Blockchain-based energy grid startup ELONCITY raises $20 million
The AI Grid Foundation, investors in ELONCITY, have raised $20 million from dozens of global institutions and private investors to help develop the blockchain-based grid system.
ELONCITY’s creator Andy Li has handled electricity distribution for data centres in the past and has experience in network traffic engineering and system intelligence.
The aim of the ELONCITY model is to replace fossil fuels with renewable energy sources, with individual power generators forming decentralised microgrids, rather than relying on central power plants.
Customers would be able to generate their own electricity and trade it but instead of selling it back to the grid, customers would be able to trade energy amongst themselves.
A specifically designed blockchain would be used in order to facilitate the transactions.
“Currently, Andy [Li]’s team is developing a state-of-the-art blockchain smart contract platform to empower the customers to exchange renewable electricity with each other.” said the company in a press release.
Some have argues that blockchains are too inefficient and expensive to make peer trading feasible, however, defenders of the ELONCITY model counter that those arguments are based on Bitcoin and other proof-of-work blockchains, whereas ELONCITY is using a custom blockchain expressly designed for this purpose.