Greetings Ethereum geniuses,
I was hoping to get some feedback into how a marriage between SolarCoin and Ethereum would work in theory and in practice. I'm not an official representative for SolarCoin but I am a volunteer and avid supporter of the concept because something needs to be done to put the brakes on CO2 going into the atmosphere ASAP or we're all screwed. It may be the case that the SolarCoin dev team has already been in touch. If so, I would still like to have a discussion on how using Ethereum on our pre-mined "proof of generation" coins would work. It seems to me that it would work incredibly well...
First, a brief background on SolarCoin for those who may not be aware of the Foundation and the goals set forth.
The idea is to incentivize solar power generation over the next 40 years by granting coins to solar producers based on the following fixed relationship:
1 SolarCoin = 1 MegaWatt hour of verifiable solar generation (or 1 SLR = 1 MWh)
A target stable value of $20 per SLR within four years is the expectation.
There will be a total of 98 billion coins based on the IEA’s prediction that there will be 98 billion megawatt-hours of electricity generated from solar over the next 40 years. 99.4% of these coins were pre-mined and are held in the SolarCoin Foundation non-circulating generator pool account. The verification mechanisms for distribution of these coins is being established right now and the granting has begun. See the map here: http://solarcoin.org/generators/
The rules of the contracts vary for each country and even differ within countries. The ideal method for verification is through the use of smart meters, but those are not in place across the globe just yet, so there will be a variety of "rules" governing the granting of coins depending on location and type of system. Also, the verification mechanism right now is manual and the goal is to have it automated and decentralized.
This is where I think Ethereum can be used to help us achieve our goals. It's my understanding that once the rules of the contract are identified, those rules can be coded and the granting of coins from the Generator pool can be housed on an Ethereum blockchain. The transactions using SLR after they've been granted can still be done on the SLR Blockchain. In short, the "granting" of the coins is done on a secure, decentralized Ethereum blockchain and the "use" of the coins is done on the SLR (bitcoin protocol) blockchain with Ethereum coding being used to bridge the two. That way, people claiming their coins can feel safe providing personal information for entering the contract to get their coins and they can feel secure that the use of those coins is not connected with their identity.
If I'm thinking through this correctly, there could even be code put in place that could replace lost or stolen coins. For example, the ethereum blockchain would know how many coins were granted and to what address they were sent on the SLR blockchain. If the person who originally claimed the coins had their computer fry up and lost their private SLR keys, a request could be made to get the coins back. This may require a small percentage of the generator pool coins be held specifically for such insurance, but it's certainly not out of the question. I'm likely getting ahead of myself here though...
There are many questions I have but I'll try to keep it simple:
1. Is my understanding of this flawed somehow? If so, how?
2. How does Ether fit in?
3. Can the SolarCoin Foundation itself become a DAO once all of the coding and rules are defined and put in place? (I assume yes)
4. Would there need to be a relationship between the Foundation and Ethereum to get this up and running? Or does the Foundation need to get volunteers familiar with ethereum coding so that we can do it ourselves? Or both?
Thank you all for your time, I appreciate any feedback you may have and I will share this on our own forums as the implementation ideas begin to flow. I have an Engineering and Finance background but I am by no means a programmer or computer scientist, so forgive my ignorance if I make assumptions that don't hold up in terms of coding. I'm here to learn.
For more information on SolarCoin, you can jump down the rabbit hole here: http://solarcoin.org/faq-frequently-asked-questions/
For more information on the underlying economic model that drove the idea, I strongly recommend reading this paper by two of the founders: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1802166