For everyday consumers, we don’t often think about electricity on a deeper level. We turn on devices and lights when we need them, and that’s it for the most part.

But a huge problem in the world today is wasted energy. Specifically, the energy that gets wasted in centralized networks.

That’s where the Ethereum-based ERC20 token Power Ledger (POWR) comes in. POWR wants to make peer-to-peer (P2P) energy trading a reality.

So let’s dig in a little deeper and see just how interesting of a hold Power Ledger might be in 2018.

POWR

Image via Steemit

Real world implications: energy trading

With the worsening effects of climate change gaining steam, it’s becoming more and more paramount to 1) shift to green energy sources and 2) to optimize the efficiency of the use of these energies.

Alas, the POWR project is aiming to tackle both of these issues. Power Ledger will facilitate peer-to-peer solar energy trading, allowing users to earn money in trading their unused solar-generated electricity to other users. All backed by microgrids and the Ethereum blockchain, of course.

Accordingly, such a market should decrease the use of centralized electricity providers, as secondary markets crop up, well, just about everywhere.

Optimizing energy management

The unique aspect to Power Ledger is that their system tracks the use of individual units of electricity, thereby allowing for the trading of such units in a P2P marketplace.

This means there’s going to be a lot of data in play. But this also means that this copious trove of data will make it easier to streamline things like load management and demand-side response on a massive scale.

POWR successful so far

The POWR ICO started off with a bang in 2017, generating over $34 million USD in funds. But Power Ledger kept the fast start going, as the Australian government dished out a multi-million dollar grant to the Australian city of Fremantle to begin trialling the POWR platform.

And the future looks bright from here unsurprisingly. In the first quarter of 2018, Power Ledger is aiming to launch itsĀ Distribution of Growth Pool, a POWR disbursement that’s aimed at winning over new users to the platform.

By the end of 2018, Power Ledger wants to enable carbon trading. And by the close of 2019, the project seeks to enable wholesale market settlements.

Generalizing the promise of blockchain

Power Ledger takes the waste found in centralized electricity networks and then distributes and decentralizes resources in order to optimize the network and mitigate the waste.

This is but one novel use case, but you can imagine many others wherein blockchains can provide similar benefits anywhere and everywhere beyond the energy industry.

It’s a brave new world ahead. A world of tokenization.

A good buy for the year head?

When it comes to cryptocurrencies, there are different classes of cryptos. Bitcoin and Litecoin are currency coins. Ethereum and EOS are smart contract platforms. You get the picture.

But in tackling energy trading, POWR is in a class of its own for now. Therefore, not only is it boldly going where no one else has gone before, it accordingly has a first mover advantage.

We at CoinBureau can’t give financial advice. But in our view, it’s a good idea in general to diversify across different classes of cryptos. By that logic alone, POWR might be an interesting addition for portfolios.

As always, though, do your own research.

Featured Image via Fotolia

Posted by William M. Peaster

William M. Peaster is a cryptocurrency journalist and copy-editor based out of El Paso, Texas. He's an avid fan of Ethereum, ERC-20 tokens, and smart contracts in general.