Blockchain and Storage Layer (Including Smart Contracts)
This layer provides the decentralized infrastructure for transaction processing, carbon credit issuance, and permanent storage, with smart contracts automating key functionalities.
Components:
Blockchain:
Primary Blockchain: Ongrid Protocol uses a layer-2 blockchain Ethereum for transaction processing and smart contract execution.
Consensus Mechanism: Leverages Ethereum’s Proof of Stake for transaction finality and security.
Smart Contracts: Smart contracts are deployed on the blockchain to automate trustless processes, ensuring transparency and efficiency. Below are the key smart contracts and their functionalities:
Investment Management Contract:
Functionality:
Facilitates investments by allowing investors to commit funds to solar projects.
Locks investor funds in escrow until project milestones are met to release funds.
Distributes repayments to investors based on project performance, automatically calculating yields.
Interactions:
Receives energy data from the libp2p network to verify project performance.
Interfaces with the Application Layer to update investor dashboards with portfolio performance.
Example: An investor commits $10,000 to a solar project. The contract releases funds to the solar company upon installation verification and disburses monthly repayments to the investor based on energy generated.
Carbon Credit Issuance Contract:
Functionality:
Processes energy production data to calculate CO2 reductions using predefined methodologies (e.g., aligned with Verra/Gold Standard).
Issues on-chain carbon credits as tokens (e.g., ERC-1155 on Ethereum) for verified reductions.
Ensures compliance with international standards by integrating with off-chain APIs (e.g., Verra registry).
Interactions:
Receives aggregated energy data from the Data Aggregation Service in the Application Layer.
Stores issuance records on Arweave, with hashes recorded on the blockchain for transparency.
Example: A solar project generates 100 MWh, reducing 80 tons of CO2. The contract issues 80 carbon credits, minting them as tokens for the solar company or investor.
Carbon Credit Trading Contract:
Functionality:
Enables a decentralized marketplace for buying and selling carbon credits.
Matches buyers and sellers, executes trades, and transfers carbon credit tokens.
Charges a small transaction fee (e.g., 2%) to sustain platform operations.
Interactions:
Interfaces with the Carbon Credit Issuance Contract to verify available credits.
Updates the Application Layer with market data (e.g., credit prices, trading volume).
Example: An investor sells 50 carbon credits at $20 each. The contract facilitates the trade, transfers tokens to the buyer, and deducts a $100 fee (2%).
Arweave (Permanent Storage):
Stores immutable records of energy data, transaction history, carbon credit issuances, and audit logs.
Indexed using transaction hashes stored on the blockchain, enabling efficient data retrieval.
Ensures transparency for investors, regulators, and carbon credit buyers.
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