First ‘Energy Balancing’ Protocol IOEN Raises $2.8M to Develop Greener Energy System

UTC by Julia Sakovich · 4 min read
First ‘Energy Balancing’ Protocol IOEN Raises $2.8M to Develop Greener Energy System
Photo: IOEN

IOEN’s plan is based around connecting devices that will connect all participants on the grid into virtual microgrids that will efficiently distribute power.

As the world’s demand for energy rises, a lot of new companies are emerging with the aim of providing a cleaner form of energy than is currently available. Green energy is a concept that has fast become reality over the past few decades. It is now the world’s cheapest form of energy. The problem is, however, that the more developed the world gets, the higher its energy requirements. With higher energy requirements also comes increased cost to either integrate more renewables or create significant costs for the environment.

A large amount of industrial waste, heat, and fossil fuel burning all come as a result of energy requirements, thus creating a chain where further development of mankind leads to the increased cost to the environment. With innovation being as natural to humans as breathing, it becomes evident that energy production and distribution is what needs to be managed. Renewable energy production has to some extent solved this problem. Solar energy, windmills, and many more sources of natural, cleaner energy have put the world on the path to a net-zero effect on the environment. But it is coming too slowly to provide the nearly two billion people on the planet with limited electricity access. Not to mention staving off climate change impacts, which have been driven by the way we have created electricity over the last 150 years.

The problem becomes that to walk that path massive investment is needed worldwide to fully integrate clean energy into our grids. The Internet of Energy Network is a project that seeks to bridge the gap between proper energy management and reduced costs. The IOEN team rather than focusing on the production of energy has instead chosen to tackle the inefficiency in its distribution.

Unknown to many, inefficient energy distribution is a significant problem in a lot of power grids. While clean energy will always be welcome for its positive connotations for the environment, the ever-increasing wave of energy provisions means that the power grids sometimes take on far more than they can handle. To combat this, IOEN is building a scalable solution based on Holochain, which will allow interconnection between devices to enable efficient energy distribution.

Fresh Influx to Capital to Scale Operations

IOEN’s plan is based around connecting devices that will connect all participants on the grid into virtual microgrids that will efficiently distribute power. The goal is to create a system that incentivizes energy-saving efforts all across the grid. Using a global energy token IOEN, with local credit currency,  IOEC, users will be rewarded for energy-saving and load shifting efforts on the chain leading to a ‘proof of balance’ model. This overtime will create a ‘hive-like’ outcome with all parts of the grid working towards efficient energy use and production.

In order to do so, it has successfully raised funding of $2.8M led by SL2 Capital. Other leading blockchain players and notable backers include Skyman Ventures, Insignius Capital, Holo, Black Dragon, Mashable, Maven Capital, Polygon (Matic), Twin Apex, ExNetwork Capital, Bullish Unicorn, Dizer Capital LLC, Holo, Solidum, and Extrwatts to drive its mission of a greener energy system.

The team at SL2 noted:

“SL2 Capital is proud to be supporting the Internet of Energy Network and its pioneering approach to bring web3 and energy together in new ways. We provide significant capital and networks to scale up mission-driven founders. IOEN is creating an entirely new industry in crypto and energy and we are excited to be on the journey with them to build it.”

Clean energy development is crucial to the new tokenized energy ecosystem. In every location, a clean energy network is established one device at a time. The Holochain-supported Internet of Energy Network has two currency layers: one for the ERC-20 token and the other for local energy use value data. To utilize ERC-20 IOEN tokens as a kind of passive income, investors need to unlock mini-grids via staking. IOEN tokens (ERC-20) allow token holders to participate in staking, unlocking the advantages of decentralized finance for those who support local energy economies. IOEC works in tandem with IOEN to allow local energy savings to be placed into productive decentralised finance opportunities.

Why Building on Holochain Is Essential

Holochain is a platform very different from conventional blockchains. Rather than depending on miners to verify transactions that indirectly affects the environment, Holochain forgoes the entire mining concept entirely and provides similar features with fewer energy requirements.

This is largely good for IOEN’s representation as their green initiative will be served along by it. Holochain is also a notable partner in IOEN’s project.

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Julia Sakovich
Editor-in-Chief Julia Sakovich

Having obtained a diploma in Intercultural Communication, Julia continued her studies taking a Master’s degree in Economics and Management. Becoming captured by innovative technologies, Julia turned passionate about exploring emerging techs believing in their ability to transform all spheres of our life.

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