Can Renewable Energy Secure the Next Layer 1? The Solarious Thesis

Hey there folks and welcome welcome. First of September, happy Tuesday to everybody tuning in live and and grateful to have everybody tuning in into the recording. I'm Michael Graham and I'm your guide and host as we go on cryptic talks, talking to founders, builders and projects really building the future of the Web 3 space. For those listening in it would be great if you could maybe give an emoji in the in the comments just if you can hear okay and if the sound is coming through fine, maybe a fire, maybe a rocket, maybe a fist. But today's conversation is going to be a really really exciting one. We're going to be talking about from solar power to on chain value inside Solarius with founder Jack Sanato. Jack, it's great to have you with us my friends. Great to be here Michael, thank you for inviting me. Yeah, my pleasure, my pleasure. I'm really looking forward to this conversation. For those of you who don't know, stay tuned for this as well. We recently had an amazing podcast conversation with Jack where we were really diving into Solarius. We're going to be hanging out on this AMA for about 30 minutes, 40 minutes. So if you've got some questions about how solar energy gets involved with blockchain, that's really what we're going to be talking about. And really the concept really is thinking how does solar energy come on chain, right? So Jack, I mean, listen for those tuning in live and maybe for those who don't know much about you and Solarius, maybe give us a one minute intro in terms of you and Solarius. And then let's dive into the conversation today. Okay, great, thank you for this opportunity Michael. My name is Jack Sanatov. I'm an engineer, inventor and entrepreneur. I got multiple patents on my name. And this is my third company that I'm that I'm building. I believe that engineering and technology is meant to solve problems and supposed to everything that we engineers do supposed to do supposed to be built toward doing something good. And everything that I've done before or built before always was trying was intended to solve some fundamental problems that I recognize as it has been roadblocks for the evolution and for the progress. And here too, this one is a very like a passionate project of mine, Solarius. This is for supporting the renewable energy and carbon credits problems in the world that friction with the carbon credits and renewable energy issuance and supporting renewable energy production incentivizing renewable energy production. So build a renewable energy monetization platform that unlocks more value from producing solar energy for regular households with the solar panels on their rooftops. The as we all know, crypto industry, experiencing shift. And this is a good shift. It's shifting is maturing is becoming more, more focused on real world solutions. That's why you see the big rise on our RWA platforms and our WA marketplaces. And you see the market volatility. All that is indication of the industry's going through a growing like a maturing shift. And as a result, more focus, more investment, more funds and more communities for that matter, evolving around technology that bring real value. And that also changes improves the perception that crypto industry had with the regular public, the average public. So the Solaris project solves that in multiple ways. Yeah. Now I'm really excited. Jack spoke about spoke to you about this. I know we had a few conversations in the background preparing this conversation as well. And folks tuning in live, if you've got a question that maybe you'd like to ask, share your questions in the comments, we may be pick out a couple of questions towards the end of the conversation. But Jack, you're someone who, you know, you've built across software, you've built startups, you've built technology operations, you know, for many years. I guess what did that experience teach you that most crypto native founders may underestimate? Most crypto native founders mainly, at least in the crypto industry, specifically, focused on something that very close to their environment, solutions by crypto industry providers, solutions towards or for crypto enthusiasts. They are forgetting about the bigger world outside. They're neglecting the people outside of the networks, outside of the chains that they belong to and they're looking to solve some things within the blockchain and within the network itself. And that's supposed to change. And that's what the market's already dictating and actually demanding from us. Yeah. Yeah. No, it's true, right? Jack, I think one thing you mentioned previously is you were talking about RWA's. I saw an amazing stat today, actually, how RWA's in the last month or so, like two, three months has grown up by more like the industry size has grown over like 400%. Right? So there's clearly a huge demand. The evolution of the space is happening 100%. I guess, look, let's, let's make it simple. You know, you guys are building with them solar energy. You're bringing solar energy on chain. What is broken in the current relationship between renewable energy, environmental assets and blockchain? That's a great question. So this is a growing and existing, existing problem in general. Like there is there like as you mentioned, RWA growing in those huge numbers is one of the touching points where blockchain gets out of the chain and actually touches the real world is the real RWA, right? Like real world assets. It's on the knee. In the same way, in the same way, the same technology can solve many problems that we have. And carbon credits and renewable energy certificates always being isolated. And there has always been a huge friction. You might know or you might, you yourself might produce solar energy on your rooftop. You might know people who are doing solar farms. But most of this like and nobody, none of them will tell you any platform or infrastructure that they can use from producing from collecting and selling their environmental commodities and monetizing their environmental commodities. There are brokers, there are isolated, siloed solutions and there are lots of them being watched. International carbon action partnership, ICT, shows that close to 80 billion in 2025, of renewable energy certificates being issued along with carbon credits. One third of that being renewable energy certificates. The same research shows that close to 1.6 billion dollar worth of renewable energy certificates never even claimed. And if you talk to some folks about environmental commodities, most of the people heard about carbon credits, but very rarely you hear that someone who knows about renewable energy certificates even though it's a 30 billion dollar market. Reason being, reason being is the missing technology, missing solution that collects real life information about the real energy production from a renewable energy source. Carbon credits are issued on speculation. You can plan trees, clear the oceans or put up a solar panel on your rooftop in prune that you have installed on solar panels, you have cleaned the oceans, then the carbon credits, issuers will issue the carbon credits that might come to you or might come to your broker and essentially sold to the corporations who are trying to offset their carbon footprint. However, if you sold a pile of stuff working or trees burn down, that's a bit. There is no way for issuers to know about. They're going to continue issuing carbon credits that also reducing the credibility of carbon credits. However, renewable energy certificates only based on a real life data collected in verify and now you can imagine how hard it is to do across around the world, around different jurisdictions, different networks, internet, etc. Washington conducted the research in 2023 and concluded there is a lab in Washington, government funded lab in Washington actually concluded that blockchain is the solution for renewable energy certificates because that's decentralized. It has no jurisdiction, it has no limitation. Per provider, that's the only way to solve the renewable energy certificates so they can be issued on chain, I mean issued on in real time and invalidate. So we have introduced proof of energy, blockchain protocol that literally as on the name, energy is produced and proven on the network on chain, which helps to significantly improve the data collection for formatting the data and issuing the renewable energy certificates in a decentralized way. So that solution never existed before. Yeah, it's wild Jack, right? Some of the numbers you're pulling out there with the proof of energy, PDFs, the proof of energy certificates, like the fact that that industry is one, isn't very known to the fact that that industry, the only solution really is blockchain, and we're seeing that across so many spaces in the RWA, we're going to talk a little bit about what you guys are building within Solaris and you're sharing some real alpha on this session right now. So thank you for that. I guess maybe before we start talking about what you guys are building and what's in the roadmap and what are the opportunities with Solaris for people tuning in live and for people listening to the recording, I know you guys at Solaris you use the term proof of energy, right? What does it mean in practical terms? In practical terms, it's mining protocol, crypto mining protocol. We are introducing a new form of crypto mining protocol. It's actually a next generation of crypto mining operations in general. If you look at the history of crypto mining, first popular crypto mining protocol was a proof of work. Proof of work consumes too much energy. As the network became the chain became stronger algorithms requiring more energy to be consumed to mean the block. You know what's happening with the blockchain, the mining farms, there are smaller producers or smaller miners cannot earn anything. Mining farms sucking out all of the blocks. There is no competition, no more. But it started differently as the network grew. It landed in a position where governments shutting down mining farms because of the energy being consumed so much. As a solution to that, the proof of seeking protocol was introduced. It was invented in 2012. And after a few years Ethereum picked it up and started using it on scale. But proof of thinking uses capital, it locks capital. Also neglecting the small or middle producers or small or middle players that cannot earn enough. Only the ones with big capital can earn. Both of them have a very good technology. Both of them are very good solutions. And one is the improvement to the other. Where is the proof of energy combines both of those solutions, the good size of those both of the solutions and improves it to the next level, the next step. So if the proof of work was consuming energy and proof of taking was introduced to help with consumption of energy, proof of energy now rewards for producing renewable energy. So it turns it on its head. And the functionality is same, the result is same. And it uses both of those protocols, power points, say proof of staking requires validators, nodes. Proof of work requires producer nodes. In a proof of energy blockchain, there is a producer and validator. As a result, the solar energy being produced validated or actually read off and packaged and signed off by producers where the validators validating that entry point. And when they're combined, they're combined in a middle and validate each other, only then a block is minted, which solves the fundamental real world problem of the renewable energy certificates and carbon credits because it's being...