Distributed Ledger Tokenization for Renewable Energy Distribution
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Solution Overview
Problem
Excess renewable energy produced by individuals or businesses is often left unused or resold to the main utility grid, losing its renewable characteristic, as there is no efficient system for its distribution and transfer to willing consumers.
Innovation Solution
A system utilizing a distributed ledger network for tokenization, recordation, payment, and settlement of renewable energy assets, allowing producers to tokenize their energy and make it available on a marketplace, where consumers can purchase it using tokenized currency, with smart contracts facilitating the transfer of energy even in the absence of a network connection.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of energy
If excess renewable energy is resold to the main utility grid via net metering, then the energy can be transferred and compensated, but it loses its characteristic of being derived from renewable sources
Solution Approach 1:
The patent segments the energy distribution system into a distributed ledger network that tracks individual renewable energy transactions between producers and consumers. This segmentation allows renewable energy characteristics to be preserved through tokenization and direct peer-to-peer transactions, avoiding the loss of renewable attributes that occurs in centralized net metering systems.
Solution Approach 2:
The patent introduces a distributed ledger network as an intermediary layer between renewable energy producers and consumers. This intermediary uses blockchain technology to tokenize energy transactions, preserving the renewable characteristic of the energy while enabling direct trading without requiring centralized grid intervention.
2Productivity
If a distributed ledger network is used for tokenization and offline transactions, then renewable energy can be efficiently distributed to willing consumers while maintaining its renewable characteristic, but the system complexity increases
Solution Approach 1:
The patent creates a universal distributed ledger network that performs multiple functions: tokenization of renewable energy, tracking of energy transactions, verification of renewable characteristics, and facilitation of offline peer-to-peer transactions. This multi-functional system improves distribution efficiency while consolidating complexity into a single platform.
Solution Approach 2:
The patent changes the state of energy transactions from physical-only transfers to tokenized digital representations on a distributed ledger. This parameter change enables offline transactions and preserves renewable energy characteristics through cryptographic verification, improving distribution efficiency while managing system complexity through standardized protocols.
3Extent of automation
If smart contracts are used to facilitate asset exchange, then automated payment and settlement can occur, but the system requires network connectivity which may not always be available
Solution Approach 1:
The patent implements preliminary action by enabling smart contracts to be queued locally on devices before network connectivity is established. Transactions are prepared and validated in advance, then executed automatically when the distributed ledger network becomes available, ensuring automated exchange functionality regardless of network availability timing.
Solution Approach 2:
The patent introduces dynamic transaction processing where smart contracts can exist in multiple states: queued locally when offline, pending validation when reconnecting, and executed when confirmed. This dynamic approach maintains automated exchange capabilities while adapting to varying network availability conditions, improving system reliability.
Data Source
AI summary
Systems and methods for tokenization, recordation, payment, settlement, instruction, retirement, data management, and output of intelligent data related to assets and asset attributes are disclosed. A method may include: (1) generating or receiving, by a computer program for an asset producer or seller, an asset; (2) storing, by the computer program for the asset producer or seller, the asset; (3) tokenizing, by the computer program for the asset producer or seller, the asset on a distributed ledger network; (4) making, by the computer program for the asset producer or seller, the asset available to a consumer on a marketplace; (5) purchasing, by a computer program for the consumer, the asset with tokenized currency; (6) exchanging, by a smart contract executed on the distributed ledger network, the tokenized asset for the tokenized currency; and (7) causing, by the smart contract, the stored asset to be transferred to the consumer.