{"id":21182,"date":"2023-02-21T04:12:21","date_gmt":"2023-02-21T12:12:21","guid":{"rendered":"https:\/\/coinnetworknews.com\/south-african-startup-momint-seeks-to-boost-electricity-generation-using-blockchain-based-solution-bitcoin-news\/"},"modified":"2023-02-21T04:12:21","modified_gmt":"2023-02-21T12:12:21","slug":"south-african-startup-momint-seeks-to-boost-electricity-generation-using-blockchain-based-solution-bitcoin-news","status":"publish","type":"post","link":"https:\/\/coinnetworknews.com\/south-african-startup-momint-seeks-to-boost-electricity-generation-using-blockchain-based-solution-bitcoin-news\/","title":{"rendered":"South African Startup Momint Seeks to Boost Electricity Generation Using Blockchain-Based Solution \u2013 Bitcoin News"},"content":{"rendered":"
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Using a solution that is based on blockchain technology, the South African startup Momint has said the recently launched Suncash initiative aims to ease the country\u2019s power generation challenges. For about $9, investors can reportedly buy non-fungible tokens (NFTs) linked to solar cells which are then leased to institutions such as schools and hospitals. <\/strong><\/p>\n

Momint Pilots Solution at One Local School<\/h2>\n

A South African startup, Momint, recently said it has launched a blockchain-powered solution that can ease the African country\u2019s energy woes by installing more rooftop solar systems at public institutions like hospitals and schools. According to a News 24 report, the startup\u2019s solution has already been piloted at Delmas High School in South Africa\u2019s Mpumalanga province.<\/p>\n

As explained in the report<\/a>, investors that wish to participate in this project can do so by acquiring non-fungible tokens (NFTs) which are linked to solar cells and are sold for a minimum price of just under $9. The solar cells are then leased to institutions that agree to purchase the generated electricity via a so-called standard power purchase agreement.<\/p>\n

Commenting on his company\u2019s solution to South Africa\u2019s power generation crisis, Ahren Posthumus, the CEO of Momint, said:<\/p>\n

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We are a technology company that\u2019s trying to build for the next 15 years, but what we realised is we can\u2019t build a technology company in a country that doesn\u2019t have electricity.<\/p>\n<\/blockquote>\n

Posthumus also claimed that his company does not expect to profit from the project which he described as \u201cnot financially sustainable.\u201d The CEO claimed, however, that his organization chose to pursue this project because it wants to help South Africa overcome its power generation challenges.<\/p>\n

Blockchain Solution Lowers Risks for Momint<\/h2>\n

On why the startup chose blockchain, Posthumus insisted that this not only makes the project transparent but it also lowers risks for Momint.<\/p>\n

\u201cWe take legal contracts that represent ownership of each individual cell, and we put those legal contracts into a file that\u2019s typically referred to as \u2018the token\u2019 on the blockchain. It\u2019s called a smart contract. That smart contract says, \u2018whoever owns this token has the right to the underlying asset\u2019 and they have the right to the revenues that the underlying asset generates,\u201d the CEO reportedly said.<\/p>\n

While the blockchain-based solution is seen as one of the most appropriate ones, it nevertheless comes with its own drawbacks. According to Posthumus, one such drawback is the risk of public institutions defaulting.<\/p>\n

Register your email here to get a weekly update on African news sent to your inbox:<\/em><\/p>\n

What are your thoughts on this story? Let us know what you think in the comments section below. <\/strong><\/em><\/p>\n

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\nTerence Zimwara <\/h6>\n

\nTerence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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