What does the company/project do?
Eloncity is targeting the energy market with a blockchain solution. Climate change and the subsequent emergence of renewable energy sources have changed how energy is produced. Instead of big centralized nuclear and fossil energy production facilities, more and more smaller decentralized wind and solar energy plants come into appearance. At the same time many consumer of electricity start producing their own energy and turn from consumers into “prosumers”, producers and consumers of energy at the same time.
Better Battery Energy Storage Systems (BESS) enable smaller producers of electricity to better cover their own energy needs and interact with the power grid in periods of shortages of renewable energy production. This new energy system requires a new solution. Eloncity believes that blockchain technology provides excellent means for tackling the challenges of the new energy market. Eloncity proposes a decentralized renewable energy architecture enabling a locally produced energy exchange on a microgrid.
How advanced is the project?
Eloncity has already achieved significant press coverage in news outlets like Inc.com. It counts with an active Telegram and Reddit community. Eloncity provides one of the most detailed road maps in the ICO space. The public token sale of ECT, an Ethereum ERC-20 token initially, will take place in Q3 2018. The Eloncity energy exchange and smart contract platform is expected to launch in Q1 2019.
What are the tokens used for and how can the token value appreciate?
The Eloncity Token (ECT) enables energy exchange on an Eloncity microgrid that is compatible with the Eloncity Token Protocol. Supplying and consuming energy on the Eloncity network is paid in ECT tokens. Additionally the token protocol requires each entity to store ECT tokens in equivalent to the value of its electricity capacity in order to participate in the energy exchange. This requirement decreases the transaction velocity of the ECT token and a serves as a stabilization mechanism for the token. Eventually Elconity aims to make the ECT token the means of payment of an internationally unified renewable energy marketplace that connects various local communities with each other.
The total market capitalization of the ECT token will reflect the value of the electricity that is traded on the network. Eloncity estimates that the market capitalization of the ECT token could reach 560 million USD in 2040, expressed in 2018 USD values (correcting for the future inflation rate of the USD).
Team & Advisors
Andy Li is the founder of Eloncity. He has a technical background in computer engineering and previously worked as CTO for POMCube and ChinaCache among other technical roles.
Michael Nguyen is a Vice President of Eloncity and responsible for the Program Development. He has more than 30 years of professional experience in various industries and holds 17 patents.
The core team of Eloncity consists of 8 members including Andy Li and Michael Nguyen. The team has experience in software development, electric power design, cloud computing and hardware design.
The advisors of Elconity are Bryan Allen, Chris Whalley, Ensol Li, Haifeng Qu, Howard Choy, Michael Yuan, Robert Fortunato, Robert Mao, Kelvin Xu and Jasmine Zhang. The advisors bring lots of relevant expertise to the project giving their experience working for other blockchain projects and big tech corporations as well as in entrepreneurship, consulting and science.
The Eloncity Protocol is aimed to become the underlying software for electricity exchange among a local community. The protocol contains an artificial intelligence powered algorithm to determine locational real-time energy price equilibriums. The protocol is a distributed ledger that records all energy transactions and is verifiable and immutable.
Eloncity plans to use a Delegated Proof of Stake consensus mechanism. Eloncity’s blockchain will support up to 10,000 TPS (transactions per second) and a smart contract platform for energy exchange among community members. Further, there will be a sort of a mining mechanism that allows users of BESS (battery energy storage systems) that are compliant with the Eloncity Protocol to receive ECT tokens for storing energy.
Strength and Opportunities
Advantages of using the blockchain technology for managing energy grids are that the community receives an auditable record of energy generation and transactions. This way the members participating in the grid can always see who produced which quantity of energy and which transactions were made on the grid.
The transition from nuclear and fossil energy to renewable energy is currently underway in many countries in the world. Eloncity provides a solution for this new energy system with the corresponding challenges such as unstable energy production. The mechanisms of the Eloncity system help to flatten peak demands and to reduce energy costs for the network participants.
Weaknesses and Threats
Eloncity depends for its success on the adoption of local communities. Therefore it is crucial that local communities are open to use this new approach towards producing and consuming electricity. If local communities are reluctant to adopt the Eloncity protocol or token, because they reject blockchain technology, the fluctuation of the token value or any other reason, then it will be difficult for Eloncity to reach its goals. Also there may be regulatory constraints in certain jurisdictions that could make the adoption of the Eloncity platform difficult.
The specific use case of the Eloncity platform in a very fast evolving and prosperous market niche combined with the solid experience of the Eloncity team make this a very interesting project. Community management and marketing is managed well, which increases the likelihood of a successful ICO. Delivering the development milestones as planned in the roadmap and convincing enough local communities to adopt the Elconcity platform will be the crucial challenges that lie ahead in the next years for the Eloncity team.