EFFORCE is the first Energy Savings Company (**ESCO**) that uses blockchain to enable energy savings trading using its platform. The goal is to reduce energy consumption, making no sacrifices to our existing requirements by increasing energy efficiency.
Energy intensity measures energy inefficiencies in the economy, it is the unit of energy used per unit GDP. It might seem trivial, but energy efficiency can have a profound impact on the economy and climate. Look at these stats —
According to International Energy Agency, The 1.2% improvement in energy intensity in 2018 equated to around $1.6 trillion more GDP for the amount of energy used compared to 2017.
However, global energy efficiency improvements are slowing and we are well below the required 3.6% growth to achieve sustainable development goals. This can change with the advent of EFFORCE.
Why EFFORCE is different
Traditional ESCO’s face multiple problems.
They require large investments for assessing complex energy-efficient systems and smart meters to monitor them.
Because of the limited technical knowledge of financial institutions, they cannot measure return on investment and thus ESCOs do not have access to capital.
There are constant trust issues between the investors who expect ROI and businesses who need energy-efficient systems, and there is uncertainty in the pay-back period on investment.
To overcome these hurdles, companies can use EFFORCE to receive crowdfunding necessary to improve their energy efficiency for a part of savings generated through the advanced system.
EFFORCE uses its blockchain trading platform to allow anyone in the world to fund energy savings projects for return on investment. Anyone looking to improve the energy efficiency of their industrial processes can register the request on the platform. After evaluating the required investment, annual internal rate of return, and other requirements, an Energy Performance Contract (EPC) is created.
Through these EPC contracts, savings derived from the more efficient system gets distributed between the party who improved the efficiency (EFFORCE), the contributors who pooled in funds (Token Holders), and the beneficiaries enjoy an energy-efficient system with more savings (Companies).
At the end of the contract, the Beneficiary enjoys the full savings and the new technology
Role of Blockchain
Blockchain guarantees the integrity of energy savings obtained from each project. The data from smart meters and sensors will be validated to guarantee the energy savings obtained.
Blockchain reduces the complexity and cost of managing various middlemen and third-party intermediaries, making the process efficient, hassle-free, and optimizes the cash flow. This also reduces delays and payment issues, which can affect the whole timeframe of the project.
Blockchain enables tokenization of saved energy, which creates a liquid/transparent market, making it possible for anyone to take part without equity and capital barriers.
The white paper says — the innovative tokenization model has been clarified by the European regulator. It is structured as a reward-based crowdfunding, where Contributors are rewarded with free energy savings that they can keep, sell or use to offset their energy consumption.
Energy Performance Smart Contracts
Investopedia says - A smart contract is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code. The code controls the execution, and transactions are trackable and irreversible.
Energy performance smart contracts guarantee the savings obtained from specific energy efficiency projects. The savings are tokenized so it can be traded or used to offset the electricity bills.
Smart contracts give companies the ability to sell future energy savings in advance, which provides liquidity to finance efficiency improvement projects.
EFFORCE (WOZX) Token
EFFORCE is the name of the token, and WOZX is the symbol. EFFORCE is an ERC-20 utility token on the Ethereum network. These tokens can be used for voting rights and make decisions in the network, such as the ratio of redistribution of energy savings and affect the whole platform ecology.
According to Blockchain.com - An ERC20 token is a blockchain-based asset with similar functionality to bitcoin, ether, and bitcoin cash: it can hold value and be sent and received.
The supply of this token is limited to 1 Billion tokens and no more tokens will be created. These tokens will release according to the Lock-up policy. According to the current redistribution ratio, at least 1% of the total energy savings will be redistributed amongst the token holders based on the number of tokens they have.
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