White Paper
Green Kilowatt: a digital currency backed up in green energy that will contribute to the creation of green energy plants worldwide.
1. Introduction
Bitcoin has been accused of consuming excessive non-renewable energy, thus having a negative impact on the environment. This is so because the Proof of Work mechanism consumes too much electricity, and mining companies with revenue maximization objectives have no incentive to use renewable energy for their operations instead. Nonetheless, this is not so for the whole industry, since there are some companies that do utilize green energy, but they operate isolated and have little impact on the mining industry as a whole.Â
Consequently there is a need for a system that provides incentives to mining companies to utilize green electricity instead of non renewable. Moreover, such a system should increase the production of green electricity to meet the future demand, in the event that all miners stop consuming non renewable energy and shift to green.Â
GreenKw is such a system. It is a digital currency that promotes the usage of green electricity by facilitating its access to everyone in the world. Greenkw provides bitcoin miners the proper incentives to operate their mining locations with green electricity. Moreover, Greenkw creates a green mining ecosystem where investors and mining companies participate together, creating a green mining community that will contribute to the creation of green energy plants worldwide.
2. Digital Currency backed up by green energy
GreenKw is a digital currency equivalent to a green kilowatt hour. Such claim is backed by our company (the greenkw foundation), which ensures that every greenkw coin in the market can be exchanged for a green kilowatt hour of green electricity.
Greenkw owner’s can do three things with their coins:
Redemption (option c) is the act of exchanging a greenkw token for a green kilowatt hour of green electricity. The only way to receive such electricity is through the green bitcoin mining network. The green bitcoin mining network is a cluster of several mining companies that mine bitcoins with green electricity. When a greenkw is redeemed, one of these mining companies will use the electricity that was backing such a token in order to operate a bitcoin miner. The owner of the greenkw will receive the bitcoins that such electricity produced, once operating expenses are deducted.
The redemption of a token can be done immediately after purchasing it, even though the green bitcoin mining network (GBMN) needs to have availability to house such token in their plants. There will be times when too many token holders will try to redeem their token simultaneously. In such occasions, they will be allocated according to arrival: first in, first served. A queue of orders will be generated.
As the queue of orders grows larger, the mining companies will have an incentive to increase the production of green energy, in order to supply more green electricity to house those tokens.
3. Every purchase of a greenkw is the creation of green electricity
The reason for this is that when a greenkw is bought, an obligation to deliver such green electricity is created at the very same time, and such obligation is embedded in the token’s smart contract. Thus, when a greenkw is purchased, the green mining bitcoin network will have to produce such electricity to deliver it upon redemption. Thus, it can be stated that an investor who buys a greenkw token is literally creating green electricity.
The green bitcoin mining network serves for two purposes:Â
a) It produces green energy.
b) It ensures that the bitcoins mined with such energy are green bitcoins
Since a bitcoin mined with green electricity cannot be identified from another bitcoin mined with non renewable energy, the green bitcoin mining network will issue a certificate for every greenkw redeemed, so that the owner of such greenkw not only receives the bitcoins mined with such electricity, but a certificate that guarantees that such bitcoins are green. This certificate is another digital currency, called greenbtc, that can be operated in the market as any other digital currency.
The price of a greenbtc, is the value that any individual in the market is willing to pay for having bitcoins mined with green electricity. This model is the same model on which the carbon credit industry operates.
As individuals in our planet grow more conscious of the importance of not consuming non renewable energy, greenbtcs will increase their value, and when this happens, more mining companies will have an incentive to join the green bitcoin mining network, because they will receive a higher monetary reward for creating green energy. This is how the bitcoin mining industry will have an incentive to operate with green electricity.
4. The relationship between GreenKw and GreenBTC
There is a very close relationship between greenkw and greenbtc. However they are two different crypto currencies. Moreover, their price is set by different variables: the price of greenkw will depend mainly on the cost of producing green electricity, while the price of greenbtc will depend mainly on the value that individuals give to the possession of a bitcoins that has been mined with green electricity as opposed to a bitcoin mined with non renewable energy.
Nonetheless, both currencies are correlated since an increase in the price of greenbtc will increase the amount of people willing to buy greenkws. When the demand for greenkws rises, its price rises too. This rise in the price of a greenkw serves as an incentive for the mining companies to produce green energy, as opposed to non renewable. This relationship is the key for the transformation of the mining industry, from non renewable into fully green.
Bitcoin has a weak spot: its negative impact on the environment. The whole crypto community is searching for a solution to such problem. Ethereum, the second largest crypto currency in the world, has managed to fix such problem. However, Bitcoin’s protocol cannot be changed and the POW mechanism will continue in place. Consequently, there is a need for a system that promotes a solution to this problem, and Greenkw is such a system.Â
Exchanges will promote greenkw. Media will talk about it and write about it. So will social networks. Everyone will benefit. The only losers are those who produce contaminating energy.
Frequent questions
You can make your purchase by clicking the buy button. We accept various payment methods*: credit card, debit card, bank transfer and paypal.
*Some payment methods have additional fees depending on the method of your preference.
To make a profit with the GreenKw, you must redeem them at GreenKw/h which will be used to power the miners. and the btc generated with your greenkw/h will be your profit.
The redemption of a token can be done immediately after purchasing it, even though the green bitcoin mining network (GBMN) needs to have availability to house such token in their plants. There will be times when too many token holders will try to redeem their token simultaneously. In such occasions, they will be allocated according to arrival: first in, first served.
