Bitlumens mission

Bitlumens mission is to provide options to rural communities to displace kerosene, wood or plastic-dependent households and give immediate access to cleaner, safer, and affordable energy in Latin America.

Bitlumens brings electricity from renewable sources using Internet of Things (IoT) and the Blockchain to women in rural villages in Latin America. Thanks to solar energy and our technology, people can use electricity, charge their electrical appliances and even water their crops! Women lease our hardware and pay in installments denominated in BLS tokens. This allows them to build a credit score leading to financial inclusion and poverty alleviation. In addition, family members can buy tokens to send a remittance which could cover the expenses for the machine, meaning water and electricity bills can be covered. We also quantify carbon mitigation and particulate matter reduction in each household to allow women to become carbon credit issuers at a later stage.

The current milestones of Bitlumens are: 

1. The deployment of 100 off grid solar devices by the end of May 2018. 
2. The addition of the software to run the hardware using tokens by the end of May. 
3. The deployment of IoT to track carbon and black carbon mitigation. 
4. After June we will be adding solar pumps into our hardware ecosystem

Mission 

Our mission is to offer a peer to peer platform where users adopt off grid Solar systems to reduce carbon emissions and get access to lighting and water in places where there is no power grid. Our platform allows the leasing of Solar Home Systems (SHS) to be done through installments denominated in Bitlumens Tokens (BLS). Our goal is to create a positive measurable social and environmental impact. We provide solar energy to remote villages and in consequence reduce CO2 and health hazards. We replace the use of kerosene lamps, diesel, plastic, biomass and bio-fuels for lighting and irrigation purposes with solar technologies. This allows farmers to reduce their costs and increase their savings while proliferating financial inclusion and in some cases providing employment. Our digital platform aims at offering distributed, managed by consensus and off grid smart energy solutions in low resource households. Our platform contributes to the UN SDGs, in particular with; Affordable and Clean Energy, Sustainable Cities and Communities, Good Health and Well-being, Gender Equality and Climate Action. Bitlumens GmbH is registered and incorporated in Zug, Switzerland.

Bitlumens electrify rural areas, help bring down CO2 emissions, foster gender equality and promote financial inclusion through its platform.

1.1 billion women remain locked out of the financial system, not least due to the lack of proper identification documents. Identity does not have to remain a barrier for financial inclusion and economic empowerment. In addition, according to the World Energy Outlook, 1.2 billion people don’t have access to electricity while 2.7 billion don’t have access to clean cooking. Only a small portion of rural inhabitants have access to electrification. Most of them depend on ineffcient and hazardous fuels, such as biomass, kerosene, plastic, battery torches and candles. Fuels and its combustion process contribute to the release of greenhouse gases into the atmosphere. Among those fuels, kerosene is a source of CO2 and black carbon. Black carbon or soot, a particulate matter (PM) resides only a few days or weeks until a natural phenomenon called coagulation happens, where cloud droplets and aerosol particles attract each other. This phenomenon helps to clean the atmosphere by flushing out aerosol particles. Hence, replacing all kerosene lamps worldwide with solar lights could serve as short-term action to reduce global warming. A single kerosene lamp emits over 100 kg of CO2 per year when used four hours a day. 

Globally, burning kerosene for lighting generated 240 million tons of CO2 equivalent a year, around 0.5% of global emissions. In fact, just kerosene lamps replaced in Africa and Asia with solar panels saved 1.4 million tons of CO2 equivalent in 2014 alone. Moreover, on a general basis burning 20 kg wood during one day emits about 200 grams of PM2.5, this equals smoking 10,000 cigarettes. 

The energy sector in Latin America and many other developing regions present major challenges to meet energy requirements. In fact, some of these countries rely on fossil fuels to meet energy demand. Price volatility, fossil fuel shortages, governmental regulations on fossil fuel prices, geopolitical settings, power outages and climate change mitigation are major key variables that need to be considered to address energy security. However, the Latin America presents a vast amount of non-conventional-renewable-energy sources such as wind and solar which can be exploited to address power reliability and energy security. 

Table 1 illustrates the megatrends driving the development on solar off grid projects. Large number of people without electricity, increasingly cheaper solar panels, growing mobile phone penetration (SIM cards) and high energy spending on ineffcient fuel sources are some of the variables we take into account to model off grid energy solutions. In addition, we focus on the intersection of high cell phone availability, low rate of electrification, high number of adults unbanked and high adoption rate of kerosene or other ineffcient fuels used for cooking or electricity.

Combining clean tech, fintech, the blockchain and cloud computing, Bitlumens offers a software as a service (SaaS) where women living in rural villages and in need of power can get access to Sun Home Systems (SHS).

In many developing countries kerosene (paraffn) is widely used as fuel for light and cooking. The use of kerosene as lighting fuel is an important source of black carbon (BC) and carbon dioxide. Especially in rural areas where most families use dim kerosene lamps to light their homes at night. The combustion originated from burning fuel indoors pollutes the air with harmful particles, which can irritate the eyes and lungs, and can also cause accidents. According to different studies 3.5 million premature deaths occur each year are linked to smoky indoor environments. Off grid energy services supplied from renewable sources can not only displace kerosene usage with effcient Light Emitting Diodes (LEDs), but also reduce the dangerous side effects produced by combustion. Other sources of fuel are pine kindling, used in Latin America as a source of light. Like kerosene, pine kindling often causes health issues, such as long-term neurological and kidney damage. 

Kerosene and biomass powered wick lamps are far less effcient than solar powered LED lanterns. As stated by kerosene is a dangerous and ineffcient fuel used in wick lamps which provides less useful light compared to solar lanterns. Kerosene wick lamps provide 1 to 6 lumens per square meter. LED has higher effciency - measured in lumens per watts- quality and quantity of lighting when compared to kerosene lamps. The use of LED lanterns entails reductions on greenhouse emissions and operating costs. A kerosene lamp producing 37 lumens during a period of four hours per day will consume about three liters of kerosene per month at an average cost of USD 0.35 per liter in India. 

Most off-grid customers live in rural areas and on less than $2 a day. Therefore, energy accounts for a significant amount of their spending. However, distributed energy companies (DESCO) are bringing new forms of financing to the homes of people living in rural areas. 

By generating renewable power from the sun, DESCO aim at offering reliable energy services and reducing greenhouse gas emissions in a cost competitive manner. Some of these companies use “pay as you go systems” to provide access to credit for people who do not have access to cash. This solution is a leasing, providing the choice to own the technology once all installments had been paid. Bitlumens provides a solution to support villagers gaining access to IDs, micro-credits, electricity by using solar panels and the blockchain. Combining clean tech, fintech, the blockchain and cloud computing, Bitlumens offers a software as a service (SaaS) where women living in rural villages and in need of power can get access to Sun Home Systems (SHS). The latter are user-friendly, eco-friendly, and smart internet of things (IoT) devices that bring power to the unbanked in places without power grid. In short, our platform gives options to rural communities to displace kerosene, wood or plastic-dependent households and give immediate access to cleaner, safer, and affordable energy in Latin America.

We focus on the intersection of high cell phone availability, low rate of electrification, high number of adults unbanked, countries with inflation rates below 10% and high adoption rate of kerosene or other inefficient fuels used for electricity. 

The Solar System 

Ideally, our Solar Kit will initially use a 15/20/50W solar panel and 3000 mAh, Lithium Ferro-Phosphate (LFP) Battery. We will sell 3 systems coming with different appliances, i.e. two USB charging ports; integrated dimmable LED lights; LED Backlit LCD TV; Radio and TV. 

The battery should last for 5 years and the system has a 2 years warranty minimum. 

The system must provide to the final user: available credit, battery availability, electricity consumed, lighting duration, daily cost and energy output. The data will be sent to the network on a daily basis between 7-10pm.

The solar kit is connected to a smart meter and to the user’s cell phone. We use programmable logic controllers (PLC) that allow the current to be measured. There are several circuits which can be used to determine the voltage and current generation/consumption. Each sensor must be connected to a analog-to-digital converter (ADC) in the Controller Hardware. We’ll need at least one circuit at the Solar Panel input and another at the battery output. With these values it calculates the power produced and consumed. The smart meter works LPWAN solutions for IoT, which can work for several kilometers distance. Sensors will provide the data in the form of text messages, such as, available credit, battery availability, electricity consumed, lighting duration, daily cost and energy output.

We use a combination of on and off chain data sources to calculate the credit score of women farmers

Off Chain: The digital IDs are not part of the blockchain but are going to be centralized. Each user will be able to have their own ID and credit history. This information can be shared to third parties who offer microlending solutions, governments and development banks. Users can get access to microcredits by paying a specific interest rate based on personal and behavioral variables. 

On chain: The idea is that our investors know when the transactions by our users are done. After the transaction is entered in the system by our agents, Bitlumens will pay these agents a commission denominated in tokens. 

To be able to provide financial inclusion two important pieces of information are provided, IDs and KYC (Know Your Customer) information. Bitlumens gives access to a platform that connects microcredit solutions to users who are not powered to the grid, offering SHS. We will provide cooperative banks with key pieces of information they require to open an account or facilitate financial services given the proof of valid microcredit. Each user will be able to have their own ID and credit history. This information can be shared to third parties who offer microlending solutions, governments and development banks. Users can get access to microcredits by paying a specific interest rate based on personal and behavioral variables. 

The system will be comprised (at minimum) of the following components: 

1.  A token creation smart contract (Ethereum) 
2.  A utility billing system contract (Ethereum) 
3.  IPFS (hash-based decentralized file storage) 
4.  A centralized server to hold fingerprint data and notarize identity requests (approve/refuse) 

Bitlumens team will own the private key to add and remove agents. Agents have the power to add utility bills for clients. The workflow is the following: the agent goes to the client’s home, collects the money and buys a token in the OTC market for the client to use (so she can use the hardware). In addition, agents get a commission in tokens as explained in the following graph:

Then, the agent makes a blockchain transaction that contains the utility bill data of the client. The agent uploads the detailed information to IPFS. We use IPFS files to store the information on the file itself. More specifically, the transaction contains the following information: the token value information, potentially some of the energy consumption (but only a few, as storage on Ethereum is very costly) and a IPFS hash to the file containing the detailed energy consumption. Each client is assigned a user number, which identifies them uniquely. For KYC purposes, it suffces for the bank to ask a server (iv) that their client’s number matches the correct fingerprint. Once they can trust the user number, they can look at the blockchain (ii) smart contract to estimate the credit rating of the client and participate on a microcredit. It is also possible to add a credit rating functionality, where a credit rating agency would associate client numbers with credit rating, thereby making the process easier for banks. 

The area manager, the agent and the investor interact through our web and mobile app. On and off chain data communicates using oracles. The tokens can be exchanged on a public blockchain through Ethereum. An additional layer of smart contracts is added to execute instructions based on predefined conditions.

Women farmers are the owners of their own data. Sensors collect data to verify carbon and black carbon mitigation.

Our clients own their own data. These data can be sold to the government or to development banks. The data runs in a private blockchain and is connected to our sensors. 

Operation in a Village and Identity of Villagers

Each machine has a serial number and can be linked to a user which is identified using their fingerprint. We will work with a partner provider for the ID and fingerprint. The MVP aims to support usage of Ether and is built on the Ethereum network, as it is currently the most mature blockchain to implement smart contracts. 

The following graph shows the flow of BLS tokens needed for women farmers to run their machines. These women buy tokens to run their machines which are used to produce power for electricity or water

Our mission is to include women living in rural villages into the financial system by providing microcredit and pay as you go solutions. Therefore, Bitlumens aims at licensing the platform and operate with cooperative banking services in a global scale to improve the lives of villagers while contributing to carbon mitigation strategies related to the Paris Climate Agreement of December 2015. 

In addition, family members can buy BLS tokens through our app and send a remittance to one of our final users (leasing party) destined to pay for water and electricity bills.

Use Cases 

License the Software to a Microlending Entity 

Bitlumens software can be licensed to banks (SaaS) in exchange for fees or revenue share. Bitlumens helps the Cooperative Credit Banks originate new sustainable loans, then it syndicates or sells these loans to 3rd party investors where each microcredit has a piece of hardware as collateral. This process allows for the legal creation of the loan and transfer of funds to the borrowers based on an existing banking license. On the payment side, the depository is a collaborating Cooperative Credit Bank and all members who borrow on the platform will be onboarded as a bank member with full AML/KYC and associated accounts. 

Before originating a loan, agents will perform the due diligence on each interested villager, including behavioral variables. The platform will evaluate credit metrics and derive a credit score based on the collected information and on the regulatory framework adopted in each country. 

Allow Certified Emission Reduction (CER) and Verification

Bitlumens measures emission reductions and allow green project verifiers to certify these reductions

Bitlumens fulfills the requirements based on the clean development mechanism (CDM) under the article 12 in Kyoto’s protocol and earn sealable certified emission reduction (CER) credits. The emission reductions occur when villagers don’t use biomass or kerosene as lighting source. This information is included in the measurement, verification and reporting (MVR) framework under the Paris Agreement. The methodology for measurement is taken from the intergovernmental panel on climate change (IPCC). Reporting is done through the actions taken to mitigate GHG and on adaptability measures that are considered relevant to the achievement of the climate change objectives. In addition, data verification is done through national MRV and through ICA. The idea is to license the platform to governments to visualize the emission reductions in different areas of the country based on sensors, IoT and the blockchain. This will allow clear auditability and the possibility to enter into Carbon Credit markets. 

It is well known deforestation is an issue in Central America, for this reason we include sensors that measure PM2.5 and allow the verification that wood and kerosene is displaced as lighting source. In addition, we use satellite imagery to capture the reduction of deforestation in the surroundings of the villages where we operate. We use 4-band (RGB and NIR) imagery for visual or analytic use.

Women farmers can run the SHS using BLS tokens 

Information of all Bitlumens devices such as serial number and location will be stored in the blockchainBitlumens is partnering with a third-party provider for biometric solutions and to run the project in the field. In Guatemala, we are partnering with Amigos de la Aldea and with Brightlight Foundation. 

Example of a typical transaction: To assess the risk of each household, our agents collect KYC information from each farmer and feed the risk model with that data. The agents distribute and install the machines at the client’s house. The machines are leased for a period a period of 12 to 24 months. The client makes the lease payments in BLS tokens. If needed, the client can purchase the BLS tokens for the lease payment from the agent. If lease payments are not made when due the machine is locked until the payment is made. If users receive remittances from family members to cover a lease payment, Bitlumens charges a 1% transaction free. 

Bitlumens registers the load profile of each machine that is in use. Token holders can monitor these profiles on the blockchain. Thus, they can see the evolution of the project and its environmental and social benefits. 

We expect to have one project manager per 100 users, installing between 60-100 systems each month.

Customer defaults rates are expected to vary in each region, but for simplicity reasons our model takes 10% average rate. We choose women as final customers as data shows they are more reliable than men when it comes to payments. However, these cases need to be assessed regularly. Our model quantifies defaults over time. In case of default, the agent working in the field will collect the system back and then sell it second hand. 

Our system gives the option to add a digital ID for each user, collecting credit data, creating credit scores and giving access to financial services at a later stage. 

When it comes to the collection of IDs we plan to partner with companies who are already working with blockchain infrastructures. In India, for instance, the Aadhaar system is now accessible to more than 1.1 billion people. Users can open accounts by presenting the Aadhaar numbers. We plan to deploy a similar scheme in Latin America, where agents collect the fingerprints of our users and save

these in centralized servers supporting encryption. In addition, agents will upload the KYC, load profile while the system will calculate the credit score based on the user’s credit history. We expect to have one project manager per 100 users, installing between 60-100 systems each month. Microlending institutions are providing technical assistance while working closely with their women’s project. Hence, our goal is to train women and make them part of our team as agents. Their wages will depend on the region and are based on commissions. During the third trimester, we expect to have a regional manager to support us on scaling the project in the country.

 The following table shows the breakdown of how we expect to invest the funds over a period of 3 years:

We started the development of an API. Our web api will communicate with oraclize. Communications between Pay as you go systems front-end dashboard, loggers, and mobile app and Bitlumens back-end’s HTTPS server are via RestAPI/JSON. Bitlumens back-end system uses a PostgresSQL database to store the actual data points and IDs. It runs a full ethereum node, and is used for data retrieval and analysis. In addition, we will use Solc compiler, IBM Hyperledger, Ethereum, Java, HTML, IPFS, Native iOS/Android, PHP, Node, Golang and Haskell. 

The role of the blockchain within Bitlumens operation is to record each user’s KYC information and the already predefined smart contract to preserve verifiable records of the contract’s conditions during each installment. In addition, we plan to move into microgrids once we had collected data on how much users pay per month, their load profile or electricity consumption and what is the power generation from each device. We aim to reduce the costs of utility companies who cant build hundreds of kilometers of power line to transmit and distribute energy. Decentralized energy systems give the option to rural communities to get electrified while reducing their carbon footprint. 

On Bitlumens, the only state update that can be settled on the blockchain is that of a transfer of tokens. The platform allows for fiat payments in exchange of tokens. The storage and verification of data are placed on a private chain where only investors can access. However, women are the sole owners of their data and Bitlumens can only access it to optimize our processes. Bitlumens can’t sell the data owned by farmers. 

We expect to have the smart meter ready in the second trimester as we plan to create a peer to peer 

network for power exchange without the need of having a power grid. The smart meter will inform the user how much power has been produced, consumed and stored into the battery which can be traded in exchange for tokens. In addition, during the second trimester of 2018 sensors will be added to the solar home system to allow verification of carbon mitigation. 

Bitlumens will be working with a solar manufacturer (Greenlight) who had shipped 100 units together with the pay as you go system within a two-week period. These machines are already in Guatemala. In addition, Bitlumens had already started a pilot project in Guatemala.  

Roadmap 

Currently, Bitlumens follows these milestones in Latin America: 

1.  The deployment of 100 off grid solar devices by the end of May 2018 in Guatemala. We are already training the agents who are the distributors of the off grid solar devices. 
2. Adding the software to run the hardware using BLS tokens by the end of May. 
3. The deployment of IoT to track carbon and black carbon mitigation. 
4. After June we will be adding solar pumps into operational locations

Token Specification and ICO rules 

Our token is an ERC20 utility token, and aims to provide social and environmental transformation, where all proceeds will support the development of the software and MVPs currently placed in Guatemala. Bitlumens token can also be seen as a loyalty token allowing investors to show their affiliation with and support of the projetc. it does not represent equity.

 

The utility tokens are initially distributed in a presale (pre ICO) which starts on May 29 and lasts until June 18 at midnight CET. A maximum of 10 million BLS tokens are offered during the 72 hour pre ICO at a price of 2 BLS /USD. Only payments in ETH and fiat currencies are accepted. Bitlumens assists parties preferring to participate in the pre ICO in fiat currency. If all 10 million BLS were sold in the pre ICO, USD 2.5 million would be raised. Tokens that were not allocated in the pre ICO will be added to the ICO pool. 

The duration of the ICO is 28 days. It starts on June 19 at midnight CET and is divided into 4 periods (see Table 5). On the first day of the ICO BLS tokens are offered at a price of 1.5 BLS /USD. Between the 2nd and the 7th day, the price is 1.4 BLS/USD and between the 8th and the 14th day the price increases to 1.3 BLS /USD. Finally, during the last 14 days of the ICO the price is 1.2 BLS/USD.

The ICO will terminate early, if an equivalent USD 25 million have been raised. This amount corresponds to the projected funding and investment needs for a period of 3 years. 

The total supply of tokens is capped to 50,000,000, with the smallest available denomination being 0.0001. The detailed allocation of BLS among the various stakeholders is shown in Table 6. 25% of the tokens will be initially held by Bitlumens in order to provide liquidity to the secondary market.

KYC/AML 

All participants in the ICO phase will have to meet KYC standards that are in line with best industry practice in Switzerland. Bitlumens will also perform an AML/CFT risk assessment.

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