Through the combination of statistical mechanics and information theory, scientists have been able to design a class of stablecoin that is linked to electricity, known as the Electricity Stablecoin (E-Stablecoin).
According to the research published in Cryptoeconomic Systems, the E-Stablecoin would be minted through the input of one kilowatt-hour of electricity, plus a fee. This new blockchain concept would allow electricity to be transmitted between users who are spread around the world, without the need for interconnecting wires or a grid-based transmission system.
E-Stablecoin could therefore be the first fully collateralised stablecoin, as its value would be pegged to a physical asset – electricity – that is dependent on its utility.
Due to its nature, this stablecoin could solve many of the challenges cryptocurrencies currently face, mostly related to their market volatility. These extreme price fluctuations magnify risks and discourage consumer...