Proof of Renewable Electricity Production (PREP) Chain:
Executive Summary

Blockchain technology is useful for sustainability-enhancing applications like supply chain track-and-trace for sustainably produced products, carbon credit trading, novel funding and coordination mechanisms for producing and sustaining public goods, and many more. However, the technology has a bad reputation (almost leading to an EU ban!) in sustainability circles because of the huge amount of electricity consumption that keeps the first popular blockchain network (a payments network called Bitcoin) secure. The Bitcoin network uses more electricity than the total estimated consumption of many sovereign nations such as the Phillipines, Finland, Belgium, Austria, the Czech Republic, Colombia, Chile, or Greece to secure the network through a system called Proof of Work on the basis that someone seeking to break the network’s security would have to use more electricity than the entire rest of the network, which would be costly and noticeable.

The second biggest blockchain is a general-purpose world computer called Ethereum, which recently switched from the energy-intensive Proof of Work system to one called Proof of Stake, where the security is based on the amount of capital held rather than the amount of energy burned. Attacking the network’s security would still be very costly and noticeable, but the electricity usage is more comparable to that of a data center than to a mid-sized developed country. However, Proof of Stake has a rich-get-richer effect and is more vulnerable to attack than proof of work, especially from heavily resourced parties like Elon Musk.

Proof of Renewable Electricity Production (PREP) is proposed as an alternative security mechanism which bears security and functionality similarities to those, but it secures the network while directly incentivizing the production of electricity from renewable sources such as wind and solar. The produced electricity can then be used for any purpose at all, but a malicious actor trying to mess with the network’s data security would have to start generating more electricity from renewable sources than the whole rest of the network combined, which would be very costly and noticeable.

If successful, this project could eliminate the huge amount of electricity consumed by Proof of Work networks, including the Bitcoin blockchain, and turn all that economic power into actively incentivizing renewable electricity, on top of all other existing incentives. A lot more economic power will soon be heading into that technology; these are very early days for it. This could also drive enough demand to produce some economies of scale in renewables production, reducing costs for everyone and accelerating progress towards climate-stabilization goals. This project could also enhance the decentralization that is supposed to be one of the core benefits of using blockchain technology, because it lacks the centralization-driving attributes of popular alternatives.

Though backed by the logistical resources of a technology firm with experience and talent in key relevant topics, PREPchain will need significant additional funding to become a deployed reality, and there is no guarantee that the huge potential benefits from a new decentralized network would be captured in the form of direct financial return to those who provide early financial support for developing both the technology and the initial governance consortium. Therefore, grant support and general donations are now being sought. Information on where to send general donations can be found on the home page. If you can offer introductions or connections to significant additional resources, please reach out.