At dinner parties and sporting events – we are frequently asked to define blockchain.
Replying, “It’s the math behind crypto-currencies” – does not – it turns out – satisfy curiosity.
It simply gives birth to the next question: “What is crypto-currency?”
Let’s circle back to the first question:
“Blockchain is a shared — and continually reconciled — database stored across a network of computers. The transactions are public and verifiable in real time. Hosted by tens of millions of computers simultaneously, the data is accessible to anyone who owns a computer.”
Since blockchain is hard to wrap your head around, and harder still to explain – let’s ignore what it is – and look instead at who’s using it – and for what.
The Gates Foundation just launched Mojaloop – an open-source payment platform intended for people who lack access to traditional banking services.
Democracy Earth is designing an blockchain app to eliminate voting fraud. “No one can modify or subvert how the votes are stored, and that’s vital for democracy’.
The Massachusetts Institute of Technology (MIT) released blockchain digital diplomas which enable graduates to keep a “tamper-proof” and “verifiable” digital versions of their certificates.
The pop singer Shelita Burke is using blockchain technology to speed payment to her collaborators and ensure accountability. Every time someone buys an album, all her session musicians get paid 15 seconds later.
Third world banking systems, voter fraud, diploma records, music publishing – the diversity of the applications is dazzling.
It’s as though someone handed you a shiny black cube and claimed, “This thing will clean your gutters, do your taxes, unplug your toilet and massage your feet.”
When one invention can do 100 things, it’s likely to be used 100 times more often.
So, what’s next for blockchain?
How about saving the world?
Or more specifically – saving energy.
It turns out that Energy Efficiency Savings is a massive – and massively profitable business.
According to the International Energy Agency (IEA), total Energy Efficiency Improvements in Australia, Denmark, Finland, France, Germany, Italy, Japan, the Netherlands, Sweden, the UK and the USA equal about 60% of total energy consumption.
On February 12, 2018, Kontrol (KNR.C) announced that it is developing, a utility token called “GHGcoin” and Carbon Offset trading platform with an unnamed Blockchain software development company.
The GHGcoin will deploy distributed ledger technology, attempting to sequestering up to 10 Billion tonnes of C02 through the carbon offset markets.
The GHGcoin will be designed as a utility token and is intended to offer transparency, immutability and accountability for organizations to meet their net zero emission targets.
The GHGcoin will have a finite issuance based on the reduction and/or sequestration of up to 10 Billion tonnes of C02 over 10 years.
GHGcoins would be issued to a participating company, based on their own internal targets to become a net zero emission company.
DLT smart contracts will allow organizations to grant the GHGcoin as a reward for consumer spending and engagement in support of carbon offset projects.
Unlike many cryptocurrencies, which have no intrinsic value (they are simply worth whatever someone will pay for it), the value of each GHGcoin will be pegged to the equivalent value of one tonne of C02.
Emission compliance markets are highly regulated. Government agencies decide what kinds of offsets are permitted. They also create and police verification standards.
Carbon offset markets typically follow industry governance.
“The solution to negating and reducing C02 levels is multi-faceted and complex, especially for large organizations,” stated Paul Ghezzi, CEO of Kontrol Energy. “While many corporations are currently participating in carbon offset projects, they are typically constrained in size and scope and burdened by high transaction costs. We seek to solve these challenges for our customers and accelerate their move to becoming a net zero emission organization.”
As well as the GHGcoin, Kontrol is developing its Carbon Offset trading platform which enables carbon offset vendors to disaggregate their projects across multiple purchasers.
The Paris Climate Accord has 193 participating nations. These countries have committed to achieving net zero emission status by 2050.
To succeed, these countries will need a strategy to execute carbon offset projects.
Kontrol seeks to be a leader in providing DLT solutions in the voluntary carbon offset markets. Both the GHGcoin and the Carbon Offset trading platform are in development for 2018.
Do you remember we mentioned the “unnamed Blockchain software development company” that is developing the GHG coin with Kontrol?
It also happens to be an acquisition target of Kontrol.
On January 3, 2018, Kontrol singed and LOI to acquire an energy analytics company which specializes in the application of energy software tools to analyze the management of complex heating, ventilation and cooling systems for large residential, commercial, and mission-critical real estate owners.
The acquisition target generates about $1 million of annual revenue, $600,000 of which is recurring revenue.
“Our blockchain technology solution, for the energy and carbon markets, includes decentralized, secure contracts to clear physical and financial markets,” stated Ghezzi, “For each kilowatt of energy saved, a corresponding value of carbon can be measured, verified and monetized.
According to Research & Markets, “The energy efficient devices market is expected to reach a market size of $908.49 billion by 2022.”
To fully monetize these devices, their usage needs to be tracked.
That’s where Kontrol comes in.
The company is currently trading at $1.25 with a market cap of $31 million.
Full Disclosure: Kontrol is not an Equity Guru marketing client, we’re writing about the company because they occupy a potentially profitable blockchain niche.