Bitcoin

A blockchain pilot for energy trading with a Bitcoin sidechain is starting in LA

The energy and transportation startup EVShare will launch a community pilot project in Los Angeles to share energy.

The initiative, which received $ 20 million in partner funding and a $ 9 million grant from the California Energy Commission, is ready to test the application of blockchain technology in the management of a localized renewable energy network.

The system is based on the connection of local solar systems with electricity-based transportation to create a market for organic energy. The aim is to connect 50 households to a local power grid that will supply a group of shared electric vehicles with electricity.

A blockchain pilot for energy trading with a Bitcoin sidechain is starting in LA
A blockchain pilot for energy trading with a Bitcoin sidechain is starting in LA

A blockchain system based on the Bitcoin RSK sidechain and the RSK Infrastructure Framework and developed by the parent company IOVLabs will drive the sharing economy forward in this pilot project. Data on solar modules, energy storage systems, electric vehicles and charging infrastructure are recorded in the blockchain.

The data is used to support a trading market for emission allowances. Participants will be rewarded with tokens when they take measures that reduce their carbon footprint, such as: B. Bundling, generation and use of renewable energies and other unspecified measures.

The tokens are issued for power consumption and gaming to promote a circular economy for carbon credits.

The pilot takes off in Bassett, a parish in Los Angeles County. Local residents can download the Green Commuter app to register.

Eduardo Javier Muñoz, CEO of EVShare, told Cointelegraph that the project has been in the works for some time. “The energy coalition that leads the project leader has been asking the community to get involved in the project for more than two years,” he said.

Blockchain in energy

Muñoz said the blockchain is necessary for “Register, certify and validate transactions and carbon credits between assets in an automated manner through smart contracts.”.

The benefits also include increased transparency, while “using blockchain makes processes far more efficient, to a level that is frankly unknown these days,” he added.

RSK is a smart contract platform that uses a linked version of Bitcoin (BTC) as its native token and is merged with the Bitcoin blockchain to ensure the security of the mining ecosystem.

The project is relatively focused on business and government partnerships and recently announced a bank pilot in Argentina. In addition, a decentralized financial ecosystem is being developed that is positioned as Bitcoin DeFi due to the connection of RSK to the main network.

Other blockchain systems have been used in energy pilots around the world. In 2020, Cointelegraph reported on similar pilot projects to be launched in Thailand, Germany, Austria and Japan.

These were launched by a large number of companies in collaboration with partners and local authorities. However, the EVShare-led project is one of the first pilots of its kind to be launched in the US and has a greater focus on the energy consumption of electric vehicles.

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