A new project called SolarCoin Digital Currency will make an investment in solar energy. Anyone sitting on the fence about solar may find this a little bit more attractive. I’s a brand new digital currency of the Bitcoin ilk. The creators will offer the coin to anyone who can prove they are generating electricity. As a result, each megawatt-hour of electricity that your solar panel pumps into the grid will earn you one SolarCoin.
The goal is very simple. SolarCoin will help make more solar energy. Dispursing SolarCoin to solar electricity producters will help amplify the spotlight on Solar.
To that end, SolarCoin Foundation volunteers began verifying electricity production claims in a pilot program this January. A third party reads each applicant’s meter to determine the amount of coins granted. The coins are then disbursed from a reservoir of “pre-mined” coins that the foundation has on hand.
The Evolution of the SolarCoin Currency
This feature is a major modification of the Bitcoin protocol. It is a prime example of how quickly digital currencies are evolving to fit new needs. With Bitcoin, every coin that will ever exist must be created by a public community of miners. Furthermore, they contribute computing power to the task of securing and verifying Bitcoin transactions.
Anyone may join BitCoin at any time. More than 99 percent of the coins were created internally with SolarCoin. This was ever before the project went public. This lets the foundation have nearly total control over the supply. The remaining fraction of a percent out of the foundation’s hands goes to miners. The SolarCoins are given as incentives to maintain the payment network.
Creators hope that SolarCoin will one day become a powerful influence on people’s decision on whether to go solar or not. However, he expects it to happen in phases.
The reality is the coins are going to be granted over 40 years. The solar community sees it as a reward and acknowledgement for good deeds done. The future community may say, wow, this is a very interesting financial incentive.
Questions about SolarCoin’s Viability
How do digital currencies attain value in the first place? More importantly, how do people choose to use one digital currency over another? Why would someone accept SolarCoin for payment when they could just take Bitcoin? It’s not like it solves any new technological conundrum the way Bitcoin did. The success of a project like SolarCoin depends entirely on the answers to some important questions.
The value of the currency will come simply from widespread adoption of the program. Again, treat SolarCoin like a brand to make this happen.
Bitcoin establishes a network effect by attracting a core community of passionate and vocal adopters. SolarCoin will have to do the same to succeed.
The photovoltaic electricity production going down. Solar electricity will be able to compete with fossil fuels by 2023. The federal government is providing tax incentives to those who install them. Making a rosy future for solar energy
Solar Electricity Farms
One group getting in on the SolarCoin game are large solar electricity farms. Individual homeowners are beginning to play around in the world of SolarCoin as well. Lisa Shock, who lives in Phoenix, Ariz., was the first person to have her electricity output verified by the SolarCoin Foundation.
“I have read about Bitcoin over the years, but never really got involved,” she says. “I have friends who have been mining and trading for several years, and I guess that I was always a little skeptical about investing serious amounts of wealth into it. SolarCoin appealed to me because I could get coins for energy that my system had already produced…and the goal of encouraging more people to go solar aligns with my personal values.”
If digital currencies are to become brands in the future, then it will be people like Shock who do a lot of the marketing for them.
“I know that more people certainly need to hear about it, especially those who already generate solar energy,” she says.