EWT has been discussed pretty frequently the past few weeks. Today we explain Energy Web to you in a 5-minute read. First, Energy Web is a global nonprofit organization. They describe themselves to be accelerating a low-carbon, customer-centric electricity system by unleashing the potential of blockchain and decentralized technologies. So let’s dive into it and find out what that means.
EW launched the Energy Web Chain in 2019. The EWC is a public blockchain platform, designed for the energy sector. It’s the first of its kind and has been used by large partners ever since its launch. EW aims to include a decentralized operating system (DOS) to the platform, which is pretty interesting. The DOS is open-source and offers decentralized software and standards, allowing partners to share technology that is running on a decentralized network, maintained by some pretty large well-known companies (more about that later).
The DOS has two main use cases. Clean energy and carbon emissions traceability, and using distributed energy resources to increase grid flexibility. With the DOS their goal is to enable their partners to not just share technology, but also built low-carbon electricity systems.
EW states to offer three solutions for renewable energy markets, demand flexibility and electric vehicles.
As their website does a great job on briefly describing these use cases, I’d recommend you to check the following pages out:
Possibly one of the biggest reasons EWT has been on so many people’s radar, is because of their huge list of incredible partners.
A full list of their partners can be found here: Our Ecosystem – Energy Web.
It includes companies such as Shell, AES, Tenaska, and many more of the world’s most influential energy companies. In one of their most recent Medium posts EW announced a partnership with Vodafone to bring iOT and blockchain technology to renewable and distributed energy assets (Vodafone Business and Energy Web Collaborate to Bring IoT and Blockchain Technologies to Renewable…).
The native energy Web Token (EWT) is used to pay for services offered by EW, for example to pay for transactions within the ecosystem and other EW-DOS services. The EW Chain also supports all ERC standards, including ERC20 tokens, ERC721, ERC1888 certificates and many more.
Since the launch in 2019 (June), the EW Chain has executed close to 24.7 million transactions (https://explorer.energyweb.org/) in over 10.5 million blocks, with an approx. Upper boundary of transaction fees of 0.00015 EWT. Meaning it doesn’t cost more than a few cents to fill a block with transactions.
Users can interact with the EW Chain without needing to hold EWT directly, while a delegated proxy node automatically pays for transaction fees in EWT once transactions occur.
EW offers a bridge to swap EWT tokens between the EW Chain and main Ethereum network, the bridge can be found at: https://bridge.energyweb.org/
As for token distribution, 100,000,000 EWT will be ever in existence and is distributed as follows:
Unclear to me (at first sight) is when these lockup periods started, and so when these tokens will be unlocked. Therefore, it is unclear to me how many Energy Web Tokens are currently in circulation and being traded on secondary markets. However, a bot in their Telegram channel states that today (June 17, 2020) about 47 million EWT are in circulation. However, 24 million EWT are held by large energy companies, 23 million EWT were in private funding to affiliates and the initial token distribution comes from validators and first-round members.
This means that the actual circulating supply on exchanges is much lower, and hence it seems to be a scarce token that has increased in price so much for this particular reason.
It’s clear we’re talking about a promising project here, as many others have discovered recently (EWT has seen a price increase of 320% in the past 30 days). It’s also clear that the energy companies holding EWT won’t be selling anything any time soon, as they will need the tokens to use the EW solutions.
With a circulating supply of 33 million and a price of $16.92 per EWT, EWT is ranked #97 at the moment in terms of market cap (+-$564M). Regardless of Energy Web being a promising project, I will hold off of purchasing any EWT at the moment until either the price is down or until more tokens are being traded on secondary markets.
I personally find the risk of holding a token that has increased so much in the short-term, and that is scarce due to partners and affiliates holding their tokens too high. I understand various of you might have a different opinion about this. However, I always stick to investing into the things I know about and I am not sure yet how to deal with the current situation here. Hence, I’ll first do more research and reading before purchasing any EWT at all. And, I’m looking forward to discussing this matter more with you all on Telegram!
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