ERC20 - Energi Token’s blockchain vehicle
Tags: Fintech, Cryptocurrency, Blockchain, Energy, Ethereum

Is blockchain just a buzzword?

Blockchain. It’s a buzzword that is grabbing the attention of investors everywhere. It’s such an attention-grabber that when some companies simply added “blockchain” to their corporate name in an attempt to stir up excitement (sip of Long Blockchain, anyone?), they saw their share values soar, doubling or tripling in value in some cases.

But blockchain technology is much more than just a gimmick. It is a world-changing innovation that will shift the way we interact economically. It allows for networks that can interact globally without a central agent, instead using the consensus system of the entire network to ensure integrity and security.

The ERC20 token

One of the better known blockchain networks is Ethereum, the base blockchain of hundreds of tokens. Tokens have been spawned on the Ethereum network for a myriad of purposes, launched to markets globally since 2015. Most of these tokens run on the blockchain using a protocol called ERC20. This is a technical standard by which any ERC20 token does not need to “reinvent the wheel” but instead can be built on an already accepted infrastructure that follows a standard set of rules.

For a simple illustration of the ERC20 standard, take the example of electrical appliances. Appliances all follow a certain standard when connecting through a power supply, even though they each perform unique tasks with differing mechanisms. Appliance manufacturers do not independently create unique power supplies for different kinds of appliances. Instead, your microwave oven, blender, and coffee maker all connect to power sources through the same standard electrical interface. So a protocol is followed in the industry by which all appliances connect to the power grid. The appliances themselves are like the unique tokens and the method by which they plug in or interact with the Ethereum infrastructure is known as ERC20.

This standard protocol enables developers to program the token with certain rules of behaviour called smart contracts. Smart contracts can be programmed to perform all kinds of functions that will transfer token rewards when certain conditions or parameters are met. Because of its versatility and proven reliability, the ERC20 protocol is the most popular platform for launching new tokens to market, by far.

Energi Token is an ERC20 token. Users can easily store and transact the token through the trusted Ethereum blockchain system by using the well-established and proven protocol. The token can take advantage of its smart contract capabilities — a key element in creating the ETK eco-system that will enable trading between power generators and consumers and will allow for programmed token rewards for energy-efficient behaviour.

One of the greatest advantages of using the ERC20 protocol is its ease of use. The token can be easily traded via any Ethereum-supporting wallet, including hardware wallets like the Trezor and Ledger Nano S, for the ultimate in security of funds. This makes the Energi Token easily transferable between businesses, power generators, and energy traders. There are no borders in this economy — trades can be made globally in seconds, so an ETK user in Germany can buy more ETK from Japan and sell ETK to someone in England. Energy trading becomes fast, efficient, affordable, and borderless.

The future looks bright

There is a ton of potential for the future here too. The Internet of Things (IoT) will bring on a new wave of utilities for the technology because of the smart contract capabilities of ERC20 tokens. Imagine appliances that automatically reward users for efficient energy usage via smart contracts. Energy trades from a surplus producer down the street automatically sold to you via ETK. ETK delivered to your digital wallet for your energy-efficient choices, like using mass transportation, for example.

Tokens are not just a gimmick to create a new buzz around an old, tired product. It is a technology that enables entirely new products with completely new ways to address and solve age-old problems. Energi Token will break down barriers in the global trading of energy. It opens new avenues for changing how we behave through automated monetary rewards. The ETK token can change energy-consumption behaviour for the better through the amazing innovations of the Ethereum blockchain and ERC20 technology.