Alan Orwick on Energy-Tied Stablecoins, Proof-of-Work Blockchains, and the Future of Crypto | Ep.389

In an exclusive interview with Cryptonews.com, Alan Orwick, co-founder of Quai Network, shared his thoughts on the evolving role of blockchain in global commerce, the intersection of energy and crypto, and why Proof-of-Work (PoW) is at the heart of Quai’s design. From developing a new kind of stablecoin to navigating the challenges of building a Layer 1 blockchain, Orwick discussed the innovations driving Quai’s vision for the future.

Crypto’s Role in Politics: A Growing Force

As blockchain adoption grows, so does its influence in mainstream politics. According to Orwick, this year’s U.S. presidential election showcased crypto’s emergence as a key political issue.

“The stakes were high, and crypto was a defining feature for both sides,” Orwick noted.

“The right embraced it with initiatives like launching DeFi platforms and proposing a Bitcoin strategic reserve, while the left’s lack of clear messaging hurt their credibility with the crypto community.”

Orwick emphasized the growing power of crypto voters, describing them as a decisive factor in shaping policy discussions on innovation and regulation.

The Unique Vision of Quai Network

At its core, Quai Network is a scalable and programmable PoW Layer 1 blockchain designed to meet the demands of global commerce. Unlike traditional blockchain platforms, Quai introduces an energy-tied stablecoin model that directly links token value to real-world energy costs and demand.

“We use PoW miners as decentralized oracles,” Orwick explained.

“As hash rate increases, token emissions rise, and as it decreases, emissions fall. This dynamic creates a real-world link between token supply and energy demand, offering a novel approach to long-term stability.”

By integrating energy economics into blockchain, Quai offers a decentralized alternative to traditional stablecoins, which rely heavily on centralized financial institutions and are vulnerable to systemic risks.

Alan Orwick on Proof-of-Work Over Proof-of-Stake

While Proof-of-Stake (PoS) has become a popular choice for blockchain projects, Quai chose to stick with PoW. For Orwick, the decision was about aligning with long-term decentralization goals and creating a blockchain system that is both robust and innovative.

“Bitcoin remains the gold standard of decentralization, thanks to PoW,” he said.

“While PoS might have been easier and faster to implement, PoW allows us to build a fundamentally different system that prioritizes decentralization and energy integration.”

This decision also enables Quai to develop its technology stack from the ground up, ensuring complete ownership and control over its ecosystem.

Redefining Stablecoins with the Energy Dollar

One of Quai’s most innovative features is its energy-tied stablecoin, a concept designed to address the limitations of traditional stablecoins like USDC and USDT. Unlike fiat-backed stablecoins, which can depeg during financial crises, Quai’s energy dollar derives stability from its connection to global energy inputs.

“Energy powers everything—our lights, cars, and even economies,” Orwick said.

“By tying a stablecoin to energy rather than fiat, we create a decentralized system that isn’t vulnerable to traditional finance’s bottlenecks.”

While the energy dollar is not pegged to the U.S. dollar, its decentralized oracle system ensures long-term stability tied to real-world energy dynamics.

The Final Testnet: A Milestone for Alan Orwick and Quai

Quai Network’s journey reached a critical milestone with the launch of its fourth and final testnet, the Golden Age Testnet. The response has been overwhelming, with over 32,000 GPUs participating in mining activities.

“We’re floored by the level of participation,” Orwick shared.

“The testnet’s hash rate puts us on par with mainnet projects like Kadena and Alephium, even though we’re still in testnet mode.”

This milestone sets the stage for Quai’s highly anticipated mainnet launch, targeted for late 2023 or early 2024.

Keeping the Community Engaged

Despite the long development timeline, Quai has managed to maintain strong community engagement. Orwick attributes this to the project’s unique vision and its ability to combine foundational blockchain principles with emerging trends like AI and decentralized infrastructure.

“We’re bringing fresh perspectives to blockchain by reviving narratives like PoW while exploring new possibilities like energy-tied stablecoins,” he said.

“Our mission keeps people excited, and we’re committed to showing up every day to build something impactful.”

Quai Network’s innovations promise to redefine how blockchain interacts with real-world systems, from energy markets to global finance. As the team prepares for its mainnet launch, Orwick remains focused on building a blockchain that prioritizes decentralization, scalability, and long-term sustainability.

You can watch the full interview here.

About Alan Orwick

Alan Orwick is the Co-Founder of Quai Network, the only fully scalable and programmable Proof-of-Work Layer 1 designed for global commerce. He also serves as the CEO of Dominant Strategies, the development behind Quai Network devoted to building blockchain tooling and infrastructure.

Previously an Apple software engineer, Alan is committed to continuing to innovate the Quai Network with his engineering skills. His passion for blockchain technology began while he was a student at the University of Texas at Austin, where he founded Texas Blockchain, a student-led blockchain club.