The Beginner’s Guide to Energy Web Token the Digital Cryptocurrency of the Energy Transition
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The Beginner’s Guide
The Energy Web Token is the native cryptocurrency of the Energy Web Chain. An open-source platform designed to support the development of energy sector applications. EW Chain aims to build a more traceable, democratized, and decarbonized energy system.
Historically, grid operators have provided the physical infrastructure to enhance electrical power usage and relieve reliance on carbon energy consumption. The Energy Web Chain (EW Chain) aims to provide the digital infrastructure connecting grid operators, customers, and physical assets (like solar panels, thermostats, and electric vehicles).
Energy Web’s Technology Stack
The Energy Web Decentralized Operating System (EW-DOS) is central to running the EW Chain. EW-DOS is a stack of technologies designed to connect participants within the energy market to increase grid flexibility.
The Energy Web Token (EWT) is key to the network’s operation. EWT is used to compensate key network operators and allows those who hold it to pay for decentralized application services built on the platform.
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Who created Energy Web Token (EWT)?
The Energy Web Foundation (EWF) is a non-profit organization that built and developed the Energy Web. It was founded in 2017 by Rocky Mountain Institute, Grid Singularity, and ten other affiliates.
The Energy Web Foundation has conducted several rounds of funding over two years. It has raised approximately $20 million and sold 21 million Energy Web Token (EWT coins). The EWF officially launched its Energy Web Chain in 2019.
Over time, Energy Web has grown to over 100 partnerships, including industry giants Tepco, Siemens, Shell, and Exelon.
How does Energy Web Chain work?
The Energy Web Chain applies features common to many cryptocurrencies to build the network. For example, EW Chain has a shared infrastructure, an incentive scheme, and a traceable information log.
The EW Chain derived its blockchain code from Ethereum’s to focus on functionalities affecting the energy sector rather than recreating an entire infrastructure.
Sourced from Real-World Data
Due to the Energy Web Chain relying heavily on real-world data, it’s worth noting that the platform integrates middleware technology into its architecture. These include oracles, bridges, and a digital identity system.
The oracles deliver real-world data to EW applications. EWT holders can utilize bridges use EWT on other blockchains. The digital identity system allows users to have persistent identification across Energy Web applications.
Proof of Authority
Energy Web uses a variation of the Proof of Work consensus mechanism to keep its network in sync, called Proof of Authority (PoA). This maintains EW Chain’s distributed network in sync.
While not structurally different from PoW, the PoA mechanism only allows a certain number of nodes to validate transactions and create blocks, called validator nodes. Furthermore, these validator nodes must meet specific eligibility criteria. For example, they must be a legally registered organization and an official member of the Energy Web Foundation.
Incentives for EWT Holders
Once a validator gets their block in the Energy Web Chain, Energy Web Tokens (EWT) incentivize them to perform honestly.
Why Does EWT Coin Have Value?
The Energy Web Token EWT cryptocurrency is crucial in maintaining and operating the Energy Web network. Use cases for EWT include holding, sending, or interacting with applications.
By owning EWT, users gain the ability to participate in the suite of products and services. All of these are within the Energy Web ecosystem. They can also send EWT to any other participant on the network.
Rewards for Energy Web Token Validators
Energy Web rewards validators with Energy Web Token based on programmatic rewards and fees attached to each transaction included in a block.