In an attempt to create security tokens backed by real-world assets, WePower will tokenize the electricity grid of one of the most crypto-friendly European countries.
WePower, issuer of the WPR token, has completed its first experiment in tokenizing electric grid data. WePower received data for the entire Estonian electric grid, and tokenized it in an attempt to create a simpler tool for trading renewable energy.
The project, completed with the Estonian transmission system operator, Elering, tracked data for electricity production and consumption for the past year. The tokenization of data is a method that, in the future, may allow a direct form of trading for green energy. The current approach to Power Purchase Agreements is complex, while simply transferring tokens that are backed by energy production would disrupt the sector.
“Our mission is to foster the global transition to renewables by providing a streamlined way for companies to transact directly with green energy developers,” explained WePower in a recent blog.
The Smart Energy Tokens, which were only used for tests, will not displace the WPR tokens. The test was the initial stage of opening up the energy market for buyers who could not freely participate. The tokenization of electric power gives access to the value of a real product, available for trading.
“The nationwide energy tokenization pilot in Estonia allowed us to test the technological capabilities of Ethereum, the blockchain that sits at the core of WePower’s platform and build a solid infrastructure to allow us to run the first green energy auctions, as well as develop features for large-scale energy trading in secondary markets,” added WePower.
Despite the promising results, WePower also discovered the Ethereum network had scaling issues, and found difficulties connecting the Ethereum blockchain with centralized data-tracking systems.
Estonia was selected for the experiment due to the meticulous data gathering for the entire electricity grid through the Estfeed data system. It was precisely this data that WePower used to tokenize the energy market.
Following the test results release, WPR rose by 7% in the past day, to $0.031. The token is actively traded on Binance. WPR itself is not a security token and does not represent underlying value, but it still belongs to one of the most dedicated startups with a clear use case for blockchain technology.
Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.