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BusinessJune 12, 2018

The Kiwi behind the ‘cheaper, faster, more eco-friendly’ alternative to Bitcoin

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Every week on The Primer we ask a local business or product to introduce themselves in eight simple takes. This week we talk to Craig MacGregor, one of the founding developers of NavCoin, an alternative cryptocurrency that’s gaining steam around the world. 

ONE: How did NavCoin start and what was the inspiration behind it?

NavCoin first launched back in 2014. It was started as a community-driven initiative to create a cheaper, faster and more eco-friendly alternative digital currency to Bitcoin. At the time we were also concerned by the trend in cryptocurrencies towards centrally managed platforms. We wanted to create a cryptocurrency that came back to the idea that privacy, autonomy and participation in the project were core fundamentals which make blockchain such a powerful force.

TWO: Did you have any interest/experience in business or entrepreneurship prior to starting NavCoin?

Prior to working on NavCoin I’d been a web developer for a number of years. It was always in the back of my mind during the formative years of my career that I would use that experience to one day build my own business.

NavCoin is not a business though, it’s a free and open source protocol that’s publicly owned and governed by a decentralised network, which is a bit of a confusing concept at a glance. My company Encrypt S was formed well after NavCoin launched. In essence, we’re a self-funded blockchain research and development lab. Encrypt S sponsors contributors to the NavCoin protocol and other open source blockchain projects.

NavCoin engineer Craig MacGregor (far left) stands for a photo with his Encrypt-S Team (Photo: Supplied)

THREE: What makes NavCoin different from other cryptocurrencies out there? Why should people choose NavCoin instead of Bitcoin?

NavCoin is cheaper, faster and more eco-friendly than Bitcoin. NavCoin uses a different way of validating transactions called ‘Proof of Stake’ which uses far less electricity. The entire NavCoin network consumes only around $10,000 of electricity per year, which is in staggering contrast to the $3.5 billion cost to run the Bitcoin network.

Better technicals is only part of the equation, we also understand that cryptocurrencies are complicated and often hard to use. We’re striving to make software that’s user-friendly and simple enough that anyone can get the benefits of using a decentralised digital currency, without needing to be highly technical.

FOUR: What is the value of NavCoin right now and what kind of scale are you operating with at the moment?

The total market capitalisation of NavCoin is around $60 million USD. It’s hard to calculate the exact number of users in a decentralised network but there are 23,594 NavCoin addresses on the NavCoin blockchain right now.

In the community, there are at least five active groups of developers working on the NavCoin protocol and software which runs on top of the protocol. The wider community consists of around 100,000 people spread over the main social platforms like Twitter, Facebook and Reddit as well as chat channels like Discord and Telegram. It’s a very engaged community with a wide diversity of active participants from all around the world.

NavCoin’s trajectory from June 2014 to June 2018 as of 8 June 2018 (Screenshot: coinmarketcap.com)

FIVE: A lot of cryptos have gone about doing ICOs (Initial Coin Offerings), but the team behind NavCoin hasn’t. What’s your reasoning behind this?

Not running an ICO puts NavCoin in a special class of cryptocurrencies (alongside Bitcoin) that are truly publicly owned and has no central point of authority. The value proposition of decentralised ownership and responsibility is a fundamental property of blockchain, which we felt was best preserved by launching the project without raising capital. It allows anyone to be a meaningful contributor to the project and also means that people who contribute come from the community and are acting in the best interest of the network.

SIX: NavCoin has quite a sizeable following now, but it seems like it’s kind of flying under the radar here in New Zealand, despite having a New Zealander operating behind it. Why do you think that is? Do you think New Zealanders just aren’t as interested in or as clued up about crypto as other parts of the world?

I was one of four people involved in the early days of NavCoin’s development and we collaborated on the project online from various corners of the world. Currently, I’m the only one of the original developers who still contributes to the NavCoin project despite having more developers contributing to the platform than ever before. It’s only been over the last nine months or so that I’ve been in a position to sponsor more people in New Zealand to contribute to NavCoin with me, which is why it’s been relatively under the radar here. We’re just starting to pick up steam locally despite having active users all over the planet.

I’d say that one of the biggest drivers toward cryptocurrency adoption globally has been economic instability, something which we’ve seen happen here at a relatively slower rate than other countries. Perhaps this has made cryptocurrency adoption less urgent for your average Kiwi. But there’s a growing interest in New Zealand lately which seems to be driven by an interest in innovation and technology rather than by necessity. The blockchain and cryptocurrency sector is fast arriving at the point where it’s mature enough for businesses to seriously look at adopting it as part of their business model.

SEVEN: Do you have any other plans to scale/grow further and if so, what are they?

At Encrypt S, we’re big proponents of NavCoin and we’ll continue to work towards making innovative protocol improvements, as well as creating software and services to make NavCoin easier to use for both businesses and individuals.

We’re currently working on a new multi-currency wallet called Kauri which will allow people to easily store and trade NavCoin and other cryptocurrencies on any device. We’re also working on a blockchain application platform called Valence which is a new approach to building decentralised blockchain applications that can do more than just transmit money. Valence is working towards making it easy for businesses to identify where they could benefit from blockchain technology and applying it in meaningful ways to those specific areas.

EIGHT: Lastly, tell us about a start-up or business that you really admire right now.

Elon Musk’s businesses like Tesla and Space X are a big inspiration for me personally. Seeing someone who’s unafraid to have extremely ambitious aspirations backed up by the drive and technical capability to turn his vision into reality is awe inspiring. I also secretly love the fact that Elon is really just a big nerd at heart. He’s a hugely successful entrepreneur, but he can still hold down a conversation about rocket science without even breaking a sweat.


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Members of Generation Zero outside parliament (Photo: Supplied)
Members of Generation Zero outside parliament (Photo: Supplied)

BusinessJune 11, 2018

We’re an electricity retailer, and we’re backing the Carbon Zero Act

Members of Generation Zero outside parliament (Photo: Supplied)
Members of Generation Zero outside parliament (Photo: Supplied)

Within the next decade New Zealand will achieve at least 90% renewable energy. So we have nothing to fear from the Zero Carbon Act other than opportunity, argues Meridian Energy CEO Neal Barclay.

While New Zealand remains small in global terms we can’t underestimate how powerful it is to work as individuals, organisations and as a society to be part of the solution and act on climate change.

As a nation we’ve never been shy about taking a leadership position on key issues of the time, from leading the charge on votes for women and going nuclear free, so moving our nation to zero carbon seems eminently possible.

That’s why Meridian Energy is one of many businesses supporting a Zero Carbon Act. Showing our support means we believe we can and must act on the opportunity to create a prosperous future for our customers, communities, our country, and the planet.

The act, which includes establishing a Climate Commission (and the subsequent targets that will be put in place), needs to chart what we all must achieve to be carbon neutral by 2050. This framework, if managed well, will support research and development and allow for competition of ideas and innovative solutions that are cost-effective, and will deliver a sustainable future for everyone.  

It’s an exciting time to be a leader in the electricity industry and there’s much that we can do. At Meridian, a key part of our role is to grow the proportion of renewable energy in our electricity system, and encourage the use of that clean energy to decarbonise the wider economy. Our sector can show how renewable energy can help all our customers play their part in a clean energy future, and radically transform other sectors, particularly transport and industrial heat processes.

The combination of the foresight of those who have gone before us, the huge renewable resources available to us, and the skill and commitment of the women and men working in the industry today, means the New Zealand electricity market is recognised as a world-leading success story. It delivers a secure and reliable supply of electricity from generation that is powered by around 85% renewable (mainly hydro, wind and geothermal).

We also have many of the key ingredients to work towards a zero-carbon future: a mature wholesale market that enables new renewable technologies without government subsidies, a regulatory framework that aims to encourage competition, a huge number of retail brands (40) for consumers to choose from, and good investment signals that tell us when the time is right to introduce new generation.

Over the last decade the make-up of New Zealand’s electricity generation has been built on a base of hydro-electricity (MBIE says 56% on average over a decade). As new technology costs have decreased, particularly wind technology, more renewable generation has been built and ageing fossil fuel-powered (thermal) plant retired. We’ve gone from 65% renewables to 85% renewables in just a decade, without missing a beat.

In fact, we project the current market will increase renewable energy into the mid-90%s within the next decade. This is possible because hydro, our ‘super’ renewable foundation, ramps up and down swiftly and seamlessly to enable our system to accommodate large amounts of ‘intermittent’ renewables that, for example, only generate when the wind blows or the sun shines. This flexible hydro base has been, and will continue to be, essential to the future pathway we forge as we integrate more renewable energy and new technology into our system.

It’s not a perfect story, of course – a hydro dam in a river system does impact the river ecosystem – and that impact needs to be mitigated. So there are few, if any, large hydro scheme opportunities left in New Zealand. Our market still requires some back up from thermal sources to make up for the shortfall in years when the lakes are low from lack of rain, so for the foreseeable future, some thermal will be needed to cover those dry years. Looking at this in terms of the broad opportunity for a cleaner energy future though, this is a very minor impact that can be managed.

Working together on the transition

I believe it’s important to build on all the advantages we currently have, and to move on the opportunities that have the broadest impact on our carbon neutral goal, to reduce our impact on the climate. Being aware of the impact of our actions across sectors, and how it affects New Zealanders, is essential to our collective success.

Companies like Meridian are actively looking for innovative solutions. We do expect to build more wind and solar capacity and believe the technological advances in the coming decades will help keep electricity affordable for New Zealanders.

We agree with the Productivity Commission that we need to be wary of changes in the electricity sector that have the unintended impact of driving price increases, slowing down the electrification of transport and the transformation of thermal-powered industrial plant in this country.

The issue of affordability is deeply personal to many households and important to our economy. We know electricity generators, distributors and retailers have a part to play in enabling Kiwis to keep their homes warm without breaking the bank. Pricing reform in the transmission and distribution sectors is needed to ensure that the costs of maintaining our lines networks are not unfairly loaded onto those least able to afford it.

Creating a healthy housing stock will be imperative to our long-term prosperity. The knock-on positive benefits of better quality housing are key to a healthier future that will reduce the costs in other sectors, particularly health, also means more efficient use of electricity for all.

In the future we will see New Zealanders being provided with the right incentives to better insulate their homes (and rental properties) and heat them more efficiently, as well as access to new technology that will further improve all our lifestyles.

We will see technology costs come down, such that solar solutions and batteries better support customers to supplement their energy use, and large commercials will lead the way integrating new technology.

Transportation and the way we think about getting around will undergo a revolution. Electric vehicles will rapidly become more accessible, in terms of price and range and charging infrastructure providing us with a cleaner and healthier transport sector.

Agriculture will continue to innovate to thrive and we expect to see high-value opportunities emerging in the form of low carbon footprint products, advanced farming practices and a focus on regenerating the land, improving water quality and an increase in forestry programmes. As a retailer to a large farming customer base, we see a real willingness from the farming sector to evolve and innovate to meet the future climate challenges.

Incentives to live with a smaller footprint overall will be many and varied and will flow through to the individual consumer.  And with the support of a framework proposed by a Zero Carbon Act, we believe we can make this transition to a zero-carbon future that sees equity for all, with no one left behind.  

To me it is critical the act, and the regulatory frameworks that support its objectives, need to provide clear targets so that businesses and individuals can invest with confidence. They also need to allow competition and innovation to flourish, which will ultimately find the most efficient solutions for New Zealand.

Looking at these broad opportunities, companies like Meridian have huge scope to make a difference. We are conscious of the responsibility we have and believe that a Zero Carbon Act is a key tool in providing a framework to take us all forward. We’ve got the Kiwi ingenuity to solve the problems, and the skills to test solutions and collaborate. The time to lead is now.


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