South African startup Momint wants to increase power generation with a blockchain-based solution –
With a solution that’s on Blockchaintechnology, South African startup Momint said the recently launched Suncash initiative aims to address the country’s power generation challenges. According to reports, investors can buy non-fungible tokens (NFTs) connected to solar cells, which are then rented out to institutions such as schools and hospitals.
Momint pilot solution at a local school
A South African startup, Momint, recently said it has launched a blockchain-powered solution that can alleviate the African country’s energy woes by installing more rooftop solar systems in public facilities like hospitals and schools. According to a report by News 24, the startup’s solution has already been tested at Delmas High School in South Africa’s Mpumalanga province.
As explained in the report, investors wishing to participate in this project can purchase non-fungible tokens (NFTs) tied to solar panels, which will be sold at a minimum price of just under $9. The solar cells are then rented out to institutions that undertake to purchase the electricity generated via a so-called standard power purchase agreement.
Ahren Posthumus, Momint’s CEO, commented on his company’s solution to the power generation crisis in South Africa:
We’re a tech company trying to build for the next 15 years, but we realized we can’t build a tech company in a country that doesn’t have electricity.
Posthumus also claimed that his company does not expect to benefit from the project, which he described as “financially unsustainable”. However, the CEO claimed his organization chose this project because it wanted to help South Africa overcome its power generation challenges.
Blockchain solution lowers risks for Momint
When asked why the startup chose blockchain, Posthumus insisted that not only does it make the project transparent, but it also lowers risks for Momint.
“We take legal contracts that represent ownership of each individual cell, and we put those legal contracts in a file typically called a ‘token’ on the blockchain. This is called a smart contract. This smart contract states, “Whoever owns this token has the right to the underlying asset” and they have the right to the revenue that the underlying asset generates,” the CEO reportedly said.
Although the blockchain-based solution is considered to be one of the most suitable, it still has its own disadvantages. According to Posthumus, one such disadvantage is the risk of insolvency of public institutions.
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Source: Crypto News Deutsch
