Bitlumens: A New Energy Powered by IoT and Blockchain Technology

Nina Ritz
Nina Ritz
Sep 5, 2018 · 4 min read

Technologies such as blockchain and the Internet of Things have had a significant impact on many key areas of industry and commerce. What were once ideas reserved for science fiction, are now quickly becoming a part of our everyday reality. However, while most people associate these technologies with high-income economies of the West, the reality of the matter is a bit different. In fact, blockchain and IoT are both being utilized at this very moment to solve key infrastructure issues in some of the world’s poorest countries.

It is often the case that more utilitarian applications of a particular technology tend to get overshadowed by their more popular counterparts. Smart household appliances are certainly an upgrade over their analogue counterparts, but they are hardly changing the game when it comes to serving basic human needs. The same goes for blockchain tech. Cryptocurrencies are an exciting new prospect for investors, but they have yet to prove their worth as something you use every day.

In contrast, Bitlumens, a startup company specializing in electro-distribution is trying to leverage blockchain and IoT to bring about positive change in rural areas across the globe. To see how a company can single-handedly change the game in a key area such as electro-distribution, take a look at our short primer on the topic below.

How it Works

Bitlumens was founded by Veronica Garcia in 2017. The idea behind the company was to develop a SaaS platform for managing water and power distribution systems in rural areas. The platform is based on blockchain technology, and it also incorporates elements of the Internet of Things. The world ’s leading digital agencies specializing in software development have been experimenting with these technologies for a while now, but Bitlumens is the first to use them in such a creative way.

The initial batch of clients for the service were women from remote villages in Guatemala. They were given the opportunity to lease equipment for gathering solar energy, and pay it back in installments with a cryptocurrency called BLS, which was itself based on the popular open-source Ethereum platform. These women authorized Bitlumens’ agents to buy BLS tokens on the open market in their stead, which ensured that the demand for BLS would continue to rise.

In order to sign up for the service, the women gave their fingerprints for the purpose of identification, allowing agents to use this data to log them into the system. This allowed Bitlumens to keep KYC information for the purpose of assessing risks.

BLS has given women in poor areas a way to access state of the art Sun Home Systems. Each of these IoT-ready systems consists of several devices, including a solar panel, a battery, a LED light, a number of electrical outlets, and a whole host of various sensors. After a SHS is installed, the aforementioned sensor equipment is used to measure how much energy is being generated, which determines how much the client has to pay. If a client is unable to purchase tokens to pay for the monthly rent, their relatives can use the platform to send payments in their stead.

Clients are not limited to purchasing a single set of equipment. Once their initial lease is paid off, which takes about 7 months on average with regular payments, they can rent out additional Sun Home Systems. Any excess electricity produced can be sold on the open market.

The Results So Far

Bitlumens chose four locations in Latin America as the initial testing ground for its project. These included Escuintla in Guatemala, Valle Department in Honduras, Chinandega in Nicaragua, and Guarumal in Panama. Countries such as Myanmar in Southeast Asia are the likely to be Bitlumens’ next big market.

Their choice was based around three criteria. First, the country in question had to have a long-standing history of electricity shortages. Second, the country also had to have an appropriate telecommunication infrastructure in place for the system to work. Third, the country had to have an inflation rate below 10% for the cryptocurrency system to work properly.

Of these three factors, the first one held the most influence. The aforementioned countries were notable for their lack of access to cheap, clean energy. They relied on inefficient fuels which produced particulate waste that is harmful to both people and the environment.

Once the systems were in place, the SHS sensors went on to collect energy consumption data, as well as information related to the reduction of the carbon footprint. The users of the service could then sell this information to companies in exchange for carbon credits.

The fact that the system relies on cryptocurrency has allowed banks to get involved as well. Some banks started offering microloans to the users of the service, giving them access to financial capital for the first time. This enabled them to start building up a credit score simply by using a SHS to produce electricity. The banks could also rest easy knowing that their investments can be tracked through the blockchain.

Conclusion

If their Latin American projects prove to be a success, Bitlumens has a pretty good chance of becoming a key player in the electro-distrubution sector. In addition to bringing safer, more eco-friendly electricity to people who need it the most, they are also enabling them to become more active participants of the economy, by helping them build their credit rating, and earn money through selling data and surplus electricity.

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