Solarcoin is an exciting new cryptocurrency with a positive environmental impact at its heart. While it shares the decentralized, distributed-ledger “blockchain” data structure format with Bitcoin, Solarcoin is unlike Bitcoin in that it derives its value from solar energy. Specifically, one solarcoin represents one megawatt-hour (MWh) of solar electricity generated.
What’s the Idea?
The solarcoin foundation was formed to create an additional incentive for producers of solar energy. Solarcoins are traded on the open market, and the market value of solarcoin (SLR) is easy to track. The number of solarcoins (maximum issuance) is limited (to 98.34 billion units) and solarcoins will be distributed to solar electricity producers over the next 40 years.
This gives equity to solar energy producers and provides an economic incentive for generating solar power. The value of Solarcoin is appreciating and has the potential to become a hot commodity (like Bitcoin) in the cryptocurrency market.
How Solarcoin Works
Solarcoin is identical to Bitcoin in the way it is traded. Each unit of solarcoin has a unique signature that is encrypted. A chain of “blocks” track every solarcoin transaction and these decentralized “blocks” of information constantly validate ownership information with each other. This prevents tampering or “hacking” and guarantees the authenticity of each unit of solarcoin.
For a period of 40 years after its introduction, solarcoin will be distributed to any party who can provide proof of generating solar electricity units of Each MWh of solar electricity entitles its producer to one solarcoin. This means that solar power plants or individual households with solar panels can claim solarcoins from the foundation.
How Can I Get Solarcoin?
Solarcoins are generated by solar power producers, but anyone can buy SLR on the open currency market. Likely, solarcoins will remain relatively cheap for decades to come as producing solar power becomes more affordable and common.
However, at the end of the issuance period, solarcoins will only be available on the open market and have the potential to appreciate significantly. This is a reward for early solar producers and is the incentive that SLR provide for today’s pioneers in sustainable solar energy.
If you are interested in a good (very) long-term investment, solarcoins represent an affordable way into the hot cryptocurrency market. A number of Solarcoin wallets are available for free on the foundation’s website.
Of course, you may want to also consider installing your very own solar power system in your home! You can earn solarcoins and contribute to a great cause!
However you get your digital hands on solarcoins, the investment today has the potential to pay out big time down the road.