Following twelve months of intense research and development, EnergyFunders, an enterprise based in Houston, Texas, released its blockchain-based platform at the end of February. The platform is the first of its ilk in the energy sector, and plans are currently underway to develop other similar for versions for secondary markets.
What Is EnergyFunders?
A pioneering project in the energy investment equity crowdfunding sector, EnergyFunders is set to revolutionize the energy industry. The project, which consumed multiple hours and colossal amounts during its developmental stages, is expected to improve the user experience on the EnergyFunders website significantly.
The energy sector is usually marred by a fair share of inconveniences, particularly regarding the recurrence of inconsistent and unsatisfying findings concerning mineral rights ownership. In the past, investors and other stakeholders in the mining sectors have had to deal with regular prolonged adjournments and rulings, never-ending legal battles, transactional delays and in extreme cases the postponement and ignoring of deals as a result of tedious ownership disputes. By leveraging the abilities of blockchain technology, disputes will be permanently forgone. This is because blockchain accurately records and verifies user records, creates a clear chain of ownership and uses smart contracts, eliminating the possibility of any dispute.
Typically, the transactions involving energy assets and ownership interests are not time-conscious. Furthermore, the process is often expensive and cumbersome, as the involved parties have to embark on lengthy operations such as land title searches, due diligence and recurring request for specific information. The EnergyFunders blockchain project promises to solve this problem, as all transactions will be verified promptly and signed using smart contracts. The latter will mainly come in handy, as it subtly handles all the prerequisites as mentioned above, which are the main reason for the lengthiness of this process. Consequently, the entire process becomes streamlined, saving massively on both time and resources.
EnergyFunders Offers First For Energy Investing Benefits
In addition to time-consciousness and reduced operation costs, other benefits resulting from the implementation of blockchain technology include:
- Efficiency and optimization – currently, the energy market suffers from substantial illiquidity. The new platform will rectify this, allowing rapid and secure processing of transactions, and thus open up secondary markets.
- Accountability – blockchain transactions are both incontrovertible and transparent. Also, it will be easier for auditors and regulatory bodies to keep the platform in check.
- Enhanced security – the platform will be unassailable, thanks to the robust nature of the cryptographic encryption used.
Ultimately, the new EnergyFunders blockchain platform intends to expand the energy investments sector to include all legally eligible individuals across the world. The ecosystem will feature an inbuilt regulatory mechanism that is fully compliant with the laws of the user's resident country. Gradually, the platform will transcend international borders, transforming into a dynamic, peer-to-peer network with minimal transaction costs.