The Energy Web Token (EWT) is the operating token for the Energy Web Chain, a blockchain-based virtual machine that aims to assist and accelerate the development of energy-related applications.
In June of this year, the Energy Web Chain was introduced. The initiative is managed by the Energy Web Foundation, a non-profit organization. By allowing developers to construct decentralized apps, EWT wants to diversify the energy sector (DApps). The virtual machine has the potential to assist players from all fields of energetics, including grid operators, software developers, and suppliers.
What is Energy Web Token?
The Energy Web Token, also known as EWT, is the native token of the Energy Web Chain. The Energy Web Chain is an open-source platform that aims to facilitate the development of energy sector apps by creating a more traceable, democratized, and decarbonized energy system.
Grid operators have traditionally supplied the physical infrastructure to improve electrical power utilization and reduce dependency on carbon-based energy. The Energy Web Chain (EW Chain) attempts to connect grid operators, customers, and physical assets through digital infrastructure.
The Energy Web Decentralized Operating System (EW-DOS), a combination of technologies aimed to connect participants in the energy market and promote grid flexibility, lies at the heart of the EW Chain’s operation.
The Energy Web Token (EWT), which is used to pay key network operators and allows users who have it to pay for decentralized application services established on the platform, is critical to the network’s operation.
Energy Web Token: roots and history
Rocky Mountain Institute (RMI) and Grid Singularity collaborated on the Energy Web Token project (GSy).
Rocky Mountain Institute (RMI) is a well-known name in energy research and development. RMI has been involved in a number of groundbreaking energy projects as a leading think tank. RMI sought to use the decentralized capabilities of blockchain technology to empower participants in the energy industry to build new decentralized solutions by developing the Energy Web Chain.
Grid Singularity (GSy) was invited in to help with the project’s blockchain expertise. GSy was the driving force behind the establishment of the Energy Web Chain as a blockchain developer. GSy was a crucial element of EWT’s debut, including recognized specialists, key Ethereum blockchain engineers, seasoned energy executives, and energy regulators.
How does Energy Web Token work?
The Energy Web Chain is constructed using elements seen in several cryptocurrencies, including a shared infrastructure, an incentive scheme, and a verifiable record of data.
In reality, in order to focus on capabilities impacting the energy industry rather than constructing a new infrastructure, the EW Chain developed its own blockchain code from Ethereum’s.
Because the Energy Web Chain relies heavily on real-world data, it’s worth noting that the platform’s architecture includes middleware technology like oracles, which deliver real-world data to EW applications, bridges, which allow EWT coins to be used on other blockchains, and a digital identity system, which allows users to have persistent identification across Energy Web applications.
Energy Web employs a Proof of Authority (PoA) consensus technique to keep its distributed network in sync.
While the PoA mechanism is structurally similar to PoW, it only allows a limited number of nodes, known as validator nodes, to validate transactions and create blocks. Validator nodes must meet certain eligibility criteria, such as being a legally registered organization and an official member of the Energy Web Foundation.
Validators are awarded with Energy Web Tokens (EWT) when their block is included in the Energy Web Chain to incentivise them to perform honestly.
The Energy Web Token
The EW Chain, like other public blockchains, has a native first-layer utility currency, the Energy Web Token (EWT).
The token has two key functions: a) it protects the network from bad actors, and b) it rewards validators through transaction fees and block validation prizes.
Beyond paying for transaction expenses on the EW Chain, users and application developers are not obligated to use EWT for their own applications.
They can employ cryptocurrencies, fiat money, and second-layer tokens that are exclusive to their apps.
Why choose Energy Web Token?
Energy Web’s energy-sector-specific range of goods and services established on its platform may appeal to users.
Businesses in the energy industry who want to create bespoke apps on the blockchain may be interested in the Energy Web Chain.
On the platform, a number of projects have already been developed. Zero, a marketplace for finding and sourcing sustainable energy, and Switchboard, an identity and access management application, are two examples.
If investors feel the Energy Web has the potential to disrupt the energy business, they may want to acquire EWT and add it to their portfolio.