology built on the Ethereum platform, a major cryptocurrency that supports smart contracts. Blockchain technology is a distributed ledger system that manages data and currency without any central administration.
The term blockchain comes from the fact that the digital ledger is composed of blocks of encrypted data that are chained together. This forms a permanent record that is duplicated and distributed on computers throughout the world. The result is a very transparent, decentralized and self-managed system with a lot of trust and security. The first blockchain system was the Bitcoin currency system, but the technology is now being used for many other purposes in order to streamline business and technology processes.
The ImpactPPA blockchain platform uses smart contracts for funding power projects and a token system that allows power to be added quickly to grid systems. The system also provides a method for consumers to buy renewable energy on-demand through units of energy production credits.
The SmartPPA contract is the cornerstone of the blockchain system. It enables anyone, anywhere in the world, to create a proposal for an energy project. The smart contract eliminates the traditional bureaucracy and paperwork needed to get a proposal into production. The result is a process that would traditionally take years can be completed in a few months.
The ImpactPPA system generates tokens, called MPAQ tokens, that investors use to vote on and fund energy projects proposed through SmartPPA contracts. When energy is produced, the system generates units of currency for purchasing energy called GEN credits. Consumers can pay for energy as needed with GEN credits, which helps to provide more funding to create new SmartPPA contracts.
ImpactPPA allows anyone in the world to access clean energy on a mobile device, but the project is primarily focused on providing energy to the enormous population of people who live without power in developing nations. The ImpactPPA group is currently working with organizations in Haiti to provide power to communities hit by Hurricane Matthew. The first sale of MPAQ tokens is scheduled for April 22, 2018, which coincides with Earth Day.