IOEN, an energy-focused project by a group of people passionate about saving the environment, has announced its successful funding. According to the official statement, the project has closed at a $2.8M investment by notable investors and blockchain leaders. They have chosen to use a combination of Holochain and efficient energy use to significantly cut back on total energy requirements and help the integration of renewable energy in communities worldwide.
Cryptocurrency despite its many benefits is detrimental to the environment on a scale that many people choose to ignore. Ethereum and Bitcoin mining alone use up more electricity than entire countries in some cases. Crypto mining is an integral part of the blockchain which involves using computers to solve complex problems. This computational power is used as a verification process for transactions to keep intermediaries out and maintain the integrity of the chain. Although necessary, it is a problem that many have pointed out and hope to solve.
Chains such as Ethereum have chosen to improve on this by changing their mining process from a proof-of-work to a proof-of-stake. This will reduce operational costs by an amazing 99.95% and further make transactions on the chain cheaper and faster. With Ethereum 2.0 already underway we could see a huge downturn in crypto’s environmental effects soon.
Regardless, it highlights a problem that seems integrated into cryptocurrency by default and must be addressed should mass adoption ever be realized. Cutting energy costs has been a constant topic over the past decade in many industries. The effects of climate change are constantly being felt and despite all claims to the contrary, continuation down this path will surely destroy the planet.
IOEN’s Virtual Microgrid Solution
While searching for a way to solve the energy crisis, IOEN has set its sights on developing a greener, scalable, and long-lasting answer. IOEN is a non-profit initiative that seeks to use efficient distribution and management of energy to bring a greener energy alternative to the market. With open-source protocols and cryptocurrency, the project will empower communities worldwide to develop mini- and microgrids of connected devices to promote efficient energy distribution and gradually reduce overall energy requirements worldwide.
As a result, energy needs will be fulfilled via local device consensus. Devices will work to inform one another about the grid’s energy needs and distribute the electricity where it is required. By integrating these grids into society and interconnecting them worldwide, the creation of a global virtual energy grid would give birth to a highly effective energy management system.
IOEN Attracts Huge Investor Support
To further their goals, IOEN has struck decisive relationships with a few names in the crypto space. It announced a $2.8M raise in its private funding rounds amassing various industry tycoons and popular venture funds. SL2 Capital led the round, building on their thesis to back mission-driven founders and support technologies creating new industries. SL2’s approach to incubate and use their extensive capital networks has brought significant investors who share the IOEN vision. Throwing their cap in the ring is Skyman Ventures. Focused on DeFi, gamefi and NFT technologies, Skyman Ventures is dedicated to helping crypto companies grow with capital, media and marketing. Similarly Maven Capital is supporting the project with capital and extensive networks of new crypto protocols.
Holo, AU21 Capital, and Insignius Capital, among others, are also on the list of supporters of IOEN’s journey to a greener earth. With such heavyweight funding and marketing behind them, IOEN’s goal could become a matter of when rather than if.
Holochain leapfrogs the traditional consensus required on conventional blockchains which in turn massively reduces the gargantuan energy consumption required for proof-of-work mining. It also eliminates the requirements of holding tokens to influence the network required by proof of stake while still providing users with essentially the same features. In essence, it becomes a blockchain without the environmental effects. This also reduces the amount of storage required by users on the chain.
It is also worth noting that the Holochain approach to data integrity makes it possible for end-users to both utilize and verify the distributed network’s data. This directly contrasts traditional blockchains, which usually need a considerable amount of hardware expenditure to get participation.
This makes it a very rational option as a choice for any company looking to gain blockchain features without harming the environment.