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.