How can we apply blockchain and tokenization to the energy industry? – News

Solutions have the potential to transform the sector

The energy sector is in the early stages of adopting blockchain and tokenization to create a more sustainable and environmentally friendly industry. Blockchain technology can be used for various purposes, such as energy management (collection and accounting of production data) and investor engagement.

By simplifying processes and reducing energy use, blockchain can help reduce emissions and make the energy sector greener. As the industry becomes more familiar with the potential applications of blockchain technology, it is expected that its integration will lead to further environmental benefits.

Khaleej Times spoke to Peter Bahorecz, Network Manager, SunMoney Solar Group, to understand how the nascent technology can help ensure a greener future. Excerpt:

Is the renewable energy industry on the brink of a transformation?

The renewable energy industry is truly on the brink of a transformation, and one of the growing drivers is the rise of blockchain technology and artificial intelligence. These advances have the potential to change the way energy is produced, distributed and consumed, leading to a more sustainable and efficient industry.

How can we create wealth while helping to save the planet?

Creating wealth while helping to save the planet can be achieved through initiatives such as community solar programs like ours. The main goal of our community solar program is to get people to care for the environment and know that they can actually make money doing it. As the community grows, more solar farms are included in the program and more shares are purchased by members, resulting in increased monthly income for participants. This situation promotes both economic growth and environmental conservation, making it an attractive option for those who want to support a sustainable future. Such a program encourages people to invest in environmentally friendly projects that align with their financial interests.

How does the energy sector use blockchain and tokenization to benefit the environment?

We at SunMoney Solar Group are taking one of the first steps in this area. Unfortunately, many in the industry do not yet know how much blockchain technology can be integrated and the potential it holds.

Peter Bahorecz, Network Manager, SunMoney Solar Group

How would you describe the transition to renewable asset tokens?

The move towards renewable assets can be seen as a good step to protect savings against inflation. For example, our tokens, SDBN1 and SDBN2, can be considered deflationary tokens since they have a limited issue, ensuring stability and returns by continuously improving technology and adapting to market trends. Investing in renewable asset-backed tokens provides a hedge against inflation while supporting the growth of renewable energy sources.

How critical are tokens in today’s crypto market?

Tokens have become increasingly critical in the crypto market today. However, many crypto projects are based on vision rather than tangible assets. In contrast, tokens backed by real solar power plants, such as SunMoney Solar’s offering, provide a steady payout to token holders, making them more stable and reliable investments in the volatile crypto market.

Is there a specific reason/benefit that SunMoney Solar decided to move to the blockchain platform?

SunMoney Solar decided to move to the blockchain platform for several reasons. Our community solar program and business model has been in operation for nearly a decade. We recently introduced a new product in 2021 that integrates the community solar program with AI-powered online marketing to expand awareness and amplify the growth of the program. This new program is also designed with crypto investors in mind. We have incorporated three popular trends – solar energy, AI-powered sales systems for online marketing and blockchain technology. With the combination of this trio, we were able to set our company on a new path.

How does this work in the UAE?

The United Arab Emirates has been a pioneer in the use of blockchain and cryptocurrency. In 2020, it became one of the first countries to introduce legislation allowing the use of digital assets for energy trading. This move has opened up a number of opportunities for both local companies and international investors. Furthermore, the authorities are taking steps to ensure that blockchain technology is used responsibly within their borders by creating frameworks that promote a suitable environment for users, developing regulations around crypto investments and operations, as well as introducing measures aimed at fraud and money laundering. The UAE aims to become a leading cryptocurrency destination either regionally or globally and we share this goal of establishing ourselves as a pioneer in renewable energy for the crypto market. We are happy to help promote and raise awareness of renewable tokens, both through conferences and personal consultations.

How does a value-creating cryptocurrency token differ from a traditional cryptocurrency token?

Asset-backed value-creating cryptocurrency tokens differ from traditional cryptocurrency tokens in several ways. The main focus of these tokens, such as SDBN tokens, is not on the exchange rate, but on providing a stable, steady stream of income similar to dividend-paying stocks. This approach aims to reform the crypto market by offering stability, reliability and the benefits of blockchain technology, separating them from more speculative investments typically found in the crypto space.