What is Energy Web Token? (EWT)
The Beginner’s Guide
The Energy Web Token is the native cryptocurrency of the Energy Web Chain, an open-source platform designed to support the development of energy sector applications by building a more traceable, democratized, and decarbonized energy system.
Historically, grid operators have provided the physical infrastructure to enhance electrical power usage and relieve reliance on carbon energy consumption. The Energy Web Chain (EW Chain) aims to provide the digital infrastructure that connects the grid operators, customers, and physical assets (like solar panels, thermostats and electric vehicles.)
Central to running the EW Chain is the Energy Web Decentralized Operating System (EW-DOS), a stack of technologies designed to connect participants within the energy market to increase grid flexibility.
Key to the network’s operation is the Energy Web Token (EWT), which is used to compensate key network operators and allows those who hold it to pay for decentralized application services built on the platform.
To stay up-to-date with Energy Web, you can bookmark its blog where the team posts articles, news, and feature updates.
Who created Energy Web Token (EWT)?
The Energy Web Foundation (EWF), a non-profit organization that built and developed the Energy Web, was founded in 2017 by Rocky Mountain Institute, Grid Singularity, along with ten other affiliates.
The Energy Web Foundation has conducted several rounds of funding over two years, raising approximately $20 million and selling 21 million Energy Web Token, EWT coins. The EWF officially launched its Energy Web Chain in 2019.
Over time, Energy Web has grown to over 100 partnerships, including industry giants Tepco, Siemens, Shell, and Exelon.
How does Energy Web Chain work?
The Energy Web Chain is built by applying features common to many cryptocurrencies, such as a shared infrastructure, an incentive scheme and a traceable log of information.
In fact, the EW Chain derived its own blockchain code off of Ethereum’s one in an effort to focus on functionalities affecting the energy sector rather than recreating an entire infrastructure.
Due to the Energy Web Chain relying heavily on real-world data, it’s worth noting that the platform integrates middleware technology into its architecture such as oracles, who deliver real-world data to EW applications, bridges, allowing EWT coins to be used on other blockchains, and a digital identity system, for users to have persistent identification across Energy Web applications.
Proof of Authority
To keep its network in sync, Energy Web uses a variation of Proof of Work consensus mechanism, called Proof of Authority (PoA), to keep EW Chain’s distributed network in sync.
While not structurally different from PoW, the PoA mechanism only allows for a certain number of nodes to validate transactions and create blocks, called validator nodes, who must meet certain eligibility criteria, such as being a legally registered organization and being an official member of the Energy Web Foundation.
To incentivize validators to perform honestly, they are compensated with Energy Web Tokens (EWT) upon their block being included in the Energy Web Chain.
Why Does EWT Coin Have Value?
The Energy Web Token EWT cryptocurrency plays a key role in maintaining and operating the Energy Web network, and can be used for holding, sending, or interacting with applications.
By owning EWT, users gain the ability to participate in the suite of products and services built within the Energy Web ecosystem, as well as send EWT to any other participant on the network.
Additionally, Energy Web rewards validators with Energy Web Token based on programmatic rewards and fees attached to each transaction included in a block.
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Why use Energy Web Token EWT?
User’s may find Energy Web appealing based on its energy-sector specific suite of products and services built on its platform.
The Energy Web Chain may also be interesting to businesses within the industry that are looking to launch custom applications on its blockchain.
There are a variety of projects that have already been built on the platform. Some examples include Zero, a collection of marketplaces to find and source renewable energy, and Switchboard, an identity and access management tool.
Investors may also seek to buy EWT and add it to their portfolio should they believe in the Energy Web’s ability to disrupt the energy-sector market.