Kontrol looking to blockchain energy and greenhouse gas emissions
Kontrol Energy Corp. (“Kontrol”) (CSE: KNR) announced that it has entered into a binding Letter of Intent (“LOI”) on January 31, 2018 to acquire a profitable and fast growing Blockchain software development firm (the “Target”) operating a successful Software-as-a-Service business that has demonstrated 100% recurring revenue.
Kontrol is a leader in energy efficiency solutions and technology. Through a disciplined mergers and acquisition strategy, combined with organic growth, Kontrol Energy Corp. provides market-based energy solutions to its customers designed to reduce their overall cost of energy while providing a corresponding reduction in Greenhouse Gas emissions.
Kontrol is looking to integrate the Target company into its existing distributed energy and carbon reduction solutions. The Blockchain Paradigm has much to bring to the energy and carbon sectors where transactions are multiple and transaction methodologies can be complex for the serialization of assets.
There is nothing new about the transactions being recorded in a blockchain but the novelty of blockchain is the use of the internet and software to authenticate and store data. In theory it makes things more traceable.
It takes 3 things to set up a blockchain: a network of computers (brains), a network protocol (language) and a consensus mechanism (rules) to validate transactions. Once a transaction is authenticated, it is added to the networked ledger. The addition of a new transaction to the ledger is called a block. The consolidation is a chain of transaction records, a blockchain.
Blockchain offers traceability and ledgering tools that permit anyone along the transactional chain to assess traceability. A blockchain provides a traceable version of the truth permitting to trace origin, authenticity, and movement up and down the supply chain. It makes transactions more transparent and cheaper for everyone along the value chain.
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The LOI contemplates that Kontrol will acquire 100% of the outstanding shares of the Target. Over the past 2 years, the Target has averaged revenues of approximately $6.0 million and generated normalized EBITDA of approximately $1.2 million per year. The Target has an established operating history and entered the blockchain software development business in 2017, attracting a growing portfolio of institutional customers who are seeking to integrate Blockchain and Distributed Ledger Technology (DLT) solutions to better manage their energy consumption, reduce their carbon footprint and improve overall operating performance and efficiency through connected devices and the Internet of Things (“IoT”).
The Target is currently developing applications using the IOTA cryptocurrency and developing its own tokenized crypto platform based on IOTA. The features of the Target’s solutions include, but are not limited to:
- An Open Application Programming Interface (API)
- Peer to Peer marketplace functionality for energy savings, carbon monetization and data analytics
- Crypto/token/fiat wallet (allows conversion between currencies)
- Reward system for energy conservation and corresponding carbon reduction
- Reward system for data feeds and data analytics
- Encrypted cyber-security
- In-app support system
- Document sharing
- Social network features
IOTA is credited for achieving 4 major crypto milestones: zero-cost transactions, offline transactions, theoretically-infinite scalability, and quantum-computer-proof security. Of note, IOTA does not require any use of mining, making it the most environmentally-friendly cryptocurrency. Each transaction requires the user to validate two other transactions, thereby increasing the speed and efficiency of the network. IOTA’s technology is being adopted by leading corporations such as Bosch, VW, Fujitsu and others, putting Kontrol among the leading innovators implementing DLT in production-ready use cases, adding further value to the transaction for Kontrol.
IOTA is an open-source distributed ledger protocol that goes beyond blockchain through its core invention of the blockless Tangle. The IOTA Tangle is a quantum-proof Directed Acyclic Graph, with no fees on transactions and no fixed limit on how many transactions can be confirmed per second in the network. Instead, throughput grows in conjunction with activity in the network; the more activity, the faster the network. Unlike traditional blockchain architecture, IOTA has no separation between users and validators; rather, validation is an intrinsic property of using the ledger, thus avoiding centralization. IOTA is initially focused on serving as the backbone of the emerging Internet-of-Things (IoT).
Dr. Luc C. Duchesne is a Speaker and Author with a PhD in Biochemistry. With three decades of scientific and business experience, he has published ... <Read more about Dr. Luc Duchesne>