World’s First Blockchain-Based Electricity Exchange is a Reality
Chinese researchers plan to design a blockchain-powered trading platform for unused power.
Surprisingly, it seems that decentralized exchanges are not dedicated only to crypto assets. A group of researchers from China’s Fudan University has filed a patent in January on an unusual integration of blockchain technology. The document was published on Friday and it reveals details of a decentralized-based electricity exchange through which sellers and buyers will be able to trade unused energy using the block nodes. Operations will take place without the need for an intermediary.
Through the network, nodes will receive bids requests, then using smart contracts will match the best requests, according to the volume and price criteria. Transactions will be based on a system similar to that of decentralized cryptocurrency exchanges.
The project comes as a result of high demand for renewable energy in China, especially solar power produced in higher quantities than it needs by households. The researchers declared:
“Households then have no other choices but to let the unused solar power go to waste because they don’t have a direct way of exchanging electricity.”
The network will use a cryptocurrency
According to the document, transactions will be managed using a cryptocurrency aimed to simplify the operations. Currently, it is not known which virtual currency will be accepted.
“This idea can be achieved in either a public, private or a consortium blockchain. And in this case, the system has been developed on IBM’s Hyperledger platform as well as the ethereum blockchain, to make electricity tradeable and shareable within a community,” the document cites.
To read more about check the Fudan University Patent Application.