Deal Dive: Can blockchain improve weather forecasts? WeatherXM believes so
Accurate weather forecasts are crucial for industries like agriculture and for preventing and mitigating damage from severe weather events or natural disasters. However, achieving accurate forecasts is extremely challenging. This is why the founders of WeatherXM have been working to enhance weather forecasts for the past 12 years.
In 2012, Manolis Nikiforakis, Stratos Theodorou, and Nikos Tsiligaridis launched an app that allowed community members to provide grassroots weather updates. They later served as consultants to enterprise clients, such as the Athens airport, in weather-sensitive industries. Currently, they are developing WeatherXM, a network of community-monitored weather stations that collect and share local weather data using blockchain technology.
Nikiforakis, CEO of WeatherXM, stated to TechCrunch that the startup has already deployed 5,000 of its weather stations in over 80 countries. These stations gather local ground weather information and are overseen by volunteers who are rewarded with WeatherXM's own cryptocurrency token, $WXM. All the collected data is accessible to the public for personal use at no cost, with paid options available for commercial users.
The startup recently secured a $7.7 million Series A funding round led by Faction, a blockchain-focused fund associated with Lightspeed, with contributions from VC firms like Borderless Capital, Alumni Ventures, and Red Beard Ventures, among others. The funding will be utilized to grow the team and gear up for monetizing commercial clients.
Tim Khoury, a partner at Faction, was attracted to investing in the company due to its appealing use case for a community-driven blockchain project that has both a supply of participants and a demand for its offerings. The potential market size for more precise weather data also played a role in the decision.
Nikiforakis explained that the crypto incentive structure is essential for the local weather network's success. Paying each station overseer individually would be too costly and complex to scale. Utilizing cryptocurrency helps coordinate station placement and acts as a governance tool for community decision-making.
WeatherXM's commitment to open-sourcing data, particularly from stations in underserved areas, could benefit communities facing climate challenges without substantial resources. The startup's mission is focused on creating an ecosystem for industry advancement and making weather data accessible to all.
While the idea of bringing weather to the blockchain is ambitious, the ultimate impact will depend on demand. However, WeatherXM's dedication to transparency and collaboration is a step in the right direction for improving meteorology and disaster preparedness.