What is blockchain tokenisation in the energy industry?
Tokenisation is the process of converting an asset (this could be physical, like art, or non-physical, like money transfers or electricity generation) to a token on blockchain.
It’s a new technology that offers immense value to businesses by enabling them to offset their electricity usage with specific, traceable renewable energy generation.
To understand how, we first need to understand how blockchain tokenisation works.
What is blockchain?
Blockchain is essentially a type of database, however the way blockchain stores data differs from traditional databases.
Where traditional databases store data in a table format, blockchain stores data in groups, or blocks, that are linked together.
As new data is added to the blockchain “database”, it’s added to a new block which, when filled (groups have data capacity limits), is added onto the end of the previous block. This means the data is always chained together in chronological order. This is known as the “blockchain”.
Think of blockchain like a railway. Each block is like a section of train track that is clipped together to make the overall railway – the blockchain.
What is tokenisation?
Tokenisation is the process by which a physical or non-physical asset is converted into a digital token that can be transferred, stored or recorded on blockchain.
So, in our analogy above, the tokens are like the trains that run on the blockchain railway.
Almost anything can be tokenised on blockchain, from real estate to art to energy.
One of the great things about the blockchain format is that it creates a permanent, uneditable timeline of data. When added, each block is given a timestamp and is set in stone. This means, when tokenised, you can easily and transparently trace token ownership.
The benefits of blockchain tokenisation to your business
As a business, you have a responsibility to perform your business activities ethically and sustainability. Many businesses have CSR and ESG commitments and using renewable energy is a big part of fulfilling your environmental obligations.
But traditionally, complicated energy procurement processes have prevented many companies from buying locally produced, sustainable energy.
Now, using tokensied blockchain, we can match renewable energy generation to your business’ energy usage.
Through our Mojo Marketplace platform, we can link your company’s energy consumption to the renewable generation projects of your choice. The electricity generated by these projects is tokenised so we can prove how much renewable energy each project sends to the grid and match this to your business’ energy usage.
So you get genuine, matched renewable energy at competitive prices that is easily traceable and auditable.
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