What is the "Green Energy + Computing Power + Smart Devices" New Impossible Triangle?

Original Article Title: "What is the New 'Impossible Triangle' of 'Green Electricity + Computing Power + Smart Devices'?"

Original Article Author: Kai Ye (WeChat/Twitter: YekaiMeta)

--Building a sustainable smart ecosystem, pioneering the asset framework integrating distributed green electricity and AI computing power, the Green Electricity and Computing Power RWA Mode Design is a must-read!

--The RWA of Green Electricity New Energy and AI Computing Power fulfills all your ideas and fantasies. But Kai dares to bet that you will not be able to read it word for word or understand it word for word~~~

The previous article "‘Green Electricity + DePIN + AI’ Is the Best RWA Asset" elaborated on the ecological framework of Green Electricity + AI supported by DePIN, stating that the underlying support of the past two decades in finance was "land + real estate," while the underlying support of the next two decades in finance will be "green electricity + computing power + DePIN."

During this period, new RWA projects have been continuously validating the article's viewpoint, especially RWA issuance projects compliant with Hong Kong regulations have almost all revolved around green electricity and computing power. The framework in the latter half is the new 'Impossible Triangle' of 'Green Electricity + Computing Power + Smart Devices (DePIN),' elaborating on green electricity computing power assets, RWA modes, the new financial system, and new smart devices.

It is well known that behind high computing power is high energy consumption, fundamentally an issue of energy supply and carbon emissions. To achieve higher computing power, higher energy consumption and more energy may be needed, leading to potentially higher carbon emissions. We can observe a set of data: in 2023, Amazon announced an aggregated capacity of 8.8GW in corporate power purchase agreements; in the same year, Meta disclosed a 3GW corporate power purchase agreement; in May 2024, Microsoft signed over a $10 billion clean energy purchase agreement; at the beginning of the year, Apple's product launch event video showcased the scrutiny of Apple's zero-carbon journey throughout. Additionally, OpenAI CEO Sam Altman publicly stated, "The two currencies of the future will be computing power and energy, and AI technology depends on an energy breakthrough."

Ultimately, the challenge faced by green computing power is the carbon efficiency of computing power, needing to not only consider the higher energy consumption of computing power but also the carbon emissions of computing power (how green it is).

1. Underlying Asset: Distributed Green Computing Power Beneficial Asset

The cognition of Green Energy Mining Power Assets is easily bound by traditional constraints and needs to be peeled back layer by layer to see.

Individual mining power assets are relatively easy to understand, mainly AI power (now subdivided into different categories such as Intelligent Computing and Supercomputing, all of which are just classifications of power equipment), and then there are special assets like Bitcoin mining power. Although the petrodollar system is crumbling, energy is still the core foundation, just with a trend towards green energy. The uniqueness of Bitcoin mining power lies in the fact that Bitcoin may next become the reserve asset of the United States or more countries, even anchoring part of their currency and national debt, which means that a large amount of underlying assets also need to be associated with Bitcoin, with the most direct relationship being Bitcoin mining power.

Individual green energy assets are also relatively easy to understand. Green energy is the core energy of the earth, directly converted from solar energy. There may be various renewable energy generation assets mainly based on photovoltaics, energy storage assets, new energy vehicle and charging infrastructure assets, Renewable Energy Certificates (RECs), and carbon credit assets around green energy. Especially in terms of photovoltaic energy storage, charging, green energy certificates, and carbon credits, there are already many distributed 2C assets targeting households or end users. The ultimate goal of AI is green energy, and the ultimate goal of Bitcoin mining power is also green energy. The ultimate goal of basic manufacturing industries such as steel and aluminum is also green energy, as they are not only high-energy-consuming industries but also industries that require green emission reduction. Even based on household distributed energy equipment, in the future, humans may all become carbon-based or silicon-based synthetic bodies: "brains in a vat" or "brain + robot," which means that any industry and individual operate based on "green energy + AI power."

The green energy P2P transactions and VPP microgrids mentioned in the previous section, whether in China where the market is not fully open to direct power sales or in Europe and America where P2P transactions are allowed, all face a core issue: most VPP microgrids are interconnected and cannot escape reliance on the public power grid's transmission and distribution network. Currently, the only way to achieve off-grid solutions is through local area solutions, such as certain large enough spaces like mining farms, industrial parks, and factory areas that can achieve complete off-grid status through the supplementation of photovoltaics and other renewable energy sources, enabling true VPP and P2P transactions. The only model for interconnected VPP and P2P transactions is: "Green Energy + AI Power + Smart Devices (DePIN)."

This leads back to this consensus: "Green Energy > Electricity > Power > Basic Model > Application." The core of solving interconnected and P2P transactions is to step back and start from applications and basic models, meaning that the optimal trading asset is not green energy or simply green energy assets + mining power assets, but rather green energy mining power beneficial assets, combining green energy and AI power to provide for large models or application models for distributed pre-training, inference, rendering, and other applications.

Green Compute Power Beneficiary Asset

A beneficiary asset refers to the right to use and receive benefits from green compute power assets, rather than ownership. Transaction holders can use green compute power assets within an agreed-upon period and receive benefits without needing to own the asset itself. Due to physical or legal restrictions, green electricity cannot be directly peer-to-peer transferred. The beneficiary asset transaction provides the right to use green electricity and AI compute power, completing specific computing tasks with green compute power. Clients receive the computing results, enjoying the utility value of green compute power rather than owning the green electricity or AI compute power assets. In essence, this aligns with the model of AI compute power services, where clients hold the beneficial rights of the compute power asset.

As the green compute power beneficiary asset is dissipative and time-bound, such as GPU hours or green GPU hours, the smart contract of the beneficiary asset transaction needs to specify the period, scope, pricing method, benefit mechanism, task validation method, etc., to facilitate the smooth transaction.

Therefore, the core underlying asset is the green compute power beneficiary asset, no longer DER distributed energy resources but DGCR (De Green Computing Re) distributed green compute resources. This resolves the core issue of VPP and P2P transactions, shifting from grid-connected green electricity to off-grid DGCR. Moreover, AI compute power and distributed model optimization can provide optimization of DGCR in terms of green energy management, dynamic allocation of green compute resources, and efficient utilization of green compute resources.

This part also involves the development of Distributed Artificial Intelligence (DAI), also known as decentralized AI compute power. It avoids large-scale, high-energy-consumption centralized supercomputing centers and instead relies on distributed green computing or edge computing, realizing a new way to reconstruct how distributed green energy infrastructure interacts complexly among the environment, physical devices, compute power, and end-users. The advancement of distributed compute power also propels the construction of new technologies like edge computing to build pre-training gateways or inference gateways, achieving distributed decomposition of large model pre-training or inference tasks and edge computing.

Building upon this, as a dissipative asset with a time attribute, the green compute power beneficiary asset can receive distributed compute power tasks over the network and complete transactions. Some compute tasks in unsaturated centralized green compute power centers can also participate in the liquidity provision of green compute power beneficiary assets, pledging idle computing power into pools by the hour. The liquidity AMM algorithm of the green compute power trading platform directly achieves optimal allocation. This realizes the marketization of green compute power, addressing issues such as demand imbalances, real-time tasks, instant computation, non-time-sensitive computation, while combining edge computing with individual scenarios and data, potentially unlocking more derived value.

The green computing power asset for beneficial use needs a new consensus, which we call the PoGCS consensus. On-chain, there is a mechanism for green electricity computing power asset pooling, which can involve green electricity and computing power pooling separately or through a common DePIN smart device binding for pooling. The on-chain green electricity computing power asset involves rights confirmation, positioning (distributed unique location address and rights confirmation, etc.), and coordination of pooling conditions (staking for pooling, random time for pooling, limited conditions for pooling), and the smart device can also apply to become a lightweight node on the green computing power blockchain, achieving a Blockchain-as-a-Service (BaaS) for green computing power.

The best model for on-chain green computing power asset is not to onboard devices and data but for smart devices supported by DePIN to directly become distributed lightweight nodes on the green computing power blockchain. The key question is: What kind of smart devices will your green electricity computing power RWA project design?

II. Green Electricity Computing Power RWA Mode

Green electricity computing power RWA is not limited to the green electricity computing power beneficial use asset. Both green electricity and AI computing power assets have different asset packaging design modes, including REC green electricity certificates and carbon credit assets. The underlying assets of RWA correspond to on-chain asset pools, such as green electricity asset pools, computing power asset pools, or even green computing power asset pools based on the combination of on-chain node smart devices, among others. In terms of expected income and operational cash flow, this includes tasks such as long-term agreements for computing power, random distributed inference tasks, and operational income from green electricity asset storage and charging.

Due to the green and low-carbon concept of green electricity, a green computing power center can issue traditional new infrastructure computing power center green bonds or green ABS. If it is a green computing power cluster or a dispatch-operated green computing power center group, it can establish a virtual green computing power asset pool, package it into a green computing power beneficial use asset bundle, issue green computing power fixed-income bonds, and establish a green computing power guidance fund. Both the former's green computing power ABS and the latter's green computing power beneficial use asset bundle require the establishment of a reasonable mezzanine SPV or trust structure.

Green electricity computing power RWA needs to learn from real estate finance models and establish a green computing power capital model.

The green computing power capital model divides green computing power assets into different categories and stages of development, establishes different green computing power funds or Crypto Funds, involves public companies in the traditional financial market, issues RWA tokenized asset packages in different models, and combines liquidity pools and trading platforms to issue liquidity NFTs (digital asset securitization/equity certificates);

Based on RWA asset collateral, issue a green computing power stablecoin, further generating a green computing power Crypto Fund and green computing power industry payment settlement investment PayFi;

Based on RWA asset collateralization and applications such as PayFi, a green computing power platform Token (crypto asset stock) will be issued based on regulatory compliance in Singapore/Dubai, allowing the green computing power Token to be used for proposal submission, decision-making, and issuance of additional financing;

Establish the Future Crypto Fund to use the green computing power Token to acquire new green computing power assets and issue new RWA asset packages;

Meanwhile, based on Renewable Energy Certificate (REC) and carbon credit assets, issue carbon asset NFTs and carbon coins, establish a carbon asset narrative and green computing power community, and create a green computing power ESG investment fund based on carbon coins.

RWA Standard Investment Model

The standard investment model for green electricity computing power RWA adds an AI computing power component to the green electricity ecosystem, resulting in three types of standard investment models. This standardized investment model often corresponds to standardized intelligent devices:

First is the green intelligent energy station, a 2B model of integrated solar energy storage intelligent energy station with rooftop photovoltaics + AI computing power, along with supporting charging, gaming entertainment consumption, regional AI computing power inference and rendering tasks, peak shaving and valley filling electricity price arbitrage, and other green computing power application scenarios, to create a typical standardized green intelligent energy node. Standard nodes can accurately account for the overall input, actual output, and investment return cycle of the node.

Second is the green intelligent charging and storage pile, a 2B model of green (solar/nuclear) energy with energy storage and AI computing power charging piles, with batch distributed charging and storage station equipped with power distribution equipment and AI computing equipment, forming a regional green electricity computing center, also a typical standardized node for green intelligent charging and storage calculation.

Third is the green intelligent home solar charging and storage integration, a 2C model of a standardized green home investment model. In Europe and America, some households follow the farm model, equivalent to a small-scale 2B commercial charging and storage integration. If based on standardized intelligent integrated devices, the green intelligent home with "rooftop solar + household storage + new energy vehicle + home AI computing center + robot/VR/game, etc." can also be developed into a standard green intelligent home solar storage and charging investment model.

Green Electricity Computing Power RWA Product Protocol

Common RWA product protocols are generally based on fixed-income rights models based on expected income and operational cash flow, so both green electricity and computing power assets can have their own fixed-income RWA products.

For example, for green electricity RWA products, there can be debts from charging pile income rights, generation-side energy storage, business-side industrial and commercial energy storage income rights, as well as generation-side generation income rights; while for AI computing power RWA, there can be debts from AI computing power leasing income rights, stable cash flow from ABS supported by AI computing power equipment assets, and more.

Of course, the most core part is the Green Energy Mining Power Real World Asset (RWA) innovation. With the support of smart device nodes, green electricity and mining power assets can form a virtual green mining power asset pool, upon which a series of Green Energy Mining Power RWA protocol innovations are built.

The Green Mining Power Virtual Asset Pool uses smart device nodes to utilize the benefits of green electricity and AI mining power assets through an asset pooling algorithm protocol to enter a transparent, controllable green mining power asset pool classified by device type. Based on the Proof of Green & Clean Supply (PoGCS) consensus, pooled assets can be staked to issue Green Mining Power RWA benefit assets (available for lease/trade), with platform tokens staked into the liquidity pool. Green mining power consumers stake to issue mining power demand contracts into the liquidity pool, describing their specific AI task requirements (such as model training, inference, rendering, etc.), and stake tokens as incentives upon task completion. The liquidity pool utilizes a decentralized Green Energy Mining Power RWA asset trading algorithm, namely an Automated Market Maker (AMM) mechanism and AI intelligent algorithm, to achieve dynamic trading and optimization of Green Energy Mining Power RWA assets, based on an improved dynamic algorithm optimizing asset transaction prices and liquidity allocation.

The improved AMM algorithm, based on the dissipative nature of green electricity and AI mining power assets, adds a time dimension for update polling (hours) to periodically poll the status of Green Energy Mining Power RWA assets within the liquidity pool to ensure smooth asset trading. Task completion verification mechanisms can employ technologies such as recursive zero-knowledge proofs to verify the completion status of each node's green mining power computation task.

The RWA protocol issues RWA asset packages for staked Green Energy Mining Power RWA benefit assets, open to secondary market investors who can invest as LPs in the liquidity pool; simultaneously, the RWA protocol generates position NFTs based on mining power demand contracts and asset transactions, providing holders of position NFTs with token income and incentives from completed mining power contracts. These position NFTs can be directly exchanged within the liquidity pool or traded on the secondary market, without affecting the execution of mining power demand contracts. Additionally, these position NFTs can be used as collateral for lending, acquiring token liquidity, and further investing in green mining power assets.

The liquidity trading algorithm and liquidity pool essentially form the core of an RWA exchange, which can also be expanded into a vertical Green Energy Mining Power RWA trading platform.

Building upon the Green Energy Mining Power RWA asset products, further development can provide green mining power asset pledging, lending, insurance, options, and other financial products, offering a diversified investment choice for device providers and liquidity providers. Using the green mining power assets in the virtual asset pool as reserve assets, a stablecoin pegged to Green Energy Mining Power can be issued, offering a value-stable tool based on green mining power assets. Furthermore, developing a Green Energy Mining Power index can anchor the price of the stablecoin.

Stablecoins can be used for payments, collateralization, and settlement related to green energy and AI computing power, enhancing the market liquidity of green computing power assets.

Green Energy Computing Power RWA Multilayer Market Design

Borrowing from the U.S. Treasury Bill model, the capital market design of Green Energy Computing Power RWA can be divided into four layers:

Layer one involves issuance in the form of traditional bonds on licensed compliant exchanges, such as compliant brokerage firms and exchanges in Hong Kong or licensed institutions in Singapore, completing the private placement and primary market of Green Energy Computing Power RWA products;

Layer two adopts a T-Bill-like model where compliantly issued tokenized securities products of Green Energy Computing Power RWA assets, based on compliant regulations in Singapore or Dubai, are pledged to issue the secondary layer's green computing power governance or platform tokens on licensed exchanges in Singapore or Dubai, forming a secondary market supported by Green Energy Computing Power RWA underlying assets and issuing a green energy computing power stablecoin based on a compliance framework;

Layer three combines ATS and offshore exchanges to create a Green Energy Computing Power liquidity pool based on the underlying assets of Green Energy Computing Power RWA, green computing power governance or platform tokens, and stablecoins, or expands to a Green Energy Computing Power RWA exchange, further developing DeFi products such as lending, insurance, futures, options, and TRS based on a compliance framework;

Layer four integrates the expansion of the Green Energy Computing Power ecosystem, green energy certificates REC, and carbon credit assets from various industrial sectors and scenarios, especially integrating household green energy computing power smart devices from 2Cs, issuing carbon coins based on Singapore's compliance design as an intermediary bridge for carbon asset tokenization to connect China's CCER and Europe's CER carbon emission reduction.

III. New Financial System of Green Energy Computing Power

The underlying support for the next-generation financial system over the next twenty years will be "Green Energy + Computing Power + DePIN," just as the underlying support for finance in the past twenty years was "Land + Real Estate."

At the asset layer, the most crucial asset is green energy, as the energy strategy will shift to green energy; another is computing power assets, including mainstream AI computing power and specific BTC computing power. Green energy and computing power assets enter a distributed VA asset pool via the DePIN distribution protocol and smart devices, with other FA assets and alternative assets entering the pool through various infrastructures, side chains, or DePIN technology.

The key to the DePIN distributed protocol and smart devices is the ability to run lightweight nodes on the chain based on the proof of work of physical devices, thereby realizing the RWA infrastructure of the new financial system, i.e., BaaS (Blockchain as a Service).

A distributed VA asset pool, pooling, and controllable assets are key, establishing an asset Oracle mechanism. Then further based on the Staking pledge model, form different controllable, usable virtual asset pools, such as virtual green energy asset pool, virtual computing power asset pool, and virtual green computing power benefit asset pool, etc., and have a node-combined DAO mechanism.

The third layer, through asset pooling algorithms, dynamic pricing, and liquidity trading algorithms, achieves the pooling, controllable and trusted asset management of green computing power benefit assets, further RWA tokenization. In standard terms, it is an RWA protocol product, and if non-standard, it is a specific RWA investment banking service project.

Building on the foundation of liquidity pools and liquidity trading algorithms, introducing diversified market participants, buyers, sellers, and liquidity providers LP, market makers MM, arbitrage speculators, etc., to construct an integrated RWA trading market that combines decentralized exchanges, liquidity exchange pools, and ATS dark pools.

The fourth layer, based on the green computing power RWA benefit asset, issues equity-based, crypto stock-based, and T-REITs-based RWA products, and in the second layer based on Staking, continues to derive new crypto financial products such as green computing power lending, options futures, insurance, TRS synthetic assets, etc. Most importantly, further support the issuance of green computing power stablecoins and green computing power indexes.

Lastly, at the application layer, users and investors can use green computing power stablecoins and debit cards, hold or trade renewable energy certificates RECs and carbon credit assets, as well as applications such as smart arbitrage of home green computing power.

IV. New Smart Devices for Green Energy Computing Power

The underlying assets of green computing power, green computing power RWA, and the new financial system all rely on the new impossible triangle of "green energy + AI computing power + smart devices," as shown in the diagram:

(Illustration of the Impossible Triangle of "Green Energy + AI Computing Power + Smart Devices")

In this impossible triangle of green computing power, AI computing power means larger scale (centralization) and higher energy consumption (carbon reduction), green energy means greener and lower carbon emissions, and the DePIN smart device means more distributed, small-scale, and even home-distributed.

Here, combining the DePIN distributed protocol and the PoGCS consensus light node smart device will become an intelligent terminal node of the green computing power virtual matrix. It is the core infrastructure of green computing power distributed assets, as well as an intelligent mining machine for green computing power or carbon assets. But in the real world of assets, it is a real light storage and computing smart device. (So, have you considered what your smart device is like?)

Green Computing Power Smart Device. The 2B form may be a distributed green energy smart energy station or an intelligent charging pile with energy storage and computing power, while the 2C form may be a zero-carbon home smart light storage and charging integrated device. Smart hardware refers to mining machines, green energy computing power refers to mining, and 2B smart devices can run or be upgraded to green computing power regional nodes or regional computing power centers, linking distributed home nodes for distributed reasoning rendering or edge computing.

The distributed zero-carbon home light storage charging integrated intelligent device will bear more of the crypto world's social responsibility and grand narrative. In the real world, it involves AI dynamic electricity price arbitrage, home robots, and VR smart device computing centers, while in the crypto world, it encompasses distributed green computing power mining machines, AI Agents, and UBI Universal Basic Income. This smart device can build a "rooftop photovoltaic-energy storage-charging pile-smart computing center-home smart robot-super space entertainment device," under certain conditions, to achieve a fully off-grid green smart computing ecology and zero-carbon home lifestyle. We can envision a futuristic portrayal of home smart robots or embodied intelligent robots. In the future, homes will need a green lifestyle smart computing center: real-time embodied intelligent computing power for home robots, locally rendered game entertainment with elements of dark mythology, predictive management of home green energy and smart home appliances, AI computation for household data, consumption, health, and more.

Summary

The "Green Energy + Computing Power + Smart Device" impossible triangle concept, through the integration of green energy, AI computing power, and distributed smart devices, has built an efficient, low-carbon, sustainable intelligent ecosystem. This ecosystem not only promotes the green transformation of energy and computing but also provides a solid foundation for future smart homes and smart communities. Through sound system design, innovative business models, and effective financing strategies, we can transform this forward-thinking concept into reality, driving the deep integration of green computing power and smart devices, achieving a win-win for economic and environmental benefits.

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This article is contributed content and does not represent the views of BlockBeats.