The way in which we use and produce electricity as a society is drastically changing. The introduction of new technology such as solar cells has made it possible for us as consumers to create our own energy. But that the solar cells become so effective that we even have energy left over. Suddenly there is a need for a method to exchange energy that we keep, and sell it to our neighbors or network!
Powerledger is a Blockchain that with its cryptocurrency POWR wants to form that platform for the future, taking the first steps towards a democratic electric grid!
There is currently no way to buy POWR directly. So the only way to buy POWR is to purchase BTC to use on an exchange, and then switch it to POWR.
Step 1: Choose Your Trading Platform
Firstly you will need to decide on your cryptocurrency trading platform and create an account there. The choice of platform isn’t very important as a beginner, what really matters is a trading platform that you are comfortable using..
Choose one of these platforms and complete the follow steps to get started:
Go to Binance and create a new account if you do not already have one.
Once your account has been confirmed, log in to your Binance account and click on funds at the top right, then “Deposits Withdrawal”.
Look in the “Bitcoin” list and click the Bitcoin deposit button. Then a series of numbers appears in the “BTC Deposit Address:” field. You must copy this series for the next step. This is your bitcoin wallet address.
STEP 2: BUY BTC
The second step is to get your Bitcoin, you can do that at a broker such as BTCdirect .
If you’re buying BTC for the first time from these brokers, you will be asked to confirm your bank account.
Upon payment you will be asked to enter a bitcoin address. You must fill in the address that you have copied at Binance.
STEP 3: WAIT UNTIL YOUR BTC HAS ARRIVED
Once you have purchased Bitcoin and entered the correct BTC deposit address with the payment, you have to wait until the BTC arrives in your wallet.
This process can take up to ½ hour, so don’t worry if it’s not immediately visible on the exchange.
STEP 4: BUY POWR
Once your Bitcoin has arrived at your trading platform, it’s time to buy some POWR.
Go to the Binance trading exchange (click the top left on exchange and choose Basic) and use the search function within BTC Markets to find the POWR/BTC trade.
Once on the POWR/BTC trade page you can look in the left box marked with Buy POWR. Here you can decide how much POWR you want to buy using your Bitcoin.
If you then press Buy POWR your order will be placed. When the order is filled you will see your number of POWR on the right-hand box or on your balance page.
Congratulations you’re now the proud owner of POWR.
A revolution in energy
In recent years much has changed in the world of energy. In 2017 we are much more strict about looking at the sustainability of our energy source as a society. The world is asking for a switch from ordinary energy to green energy. We are starting to see more and more as a society that large nuclear power stations have to be replaced with Windmills and solar cells.
In addition to a sustainable future, these changes that our society is experiencing have also had a different effect. Where in the past the image of our electrical needs was very much a directional picture. In other words, you had an energy supplier that supplied your house with electricity. What you paid for then. This energy supplier basically had all the power over how the power was delivered and what that would cost. But through the introduction of solar cells. Which meant that a consumer could create his own energy. Starts changing this traditional image quickly.
In contrast to one central grid, small grids are being created. The power of energy moves from supplier to consumer. The consumer is now not only able to produce his own energy with the help of solar cells. But the consumer can even return the abundance of energy they create to the system. What they have to be compensated for.
What often appears is that the energy suppliers do not yet have fair compensation for this abundance of energy that is supplied to the consumer. The question is why is an intermediary needed to maintain these transactions at all? Why is it not possible to sell your abundance of kWh for a fair price to your society? Without a central management deciding what your electrical power is worth?
The team behind Powerledger realised that with the help of Blockchain technology the energy grid can become a decentralised network. One where the consumer can honestly sell his abundance of energy to the network!
What is Powerledger
Powerledger is a blockchain based peer-to-peer energy trading platform. What makes it possible for consumers and businesses to sell their abundance of solar energy to their neighbors and society without the need of an intermediary.
The concept is in principle comparable to AirBnb or Uber in addition to the “trustless”. Where one has the possibility to monetize their own car or rooms.
A trading platform that can deliver millions of transactions within a 5-minute interval without a third party was impossible a few years ago. This is indeed possible thanks to Blockchain technology.
In contrast to a traditional method whereby a third party (such as Uber) is responsible for the trust they have in their network, ensures payment and determines which price and transaction costs the service may be used for. That is not necessary with a blockchain. This makes it possible to maintain a decentralized database and to keep a list of all transactions that are placed in each block in its chain.
Powerledger is this ‘trustless’ blockchain platform with its own energy trading token Sparkz.
Dual token ecosystem
The Power Ledger Token (POWR) is the fuel of the Powerledger ecosystem and similar to what Ether is for Ethereum Network. The POWR token offers users access and use to the platform. Similar to a software license. POWR can also be exchanged to Sparkz within the network. This possibility also exists for third party users of the network, where the ratio of conversion between POWR and Sparkz depends on the service of the third party (based on feedback and reputation of the users).
Sparkz is a basic token and is specifically limited to representation as the basic token of a single unit of electrical power in every local market. What that means is that every local market has its own value for Sparkz. For example, 1 Sparkz = 1 euro cent and 1 Sparkz = 1 AUD cent in Australia.
A user can buy and sell energy using Sparkz and convert it back to POWR for their payout.
With the term application hosts, Power ledger refers to energy suppliers who also use the network for buying and selling energy. For energy suppliers POWR will not only give them access to the network but also the smart bond functionality.
Smart bonds are automatic contracts that use Ethereum’s smart contract technology. A smart bond has a built-in code that maintains the agreement of both parties
The POWR that is delivered is held in these smart bonds in Sparkz, the POWR is only released on the return of the Sparkz. The expectation is that the application host will always have a greater need and demand for POWR. So that they can facilitate their transactions between them and their customers.
As a result, more and more POWR is stuck in a Smartbond for Sparkz, resulting in a larger organic demand for POWR.
Why invest in Powerledger?
The power ledger platform has a hugely passionate and experienced team behind it. In addition to Blockchain experts, and full stack developers, there are also energy experts in the team.
In addition, the team also employs people who are engaged in nothing more than informing society. It is of course just as important that consumers can make the switch easily and be guided in this with this new concept.
The first time Powerledger was tested was from August to December in 2016, in Busselton. In this exercise, 15 households were deployed within the network, half of which had solar panels and the other half did not. Not only was the test completely successful, but the Power Ledger network also showed that households without solar cells were still cheaper compared to a traditional energy supplier!