Power Ledger has received many questions amid the excitement generated by our announcement about moving our Powerledger Blockchain to Solana.
We are happy to answer these questions for you now.
As you may know, our Power Ledger platform currently utilises twin blockchains. Our EcoChain Blockchain, which runs on our Ethereum consortium chain, and our POWR tokens, which are on the Ethereum public chain.
Our new Powerledger Energy Blockchain will run on a permissioned Solana-based blockchain and our ERC20 POWR tokens will still remain on the Ethereum public chain.
After many months of research and experimenting with alternative blockchain designs for our Powerledger Energy Blockchain, we decided on a Solana-based chain. While there were many contenders, each with their own merits, Solana offered the most advanced scalability solution currently available for our energy projects.
Solana provides us with the flexibility of short block times of 400 milliseconds and fast throughput of more than 50,000 transactions per second. One of the key factors for us was that it needed to be less energy intensive than existing Proof-of-Work blockchains. Solana provides this utilizing Proof-of-History and Proof-of-Stake consensus mechanisms.
We are also able to provide delegated staking for our POWR token holders, while keeping POWR on Ethereum. Staking with POWR on Ethereum will entitle validators to run nodes on our Solana-based Blockchain, for approved entities. For small POWR token holders, they will have the option to delegate their tokens to a stake pool. Staking rewards will come from Power Ledger’s treasury and fees in the future, if required.
Some basic criteria around who can apply as a validator include entities that are staking for more than one project, DRP implemented, with a minimum hardware requirement, a public web presence, transparency and entities that allow delegation. Our platform customers will also be encouraged to run nodes. We are still considering the criteria, and complete details will be provided once we finalise this application process and the rules for staking.
In choosing Solana for our Powerledger Blockchain, while leaving the POWR token on Ethereum, we are able to stay ahead of the curve providing the best of both worlds. Delegated staking for our POWR token holders, scalability with faster transactions for our energy trading applications, while maintaining the security provided for the POWR token on the Ethereum public blockchain were important factors.
The migration to the new Powerledger Blockchain will commence after all testing is complete. It is expected to begin in the next few months.
As we progress with our development and testing, we will be providing regular updates to our community on our transition.
Until next time!
Cheers,
JB & the Power Ledger Team
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