A new cryptocurrency that transmits electricity

The US Department of Energy's Lawrence Livermore National Laboratory has unveiled its new development, the E-Stablecoin cryptocurrency, which, in addition to its primary function of storing savings, allows for the transfer of electrical energy from user to user via the blockchain.

The idea behind this new cryptocurrency is that it will allow electricity to be transmitted anywhere in the world. It will also help solve the problem of cryptocurrency stability. No wires or special networks will be required for electricity transmission. This is the first cryptocurrency token to be backed by a physical asset with intrinsic value, while maintaining the core idea of ​​cryptocurrency: decentralization.

Follow us onFacebook,Telegram,Twitter And Instagramso you don't miss anything!

Backed and unbacked currencies

Cryptocurrencies can be divided into two categories: those backed by more conventional assets—collateralized—and those not backed by them, or uncollateralized. The first category includes, for example, Digix, a gold-backed cryptocurrency. It is claimed that eachtokencan be exchanged for one gram of gold. The second category includesBitcoin, which does not claim to be backed by any physical asset.

Both backed and unbacked cryptocurrencies have their pitfalls.

For backed by cryptocurrenciesIssues of storage and security of supporting assets must be addressed. Furthermore, decentralization, a key concern for many investors, is more difficult to address. Supporting assets are typically controlled by one or more organizations that ensure their safekeeping. Trust in cryptocurrencies must be accompanied by trust in the companies that safeguard the assets.

Cryptocurrencies,unsecuredValuable assets avoid the problems associated with asset collateralization, but can only sustainably maintain their value if enough people believe in its value. This is called the "output value hypothesis" (EVH). The hypothesis suggests that an asset, initially lacking intrinsic value, acquires value by attracting consumers and increasing awareness and popularity. EVH-based cryptocurrencies experience high price volatility, which affects trust.

In response to the high price volatility of unbacked cryptocurrencies such as Bitcoin or Ethereum and the difficulty of decentralizing backed cryptocurrencies, stemcoins were created.

Steblicoin

A stemcoin is a cryptocurrency that has a stable price relative to other currencies or assets, which reduces risks for buyers and sellers.

However, there has never been a single stemcoin that was hard-linked to any decentralized physical asset with intrinsic value.

There are three classes of stemcoins:

1. Fiat-backed – fiat currency is stored in a reserve vault;
2. Cryptocurrency-backed – hold another cryptocurrency as collateral on the blockchain;
3. Unsecured – have no collateral.

Each of these options has its pros and cons. Ideally, a stemcoin should have two key characteristics:

• backed by a physical asset with intrinsic value;
• decentralization.

New Steblicoin

A new cryptocurrency created by Lawrence Livermore National Laboratory combines these characteristics. E-Stablecoin is relevant to both the digital and physical worlds, allowing the storage and transfer of energy in the form of information.

The idea for this cryptocurrency was inspired by an imaginary experiment conducted by British physicist and mathematician James Clerk Maxwell back in 1867. What was the essence of the experiment?

Maxwell's Demon

Let's imagine a vessel divided into two parts and filled with gas. A hole with a device is installed in the dividing wall, allowing heated molecules to pass only to the right side of the vessel, while cold molecules pass to the left. The "demon" opens the hole, estimating the temperature and velocity of the molecules. After some time, only heated molecules will be in the right sector, and cold molecules will be in the left.

It turns out that, with the help of the demon, part of the vessel heats up, while the other part cools down, without any additional energy input. Furthermore, by the end of the experiment, the entropy in the vessel's compartments decreases, which contradicts the second law of thermodynamics, according to which entropy in closed systems either increases or remains constant.

Researchers at the U.S. Department of Energy's National Laboratory have described how, using the connection revealed in the experiment, they can create a cryptocurrency token that is powered by electricity and can be converted into a unit of energy.

How does this work?

It takes one kilowatt-hour (kWh) of electricity to mint one E-Stablecoin. The token can then be destroyed, recouping the energy used to mint it. Thus, the price of one E-Stablecoin is securely tied to the price of one kilowatt-hour of electricity.

Maxwell Murialdo reported that anyone can create E-Stablecoin with the right amount of electricity. It can be used to perform any cryptocurrency transactions. It can then be converted back into electricity. This will not require power lines, people, or companies.

What makes E-Stablecoin unique?

As we've written above, the key problem with many cryptocurrencies is volatility—sharp fluctuations in exchange prices. These fluctuations make buying cryptocurrency a rather risky proposition, which reduces consumer transactions and long-term smart contracts.

Backing a cryptocurrency with external assets prevents it from being completely decentralized, which contradicts the core idea of ​​cryptocurrencies. And the lack of backing affects the cryptocurrency's volatility.

E-Stablecoin is the first concept to back cryptocurrency with a physical asset without centralizing the backing. The E-Stablecoin concept further envisions distributing electricity to remote regions without grid access, as well as reducing the impact of energy on climate change.

Resume

Researchers at the U.S. Department of Energy's National Laboratory who developed E-Stablecoin believe their project is a new class of stablecoins that combine decentralization and stability by being backed by physical assets with intrinsic value.

And the creation of a stable business development helpswebsitecompany. The appropriate one will add uniqueness to itdomain.  And a correctly selected one will ensure reliable operationhosting. It is also worth considering the protection of your clients that will be providedSSL certificate. 

These and other services can be found atNIC.UA.