Blockchain and Energy Sector

Aug 25, 2019 at 07:52 Update Date :Aug 26, 2019 at 07:58 UTC

It seems like blockchain technology is on the verge of conquering the energy industry, with all the necessary elements in place: a lot of competing projects, an ever wider adoption of cryptocurrency, and fast transactions. However, a true blockchain-powered energy network has not appeared yet. What is missing?

The answer lies in the extreme volatility of the cryptocurrency market. Just over a year ago, in January 2018, one Bitcoin was priced at $20,000 — and 12 months later, it fell to a little over $3000, taking most other coins and tokens with it. What applies to Bitcoin — the world’s largest cryptocurrency — applies even more to the tokens of newly launched projects, which do not yet have a popular product. Thousands of tokens are present on the market, yet almost all of them remain purely speculative assets: They are sold and bought by professional traders who are not interested in the underlying projects.
For some industries, such as IT and blockchain infrastructure, the speculative character of tokens and the lack of a customer base are not necessarily a problem, since the implementation of such projects does not rely on existing hardware infrastructure and markets. However, in the energy market, a company without clients has virtually no hope of overcoming the barriers of adoption and establishing a functioning tokenization system. Users simply won’t switch to an unlicensed energy provider that has no network or hardware innovation of its own, no matter how good its tokens look on paper.
Enter LCG Energy

LCG Energy is a energy reseller and contractor licensed by the German and Austrian Federal Network Agencies for Electricity, Gas, Telecommunications, Post and Railway that is active mostly in Germany and Austria, where it has more than 50,000 customers in the form of both individual households and small to medium-sized enterprises. The company both provides electricity and installs smart meters — advanced sensor devices that allow for precise, real-time pricing and payments. LCG’s clients save over 20% on their electricity bills thanks to smart meters and to the company’s efficient buying policy.
With such a large customer base and a network of over 1000 partners and suppliers, LCG Energy is uniquely positioned to bring blockchain to the energy market. After the token sale, LCG will use most of the proceeds for two purposes:

  • Buying energy on the market and offering better prices for consumers due to the scaling effects
  • Investing in highly promising energy startups in the segment of “green” energy that will provide good ROI to token holders and later offer energy to the ecosystem members at even better prices

All transactions in the LCG network will be carried out using smart contracts, which will allow for the exclusion of intermediaries (such as banks) to minimize fees. The token holders who buy their electricity from LCG will save even more, but even those located outside of the company’s business region can benefit. They will be able to use their tokens to finance the specially selected projects that focus on sustainable energy. Once those projects enter into the production stage, they will join LCG as energy providers on the network.

Lower electricity bills, more precise pricing, transparent costs, disintermediation, attractive investment opportunities, the possibility to participate in the transition to a more sustainable future — all these and other advantages will be available to LCG token holders.

To learn more about purchasing tokens and the incentives offered, refer to LCG Group Website

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