Hear me out. On Reddit, the #solarpunk channel is decidedly anti-blockchain. To me, this is totally surprising and against the actual ethos of Solarpunk - to integrate technology for a bright, clean future.
Granted, blockchains don’t have much reputation in alternative circles. And for a good reason. A lot is just linked to scams, get-rich-quick dudes, and speculation, apart from energy consumption arguments.
But blockchain at its core is just a distributed database. One that has no central authority, can not be tampered with, cannot be altered, nor taken down if parametrized accordingly.
This allows - as a potential - to democratize access and value creation. Renewable energy is also fundamentally decentralized. Everyone can participate!
Now, with the costs of renewable energy creation (notably solar) shrunk significantly, and the demand for energy consumption rising heavily, if we only think about the booming electric vehicles alone -
What if people could earn money by generating solar energy and selling directly to vehicles, instead of the grid? I believe this could actually boost renewable energy generation over the roof.
Generators would be rewarded with a blockchain token for the energy generated, while consumers would pay for the energy in those tokens. Therefore speculation would be curbed as the tokens are for a real thing, energy, which on top is a stable unit - kWh.
Of course there are a lot of hurdles here - mostly institutional. Usually, energy is controlled by local authorities. They don’t want to allow anyone access to this market.
Then there is the distribution issue. Energy must be transported to the points of consumption, the charging stations. But due to the decentralized nature, this could actually result surprisingly cheap, as instead of transporting large distances, more charging stations in neighborhoods could reduce those distances. But still, this would require upfront charging stations and distribution investments.
I am an engineer. A dreamer. More often than not, as many many others, the realities of markets and economies clash with such ideals, thrashing generally good ideas.
But I wonder if such a scheme could made be possible. Anyone having some good suggestions? I mean mainly from the economics side. How to design the scheme, how to make it so that it is interesting to everyone? There are already several solar energy blockchains, but they kinda failed to get traction.
For the more radicals - I also dream of a money-less Solarpunk future, but to date, it seems further away than ever, looking at the right wing surge everywhere. Maybe we can build bridges at least from the technological side. Thank you if you got so far. Happy to respond to critique and questions.
Here’s the basic problem with this solution as far as I can see: assuming we’re talking about a distributed public ledger blockchain, you haven’t described how the chain is secured.
The existence of systems like “proof of work” and “proof of stake” is based on the need to have some sort of proving mechanism for validator nodes. You have to solve the sibyl problem, or else someone can just run 10,000 copies of the validator software on one computer, submit enough votes for a false record that it overwhelms any competing votes, and thus create their own version of the chain - now authorized as the definitive and true version - where they get free energy for life because they’re so staggeringly wealthy in your new currency.
Distributed public ledgers only work if you insert a real world cost to validation. Basically, something of value must be committed or destroyed in order to authorize a validator node. Otherwise you have to authorize the nodes yourself, and now you’ve just reinserted a central authority.
So what is destroyed or committed to secure your chain? Assuming proof of work, it would be hardware and energy. People would be burning power solving increasingly complex and entirely meaningless math problems in order to be allowed to act as a validator. So now we run into the problem of incentive; why would they do this? In basically every public ledger blockchain that exists, the answer is that they get paid. Newly created tokens are given out to validators as a reward for their work. And, inherently, those tokens must be worth more than the cost of doing that garbage work in order for validators to actually benefit in any way. Without that, the incentives don’t work, and the validator nodes all shut down, destroying your blockchain.
This is why speculation and rampant deflation are inherent to cryptocurrencies; because in order for the validator system to not be overwhelmed by a single bad actor buying a tonne of computer hardware, the complexity of the validation (hence, the cost of the work in spent energy) must scale with the amount of hardware in the network, and that means that the cost of being a validator scales with the amount of hardware in the network. So as your network grows, the value of the token grows, or else the network dies.
But you’ve decided that people will also be rewarded with a token for the actual physical act of generating solar power and feeding it to the grid. And they’ll pay for power with those tokens. So your system is unbalanced. You pay people to generate power with newly created tokens, and then destroy those tokens when they’re spent to buy power. But you, presumably, also pay people to run validator nodes (because how else is your network secured?) using newly generated tokens, so you’re giving out more tokens than the actual amount of generated power in the system. That means you have too many tokens chasing a limited supply of goods.
So now you either have to allow people to overbid for power, creating rampant runaway inflation, or you have to keep the cost per kwh fixed, and create a situation where people go to get power but there’s none in the system, because you’ve got floating, “empty” tokens that don’t actually reflect a unit of power generated. And since you’re paying for power going into the system with these tokens, either way you’re destroying their perceived value and that means you’ve destroyed any incentive to sell power to your network in the first place. They’ll just sell to the grid instead.
And moving to Proof of Stake or Proof of Storage or any other proving mechanism doesn’t solve this problem, because ultimately they all rely on the validator committing something of value. If they don’t, it’s by definition no longer a proving mechanism, because the cost of sibyl attack becomes zero (or close enough to zero as to be meaningless). And if every validator must offer something of value, they must get something of value. Which means you have to generate tokens and give them out to the validators, and you have to ensure that those tokens have a real-world worth that is commensurate to the value that the validators commit.
Yep, real blockchain know-how here. I answered to this partly here I think (if I am linking correctly) https://slrpnk.net/post/17009217/13027204. The real issue there is how would anyone be prevented to register a new private key as a validator. Hard-wiring that into the hardware creates new problems. So I guess this is the argument where it all could fall apart, just technically. Thanks.
So, if I understand your pitch correctly (and, let’s be clear, this is information that needed to be presented right off the bat if you actually wanted to communicate this idea effectively), you’re envisaging a model where you sell some kind of hardware, presumably a complete solar panel kit of some sort, which then acts as a uniquely authorized validator node on your network, while also accounting for each unit of power pushed by that panel. As validator nodes, each panel contains a full copy of the database, and acts to verify new transactions, ensuring the integrity and security of your blockchain.
I’ll allow, for the sake of your argument, that your keys and code are sufficiently secure that you’ve accounted for basically any possible hacking risk. We don’t need to get into that argument. While in practice perfect security is impossible, for now we’ll say that your hypothetical security is “good enough.”
Right off the bat, we run into the following challenge:
Its remotely possible that the economics of the whole thing makes the latter option unappealing, but if so, I can’t see it. At best you’ve basically removed the incentive to use solar that the scheme is supposed to offer.
Another technical issue with this approach is that you want these devices to be usable wherever the sun shines, but in order for them to be able to each act as a validator node they have to each contain a full copy of the database, and that means having at least a decent internet connection if this system is ever supposed to scale. That isn’t going to work out at the cabin.
But even supposing those problems are solvable, and supposing that you can solve the problem of how the power gets from the panel to the charging stations without going through the local power company, we’re left with this question: Why blockchain?
You say that you want this to be distributed, public, not under the control of any one entity, but your keys would have to be authorized by a central authority. You would have to be the only producer of these devices to ensure that some unscrupulous individual doesn’t build a box that runs a hundred validators at once, exposing you to sibyl attacks again. You would also have the ability to revoke any key at any time. There would be nothing truly decentralized about this system.
Yeah this is the best critique in all the answers. I was aware of most of these issues, and I hoped that by sharing the idea, ways to improve it and make it viable would emerge. I was thinking that the same way solar energy can be metered and sold today (after all, you can’t lie about having generated energy you haven’t, can you?), the infrastructure issues could be addressed (being the meter the actual node, and possibly as some kind of light node, which wouldn’t have to store the whole chain). The most important goal however was to boost decentralized solar energy generation, and make it profitable to individuals and self-organizing communities, instead of relying on our slow, gating institutions. Think of shanty-towns in the tropics which could suddenly be contributing to a cleaner world while also resulting to be better off (some credit scheme or something would be required for their investment costs, of course). If this idea doesn’t reach those goals, it’s useless.
I still believe blockchains have potential but this is maybe not the best use case. Thanks!
That’s solved on Ethereum by requiring you to stake tokens that cost money. You would need an enormous amount of money to afford to spin up 10000 validators.
I’m afraid you’re not very familiar with how Ethereum works. 10,000 validators isn’t anywhere near enough to disrupt the system, all you would do is burn your stake and lose all that money if you tried that.
Even if you acquired enough stake to prevent finality - 2/3 of the total stake would be required, costing tens of billions of dollars and taking years to work your way through the entry queue - all you’d do then is cause a huge annoyance to everyone on the system while your tens of billions rapidly burned down to below the threshold and finality resumed again. You wouldn’t be able to insert “fake” transactions.
People have been working on blockchain technology for a long time, these sorts of basic attacks have long ago been accounted for.
Do you also burst into astrophysics conferences and tell people that the sun is a burning ball of gas?
Please read what I wrote again, very carefully, and ask yourself “Am I actually contributing anything new to this person’s understanding of the topic?” Because everything you’re throwing out here is basically baby’s first blockchain, and none of it comes even remotely close to addressing my actual argument, which seems to have been a few steps beyond your grasp of the subject.