Can Blockchain Make Weather Forecasts Better? WeatherXM Thinks So

Accurate weather forecasts are essential for many industries, especially agriculture, and are crucial in preventing and mitigating harm from severe weather events or natural disasters. Despite advancements in meteorology, achieving high accuracy in weather forecasts remains challenging. WeatherXM, a startup founded by Manolis Nikiforakis, Stratos Theodorou, and Nikos Tsiligaridis, aims to address this issue by leveraging blockchain technology and community-driven data collection.

The Genesis of WeatherXM

In 2012, the founders launched an app enabling community members to provide grassroots weather updates. They later worked as consultants for enterprises in weather-sensitive sectors, such as the Athens airport. Building on this experience, they developed WeatherXM, a network of community-monitored weather stations that collect and share local weather data using blockchain.

A Network Powered by Blockchain

WeatherXM’s CEO, Manolis Nikiforakis, explains that the startup has deployed 5,000 weather stations in over 80 countries. These stations collect local weather data, monitored by volunteers who are compensated with WeatherXM’s own cryptocurrency, $WXM. This data is available for free for personal use and has paid options for enterprises that wish to use it commercially.

“We are strong advocates of open source,” Nikiforakis said. “Our mission is meaningless without collaboration. We make all this data openly available to anyone. You can see in real-time what every weather station is reporting.”

Recent Funding and Expansion

WeatherXM recently raised $7.7 million in a Series A round led by Faction, an early-stage blockchain-focused fund affiliated with Lightspeed. Other participants included Borderless Capital, Alumni Ventures, and Red Beard Ventures. The funds will be used to expand the team and start monetizing commercial users.

Tim Khoury, a partner at Faction, was drawn to the company due to its compelling use case for a community-driven blockchain project. “The demand side is critical,” Khoury said. “If there isn’t demand for what is being generated, you can’t sustain the network over time.”

The Role of Crypto Incentives

Initially, the integration of blockchain and crypto tokens in WeatherXM’s model might seem perplexing. However, Nikiforakis explains that the crypto incentive structure is essential for scaling the network. Paying individuals to oversee weather stations would be too costly and complex. Instead, crypto incentives encourage users to participate and help deploy weather stations in crucial areas, such as developing and rural regions.

“Crypto rewards work as a coordination tool,” Nikiforakis said. “This is a community project, and the crypto acts as a governance tool. People can vote using this token on decisions that influence how the project works.”

Open Source and Community Collaboration

WeatherXM’s commitment to open source data is a significant aspect of its mission. By making weather data from underserved and rural areas accessible, the startup enables communities to better prepare for and respond to climate emergencies. This approach facilitates collaboration between public and private entities, promoting more effective planning and response to climate events.

“We need to create an ecosystem around our technology and ideas for the industry to move forward, for meteorology to improve,” Nikiforakis said. “We are opening the data to everyone, moving away from the old ways where data was siloed and restricted.”

The Road Ahead

WeatherXM’s innovative approach of combining blockchain with community-driven data collection holds promise for improving weather forecasts. By incentivizing volunteers with crypto tokens and making data openly available, the startup aims to create a more accurate and collaborative weather forecasting system. As climate change continues to pose significant challenges, initiatives like WeatherXM could play a crucial role in enhancing our ability to predict and respond to severe weather events.