What is Solracoin?
Solracoin is a cryptocurrency protocol that uses kilowatt-hours produced by solar panel arrays as the means of generating the cryptocoins themselves. As kWh are generated and recorded Solracoins are created in a process of parallel accounting at a ratio of 1 kWh to 1 Solracoin. Ledgers for both the creation of the coins and the blockchain containing the ongoing exchange of existing coins are distributed to all nodes within the system.
The purpose of the Solracoin protocol is multi-fold:
• First: To create, install, and begin to use a form of money that has a utilizable underlying value which is also the cornerstone of all economic transactions: Energy. See Economic Theory: Money as Energy.
• Second: To create a protocol and crypto-currency that is fully transparent, distributed, and lacks a central point of failure (minimally centralized).
• Third: To create a protocol and currency that allows any nation, territory, or group on Earth to have near equal grounds in terms of implementation, utilization, and creation of the currency. This is intended to provide a protocol and currency that would be useful as a global reserve currency without undermining the ability for smaller collectives to participate equally and independently in the aforementioned areas (implementation, utilization, and creation).
Issuance and distribution of Solracoins:
Solracoin panel deeds will be crowdfunded/issued in ‘blocks’ (1 MW solar arrays) which will be funded one at a time. A ‘block’ consists of the actual panels for a 1 MW solar array, land costs, cost of installation labor, inverters, wiring, mounting, other necessary components, metering, and insurance costs.
To fund a 1 MW block solar deeds will be sold to investors in a crowdfunding fashion and equity in the block will be distributed to investors based on their respective investment percentages. For example if a block (1 MW solar array) costs $100 to complete and 100 investors pay $1 each then they will each own 1% of the total block and thus 1% of the Solracoins generated. Essentially an x% investment in a block yields x% ownership in that block and thus rights to x% of the Solracoins generated by that block.
Visualization process of crowdfunding a 1 MW block:
Progress of total accumulated funding for each block will be updated on a progress bar/grid. Once funded the panel deeds/rights for each block will be generated and distributed similarly to how colored coins or stocks are distributed to investors. If the solar deeds are viewed as the ‘stock’ then the ‘dividend payment’ would be the Solracoins generated in parallel to the kWh produced. Both the panel deeds and Solracoins could be traded – and both would be recorded and distributed in a blockchain.
In the above image we see the approximate daily, weekly, monthly, and annual kWh and Solracoin generation rates of a 1 megawatt solar array at a 1 kWh : 1 Solracoin ratio. We also see the approximate value of the electricity generated each year at $.10 USD/kWh. Approximate cumulative generation values for 10, 20, and 30 year time frames are also listed. Efficiency decay of .5%/year (natural efficiency decay of panels) is taken into account.
In this image we see the basic structure and relationship between the Solar Panel Deeds, the Solracoin cold wallet, and the Solracoin hot wallet.
The overall concept is fairly simple: The Solar Panel Deeds (analogous to a stock) generate Solracoins (analogous to dividends) at a given rate ➜ The Solracoins flow into the cold wallet where your savings are pooled ➜ Solracoins then flow from your cold wallet into your hot wallet which the user can set value caps and flow rates on.
The Panel Deed and cold wallet function as cold storage (encrypted/secure) and could incorporate a form of Multisig adding extra security and allowing the user to have full control over their accounts without a central party being able to access their panel deeds/coins. Cold wallets are analogous to a bank savings account. They contain the bulk of your money, and are fairly secure – but because of their security moving funds isn’t as fast as spending cash in your pocket or using a credit card. That is where the hot wallet comes into play.
The Solracoin hot wallet is designed to hold less funds and is intended for quick smaller purchases and ease of use.
Solar Deed Information Outline:
The Panel Deeds contain relevant information such as its equity in the block, purchase/installation date, age of panels, panel type/model, daily to annual Solracoin generation rates, and deed ownership transaction history which will all be included in the blockchain.