Blockchain technology has the potential to solve existing issues and improve efficiency, not only in finance. This article will summarize the results of our research on and introduce the project “MyBit,” which aims to improve the efficiency of energy trading.
What is MyBit?
With the advent of Artificial Intelligence (AI) and spread of IoT (Internet of Things), electricity consumption is expected to increase dramatically in the future. However, large-scale power facilities such as conventional thermal and hydroelectric plants aren’t able respond flexibly to fluctuating demand.
With the proliferation of solar panels and other similar private energy solutions, it is now possible to produce energy on a smaller scale. Such small-scale power generation facility are called “micro grids.” MyBit aims to create a “distributed energy grid” by enabling users to exchange electric power from micro grids installed in homes, office buildings, etc. in response to demand from other users’ energy consumption.
MyBit’s Revenue Sharing Model
MyBit is built on the Ethereum blockchain and uses smart contracts to exchange revenue. The two major aspects are a.) landowners installing microgrids and b.) sharing income made through power sales. First, the owner of the land requests contributions to use towards installing a natural energy micro grid. Next, the income from sale of electricity generated by the micro grid is distributed to the landowner, and a dividend of the 1% transaction fee is distributed through smart contracts to investors (token holders). It is thereby possible to install micro grids all over the world with no location or time limitations. Furthermore, profit distribution to investors and the landowners are faster and more transparent.
By removing the installation costs of microgrids through corwdfunding, MyBit has removed barriers caused by start-up costs, thereby allowing a scalable, sustainable model for energy supply.
Electricity demand is projected to increase significantly due to the development of AI and IoT, but what is MyBit’s reason for focusing on microgrids utilizing renewable energy? Among the numerous available energy options, renewable energy is seeing perhaps the greatest growth and certainly faces the highest anticipation.
In 2008, renewable energy was only about 16% of the total energy supply. This figure grew to approximately 22% in 2013, according to the IEA mid-term renewable energy report of 2015. Around 2020, this number is expected to reach a minimum of 26%.
Currently, it is difficult to store natural energy equipment that can generate a high capacity of power; however, if it becomes possible to manage power grids and distribution automatically by AI technology, it could lead to not only cost reductions and stable supply of electricity, but also eliminate energy waste. MyBit’s vision for decentralizing energy generation and consumption is intended to positively impact on the environment while also enabling private individuals to earn an incentive.
This model has raised concerns about security – such as electricity usage and power transmission destination – and MyBit has promised a response report in the future.