The E-stablecoin would need a number of scientific advancements that are being developed and would, allegedly, allow electricity transmission almost for free.
Electricity Stablecoin (E-Stablecoin) Pegged to Electricity
Researchers at Lawrence Livermore National Laboratory in California, a federally funded institution, have pooled together statistical mechanics and information theory to develop a new class of stablecoins known as Electricity Stablecoin (E-Stablecoin). This coin would help to transmit electrical energy as a type of information.
According to Livermore’s Maxwell Murialdo and Jonathan L. Belof, the innovators, their work would make it possible to transmit electricity without the need for a grid or wires. They have also created a completely collateralized stablecoin that is pegged to a known physical asset, electricity, depending on its utility for its value.
E-Stablecoin to Be Minted through One-Kilowatt Hour
The E-Stablecoin would be minted via the input of one kilowatt-hour of electricity and a fee. Then, it would be used for standard transactions just like other stablecoins in circulation today. The energy can also be burnt for a fee. The entire process would be run through smart contracts featuring decentralized data storage. The scientists insisted that there is no central authority that would be needed to maintain or distribute the asset.
Being directly exchangeable for a specific quantity of a physical asset, the E-Stablecoin would be a unique type of digital asset, explained the scientists. They insisted that electricity has a relatively stable price and demand and the energy used for minting the coins would be sustainable. Miners would mint the coins when the electricity prices were low and burn them when the price went down.
Murialdo and Belof said that their coin would follow the proof of concept consensus model and used advanced mathematics to provide reasoning behind it. However, they pointed out that “further advances that increase the speed, transfer entropy, and scalability of information engines will likely be required,”
Their study has some theoretical implications on how cryptos draw value. The scientists published their work in the peer-reviewed journal Cryptoeconomic Systems on Monday.