EBN Ecosystem Architecture Overview
Background and Introduction
We live in the age of decentralization amid The Third Industrial Revolution. The Internet decentralized information, giving anyone with a connection access to humanity’s collective knowledge. The web 2.0 and smartphones decentralized the tools of journalism, media, and content creation, giving anyone with a $100 computer the ability to publish their ideas worldwide. Bitcoin and the blockchain gave anyone with the Internet the ability to transmit, receive, and store value — censorship free peer-to-peer (P2P) commerce. Blockchain technology, in conjunction with shockingly steep cost declines for distributed energy resources (DERs) like solar and battery systems, promises to unlock the next great leap in decentralization: distributed energy. Reference EBN’s blog post titled ‘The Third Industrial Revolution’ for additional details.
Although invisible, energy represents perhaps the most important network of all because it underlies each of the others, including providing power for smart devices, transportation (which will soon be electric), and even the Internet itself. That’s why electricity constitutes the largest undisrupted market to date. The total spend on U.S. household electricity alone in 2012 was >$170 bn, which was larger than the entire total addressable market for the core business units of Facebook, Google, Twitter, et al. combined. Reference EBN’s blog post titled ‘Disrupting the Largest Market in the World’ for additional details.
While there’s been a lot of buzz about the potential of P2P or transactive energy (TE) trading that the energy blockchain revolution will facilitate, few understand how we get from our current centralized grid to this decentralized energy trading panacea. This is where Energy Blockchain Network (EBN) comes in. We understand that the true value in this space will be unlocked by those who can 1) create the registry of existing and all new DERs coming online (e.g. solar installed on a roof and working); and 2) rapidly facilitate the installation of these new DERs.
While others focus on the downstream P2P & TE markets, EBN will focus on the upstream supply chain management to facilitate the P2P & TE markets. This is precisely what EBN’s first two energy applications (existing market platforms) are doing today. EBN cultivates a healthy pipeline ecosystem and serves as the link between the upstream supply chain management and downstream P2P & TE markets. For an in-depth discussion and explanation of the DER Project (Asset) Supply Chain Management, please see EBN’s blog post titled ‘Upstream vs. Downstream: DER Supply Chain, Explained’.
EBN will establish interoperable and sustainable network layer protocols and standards to further drive DER asset supply chain efficiencies and scale in the energy industry. EBN will enable future applications in the energy industry to coordinate information, customers, and industry activities via the EBN infrastructure layer.
EBN Ecosystem Process Overview
Every lead and asset will have a unique digital identity and attribute registry made available on a data layer for third parties to build on top of. To build the asset registry, Solar Site Design (SSD) and Correlate will serve as the application layer nodes that organize and validate data submitted by Lead Originators, Scouts, Developers, and Integrators. After the data is validated, the asset registry is updated.
The ecosystem’s cornerstone is to recognize value creation and reward (compensate) the creators (reference definitions below) in near real-time (rewarded progressively or incrementally):
Lead Originator:
Lead Originators generate Leads for DER Assets by submitting data to EBN Platform Hosts at the application layer. Platform Hosts validate data, which satisfies the smart contract and authorizes rewards to be issued to the Lead Originator.
Note: Lead Originators typically lack the technical expertise to work with Developers to define the specifications for the project. A Scout is typically required to organize and develop the Leads and DER Assets.
Scout:
A Scout is focused on adding value to the EBN ecosystem by 1) developing new Leads and DER Assets and 2) creating new DER Asset digital identities and 3) mapping “scouting” digital identities for existing DER Assets. Scouts execute by submitting data to EBN Platform Hosts at the application layer. Platform Hosts validate data, which satisfies the smart contract and authorizes rewards to be issued to the Scout.
Note: Scouts have the technical expertise to work with Developers to define the specifications for the project. This is something a Lead Originator typically lacks.
Developer:
Developers perform development and engineering activities are organized by submitting data to EBN Platform Hosts at the application layer. Platform Hosts validate data, which satisfies the smart contract and authorizes rewards to be issued to the Developer.
Note: The project Developer handles all project development activities from initial site surveys, feasibility studies, financial models, contracts, permits, installation, construction management, and ongoing maintenance and operations contracts. The company manages all parties within the transaction and is responsible for successful completion of the project.
Integrator / Installer:
Integrating and installation activities are documented by submitting data to EBN Platform Hosts at the application layer. Platform Hosts validate data, which satisfies the smart contract and authorizes rewards to be issued to the Integrator.
Note: Integrators (or Installers) are the ones that install the system at a customer site (e.g. solar PV installer). They are a company/business that specializes in bringing together component subsystems into a whole and ensuring that those subsystems function together, a practice known as system integration.
Platform Host:
Platform Hosts are the businesses that run on top of the EBN ecosystem at the application layer. SSD and Correlate would be the initial Platform Hosts running their existing platforms on top of EBN’s platform. They serve as the initially trusted entities to the private (permissioned) network. As the network grows, new Platform Hosts will be added, vetted, and approved to be a trusted entity for their platform application. For example, future P2P & TE energy blockchain firms could run on EBN’s platform.
Platform Hosts will have varying privileges or rights on the private (permissioned) network. Some will only have read access while others will be trusted gates or validators or authorities — the ones who have read/write access to the blockchain. This will be a limited group to ensure the integrity and quality of the ecosystem. SSD and Correlate will be the initial validators (or gate keeps) that the network trusts to organize, manage, and validate data. Over time, existing validators will add new validators to the trust layer so the ecosystem is always moving in a decentralized direction over time.
The figures below illustrates, at a high-level, how value creating participants (lead originators, scouts, developers, integrators) will interact with the platform and be rewarded for their efforts to build the asset registries.
Summarizing the EBN Ecosystem
The ecosystem will be focused on next-generation energy products and services that meet this ecosystem’s goals and develop second layer applications that allow for access to the asset registry data and tracking. The EBN platform will focus on a distributed (community) product that enables and encourages innovative application (second) layer developments and plug-ins that are focused on driving down DER supply chain costs (benefiting the Customer) while rewarding (Tokens/Rewards/Commission) origination, development, and successful project execution.
This is a healthy ecosystem of low carbon-based DER assets that meet or beat fossil fuel options on cost (e.g. solar PV has $0 marginal cost versus the cost of coal or natural gas) while rewarding the next generation of energy professionals that will oversee a long-term engagement with the customer. These interactions and efficiency gains will drive down DER supply chain costs year-over-year.
EBN is building an ecosystem that will lead the Energy Technology Convergence. The mission is to drive DER asset supply chain efficiencies and scale installations for a low-carbon future — today! In our next post, we’ll introduce EBN’s Rewards Program as well as an intriguing discussion that explores the concept of a token economy with token analogies that are familiar. Thank you for following us on this journey as we illustrate how we’re working towards The (Energy) Promise Land.
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