Whitepaper
Whitepaper Last Updated: September 25, 2024
1. Introduction: deRECs redefines how renewable energy production is tracked, verified, and rewarded through the use of blockchain technology and NFTs. By leveraging the Polygon blockchain, deRECs allows individuals and businesses to tokenize their energy production and receive non-fungible tokens (NFTs) that represent verifiable proof of renewable energy generation. These NFTs can be traded, sold, or held, offering both financial and environmental incentives to participants. This whitepaper outlines the deRECs ecosystem, its technical architecture, and the value it brings to energy producers and buyers.
2. Overview of deRECs: deRECs leverages the ERC-721 standard to create unique NFTs that represent renewable energy credits. Energy producers claim deRECs by submitting proof of their renewable energy production, starting with net-metered solar energy. Once verified, an NFT is issued, providing full ownership and control to the energy producer. These tokens can be traded on decentralized marketplaces, giving producers flexibility over how they manage their rewards.
3. The deRECs Ecosystem: The deRECs platform connects energy producers, buyers, and renewable energy projects. Energy producers can submit claims based on the renewable energy they generate, while buyers can purchase deRECs to offset their carbon footprint or invest in renewable energy projects. A 5% royalty is applied to each transaction, which funds the platform’s growth and helps support global renewable energy projects.
4. Technical Architecture: deRECs is built on the Polygon blockchain, a Layer 2 solution for Ethereum that offers scalability and low transaction fees. The platform utilizes ERC-721 smart contracts to mint, trade, and manage NFTs. Each deREC is a verifiable, tamper-proof token that represents a unit of energy generated. Smart contracts also automate royalty distributions, ensuring that renewable energy projects are continually supported.
5. Renewable Energy Integration: Currently, deRECs supports net-metered solar energy, where users provide utility bills showing the energy returned to the grid. In the future, deRECs will expand to support all forms of solar energy, as well as other renewable sources such as wind, hydropower, and geothermal. The platform will also integrate with APIs for seamless, real-time data submission and verification.
6. NFT Issuance and Claim Process: Energy producers can submit a claim through the deRECs Claim Form. This form requires basic details, including the producer’s name, email address, Polygon wallet address, the physical address of power generation, and proof of net-metered energy production (via a utility bill). Claims are verified before NFTs are issued, and this process can be repeated monthly. Producers have full ownership of their NFTs, which can be held, traded, or sold.
7. Use Cases and Benefits: deRECs offers energy producers the opportunity to monetize their renewable energy production by trading or selling their deRECs. Buyers can use deRECs to offset their carbon footprint, contributing to global sustainability efforts. The NFTs also serve as verifiable proof of renewable energy generation, creating an additional layer of transparency and accountability in the renewable energy market.
8. Platform Sustainability and Revenue Model: deRECs is funded through a 5% royalty applied to each transaction involving deREC NFTs. This fee supports the platform’s ongoing development and contributes to renewable energy projects. As deRECs expands, additional revenue streams may include premium services for large-scale energy producers and enterprise-level solutions for managing renewable energy credits.
9. Roadmap: deRECs aims to expand beyond net-metered solar energy, introducing support for wind, hydropower, and geothermal energy. The platform will also integrate with API systems to streamline data submission and verification. Future goals include creating global partnerships with governments and organizations to standardize decentralized renewable energy credits.
10. Conclusion: deRECs is revolutionizing how renewable energy production is rewarded by combining the security of blockchain with the transparency of NFTs. By empowering energy producers to tokenize their contributions, deRECs creates new financial opportunities and supports global sustainability efforts. With plans for future expansion, deRECs aims to become the standard for decentralized renewable energy credits worldwide.