SunContract is an energy trading platform built using blockchain technology. Find out how it works today in our SunContract review.
What Is SunContract?
SunContract is a blockchain platform that lets you buy and sell electricity. It’s an energy trading platform that promises to solve many of today’s problems regarding the energy sector.
Today, SunContract is seeking money through a crowdfunding campaign. They’re selling SunContract (SNC) tokens. SNC tokens will be used to buy digital electricity from the platform in the future.
Overall, SunContract wants to make a decentralized, smart, and efficient marketplace for the transfer of electricity and energy.
The idea for the company was formed in Q1 2016. In May 2017, SunContract published their whitepaper online. The company hopes to launch their SunContract platform in Q1 2018.
The ultimate goal of SunContract, according to the whitepaper, “is to support a global self-sufficient energy community based on renewable energy and peer-to-peer energy trading based on the blockchain and smart contracts.” This will lead to greater independence when it comes to energy.
How Does SunContract Work?
SunContract’s blockchain-based exchange platform brings together independent power producers and consumers.
These two parties connect to the decentralized energy market platform through the SunContract mobile app.
Essentially, we already have a system like this today: utility companies act as a middleman between energy producers and consumers. With SunContract, the blockchain takes over the role as the middleman. This reduces costs and connects consumers directly with producers.
SunContract has not yet built its platform. The company plans to launch the platform in Q1 2018. That means everything we know about the platform comes from the whitepaper. Below, you’ll find some of the important proposed benefits of SunContract, including the problems it seeks to solve.
What Problems Does SunContract Seek To Solve?
- Enable personal contributions for improving the global energy situation
- Support self-consumption and self-sufficiency
- Capture the full potential of local renewable resources
- Enable transparent transactions between producers and consumers through the pool, based on smart contracts
- Lower costs by reducing or eliminating the role of the middleman
Overall, SunContract plans to create a sun-driven economy using a blockchain-based exchange platform.
Here are some of the key proposed features of the SunContract platform.
Like other blockchain platforms, SunContract claims their blockchain platform will be transparent. Transactions cannot be altered in any way once they’re on the blockchain. This creates a healthy business environment for energy producers and consumers alike.
Transactions written on the blockchain can be traced back to the address where they were executed. A user’s identity is never in jeopardy because it’s only possible to trace the address and not the person behind it.
All transactions on the blockchain are timestamped, which means you can check back to see exactly when each transaction occurred.
Transactions made through SunContract’s blockchain are trustworthy, transparent, traceable, and timestamped.
SunContract represents the digitization of electricity trading on the blockchain, allowing electricity to be more flexible, transparent, and traceable than ever before.
The world wants to reduce greenhouse gas emissions by 80% by 2050. To achieve this goal, the world needs to increase the utilization of renewable energy sources. That’s where SunContract sees an opportunity.
The energy industry isn’t a level playing field. Today, governments subsidize conventional energy sources to make solar energy less affordable, while other governments subsidize solar energy at the expense of other energy sources. SunContract plans to deregulate the industry to let the market decide.
Decentralization is the process of redistributing or dispersing functions, powers, people, or things away from a central location or authority.
The democratization of energy supply allows access to power as well as the flexibility to choose the source of power. A distributed electrical energy generation system gives us a way to democratize supply across markets.
Ultimately, SunContract calls the first 5 features the “five Ts” of blockchain technology while the last 5 features are the “five Ds” of solar energy. The company claims their platform will join together the best features of blockchain technology (the 5 Ts) and the best features of renewable energy (the 5 Ds) to create an entirely new service that will revolutionize the existing marketplace.
The SunContract Energy Pool
The first phase of SunContract is to create the SunContract Energy Pool. That pool joins together power producers and consumers, allowing them to trade energy.
In order to trade energy, you need to use SunContract Tokens (SNC).
Both consumers and producers can register for the pool through the mobile app.
How will the pool work? Let’s say Person A has a solar power plant and produces clean, renewable energy. Person A is currently selling electricity to huge trading companies, where he has a weak negotiation position. Person A decides to sell electricity to the SunContract marketplace instead.
Person B is the consumer who signed up through the mobile app and purchased SNC tokens. Person B can use those tokens to obtain electricity from the pool. The market decides the price of electricity based on what consumers are willing to pay.
The SunContract Token Sale
The SunContract token sale is taking place throughout July and August. An indefinite number of SunContract tokens (SNC) will be issued through the token sale. The company has set a cap at 100,000 ETH, with a ratio of 1 ETH = 10,000 SNCs.
50% of funds raised through the token sale will be put towards development. 25% will be put towards marketing and sales, 15% towards operations, and 10% towards legal costs.
Who’s Behind SunContract?
Typically, a company’s whitepaper outlines the team involved in the project, including their background, skills, experience, and roles within the company. Oddly, SunContract’s whitepaper doesn’t list a single person involved with the project. The whitepaper doesn’t even have an author listed.
The only information we have about the team behind SunContract is that they’re “an international team with vision, expertise innovative thinking, openness, management skills, marketing knowledge” with a background in IT, energy, finance, and blockchain technology.
It’s not exactly a red flag when a company doesn’t list its team online or in the whitepaper. However, it’s a bit unusual.
SunContract has ambitious goals to democratize the world of renewable energy. SunContract will create a blockchain-based exchange where producers and consumers can interact. Consumers can purchase electricity in exchange for SunContract Tokens (SNC). Producers can sell energy at a better rate than they currently get from utility companies.
SunContract doesn’t yet have a working product available. The company plans to launch its platform in Q1 2018. The whitepaper appeared online in April.
Stay tuned for more information about SunContract as the project continues to grow. Or, visit the company for yourself today at SunContract.org.