The term ‘energy efficiency’ has garnered an increasing amount of mainstream traction in recent years, especially as the problem of global warming and rapid resource depletion has become more and more prominent. In its most basic sense, an energy-efficient system is one that is able to deliver a given result using less energy than other so-called “lower efficiency” systems, thus allowing for an overall yield increase as well as improved energy savings.
To put things into perspective, statistical data shows that approx. 68% of all energy that is produced today is not backed by any sort of “efficient energy standard”, which means that the operational systems associated with these power sources are not running at their optimal capabilities. Not only that, there is enough scientific evidence to suggest that enhancing energy efficiency is the cheapest, most efficient means of reducing the use of fossil fuels.
To this point, over the last couple of decades, a number of countries have been able to reduce their reliance on natural gas, petroleum, etc simply by making use of energy efficient solutions. For example, between 2000 and 2016, Japan reduced its reliance on crude oil by a whopping 20%. Similarly, over the same time frame, European giants including the UK and Germany, have been able to reduce their natural gas imports by huge margins.
The crypto/energy-efficiency dilemma
The ongoing energy debate has had a major impact on the way a lot of people view the cryptocurrency industry. For example, in recent years, Bitcoin’s high energy requirement has continued to dominate the headlines. To put things into perspective, the cryptocurrency currently consumes an estimated 150 terawatt-hours of electricity annually, which is more than the annual power utilization of Argentina.
Similar issues, albeit at a lower scale, continue to affect other popular digital currencies. For example, Ethereum too currently is quite resourced intensive. However, the project is set to change its governance model to a proof-of-stake (PoS) model in the near term, allowing the network’s overall energy consumption to be reduced by a whopping ~99.95%. That being said, there currently exist a host of mainstream projects that are already quite conservative in their energy consumption outlook. For example, Cardano reportedly consumes only 6 GWh of power per annum, while Stellar (XLM), Iota (MIOTA), and Tron, also have extremely low power needs.
New projects are redefining holistic energy consumption
With the rise of blockchain technology, a number of platforms have emerged that are allowing users to reduce their overall energy consumption by a huge margin. Efforce is one offering bringing together individuals who want to improve their internal energy efficiency processes using a pool of contributors interested in being repaid in tokens representing their energy savings.
Owing to Efforce’s novel operational setup, participating in the complex energy-financial system can be made simple and accessible for everyone. On a more technical front, it should be pointed out that by tokenizing one’s saved energy, it becomes possible to not only guarantee liquidity but also extend user access to capital investment in a highly streamlined, hassle-free manner.
The project’s governance framework is akin to the one being used by Energy Service Companies (E.S.Co) which, through Energy Performance Contracts (EPC), have been able to accrue sizable positive economic returns against an initial investment across various energy efficiency projects.
Another project offering a somewhat similar service is Power Ledger, a peer-to-peer (P2P) energy exchange platform that aims to democratize the energy distribution market by allowing users to choose their power suppliers in a completely decentralized fashion. As a result of this, users can not only minimize their exposure to rising grid supply costs but also have a positive impact on their local power grids by maximizing their energy conservation efforts.
Looking ahead
As per a recent study, the rate at which the world’s natural resources are being depleted at an unprecedented rate, in comparison to any other period in human history. Therefore, as we head into a future driven increasingly by decentralized technologies, it stands to reason that projects like Efforce, which are looking to make a positive change on the planet’s energy consumption, will continue to gather an increasing amount of mainstream traction.
