Hive Power: Secure Energy Tokenization

Nowadays, we are lucky to monitor the changes in the energy field, which tries to switch from its centralized scheme to a decentralized one. Such resources, as wind or solar energy, are disseminated according to this decentralized scheme. For that reason, new institutions or households arise and produce redundant power. They submit this extra energy to the distribution system. If, let’s say, their energy needs exceed their own manufacturing, they utilize the energy from the above-mentioned source. The road to that power grid, guided by so-called prosumers, can be very painful. And here is why. There is no centralized planning. For that reason, the expansion of the fitful electricity on the lower layers of the network because of the solar generation’s break-in causes the increased stress on the distribution electric grid. As a result, various serious issues concerning the electricity quality may arise. The operators of the distributive networks simply will not be able to cope with the line overloading and voltage disruptions. These problems become severer as the electricity usage increases with the growth of the electrical heaters and electric cars. As a result, the power volatility within the network also increases.

In order to solve that problem, it is necessary to attract essential investments to the network framework. However, this may cause a so-called “grid defection”, while the prosumers consume less energy from the central grid and use more of that they produce. Moreover, they are likely to install the batteries for becoming totally independent.

They will apparently rely on the central grid, while they still have to use the peak power, or the emergency one. For that reason, the electric power companies will have to use their high-cost framework and power generation even if their income of the power usage is lower.

According to that scenario, those who consume the power will have to pay more for a non-effective grid. It doesn’t seem to be a good perspective.

Solution

Hive Power suggests utilizing the blockchain technology for allowing the decentralized producers and consumers to purchase and sell the energy to one another in a secure way at a reasonable price. This is the energy grid of future, which means that the consumers can share the energy with one another and with the electricity companies. The usage of the energy resources and infrastructure will be also optimized.

The new aggregators which will use that technology will play the role of the energy suppliers and will be able to compete in the international market.

Hive Power suggests creating and managing the domestic energy communes based on the blockchain. The aim of it is to cut the bills of the system participants and save their assets. The energy will be tokenized in a safe way thanks to a blockchain-based electricity meter. They implement this together with meter manufacturers.

Do they differ from their rivals? Definitely, yes. They provide the trading mechanism of the efficient energy, which is adapted to the energy communities use case.

The Hive Power platform is in a free access for the hard- and software providers. Also, it meets all the electricity quality restrictions. Its design contributes to collaboration between the consumers and dissemination of the solar energy. Besides, it can ensure the safe operation and best control of the funds.

The company provided 100 000 000 tokens for sale. The currency accepted is ETH. 50% of tokens were to be distributed during the ICO.

The token sale finished on the 30^th of June.

Concept

Hive Power is a sort of a framework, the members of which ate active energy consumers. The structure of the digital hive is similar to the real-world hive’s one. As well, as the latter, this hive contains certain units, including Workers and the Queen. The workers are certain prosumers and the Queen is a core unit managing all the processes within the hive.

What are Workers? They, actually, are usual smart meters operating in homes of the participants. They give the information on the manufacturing and consumption of the energy constantly. But that’s not the only their task. They also provide forecasts of the energy amount the prosumers are most likely to spend or supply.

The Queen is, actually, an intermediary between the grid and the hive. The Queen utilizes the information provided by the Workers, calculates everything and provides monetary settlements. The Queen also has to make the most accurate forecasts of the likely volume of the consumption of the electricity.

The hive also has its own Administrator. He controls the hive manually. The Administrator is, actually, an operator responsible for the operations within the hive. He also arranges the money management between the hive members. For that reason, the energetic company doesn’t have to control each of the members apart. It is very convenient.

The Hive Power is a project, based on blockchain and their plans contain the utilization of two token types. HVT token is the Ethereum-based token, the value of which is identified by the market and even can depend on the performance or popularity of the platform. They serve as means of exchange, for example, when the members wish to vote.

There is another token type, which will be attached to fiat currency in order to exclude its volatility. For that reason, it can’t be used as means of exchange. These types of tokens will be used just for various monetary arrangements with the members, for example, getting money for energy and paying the energy suppliers.

The token holders are secured from any losses connected with that type of token, while it’s pegged with the stable fiat currency.

There are not only two types of tokens, but also two types of smart contracts used by the platform, including the Hive and Beekeeper. They represent a set of rules for the platform operation.

The Hive Power platform has its laws which are predefined. The members should act according to these rules; they have their responsibilities and rights.

The Hive Power team is pretty young and not big. But it consists of the specialists with a large experience in the energy field. They, respectively, have enough knowledge to implement the project. The platform interface is very user-friendly and easy to navigate. Its core aim is to create a decentralized anonymous platform for communities, the participants of which will profit from their involvement and create the best technical and financial conditions for the whole community.