Mitsubishi Electric has collaborated with researchers at the prestigious Tokyo University of Japan to develop a blockchain-based trading system that can support more flexible peer-to-peer energy trading.

The new system was announced on January 18 and is designed to support the efficient use of excess electricity generated from renewable energy sources. In particular, it is hoped that the trading system will be able to ensure that the market will always have the maximum excess capacity available to consumers.

Peer-to-peer energy trading installations allow consumers and consumers to participate in direct trade as buyers and sellers. To make the new system less dependent on computationally intensive high-volume computing, Mitsubishi Electric and Tokyo Tech have adapted their blockchain system to simplify referrals and improve the efficiency of buy and sell order clearance.

According to the announcement, a distributed optimization algorithm, unlike most blockchain technologies, allows clients’ computers to share their trading targets and data, then “optimally aligning buy and sell orders with a minimal account.” In addition to the need for fewer calculations, what Mitsubishi and Tokyo Tech call the “new mining method” can run on a small computer server. This method consists of four steps:

“In the first step, data on buy and sell orders for the purpose of common trading (market profit, profits, etc.) is sent by data servers over a predetermined period of time. Second, each server searches for buy and sell orders that are compatible with the general purpose in” Third, each server shares its search results. In the fourth and final stage, each server receives the search results and creates a new block, choosing which trades are best all in line with the overall goal it adds to each blockchain. ”
Moreover, in order to ensure fair trade, a solution is sought for each common goal in a decentralized manner – that is, in parallel on multiple computers, where the corresponding matches are randomly selected.

The flexibility of the system ensures that buyers and sellers can trade above or below the bid prices if the correct match is found. Those who are not trading can also change the terms of the post offer based on the evaluation of previous offers / trading conditions.

Mitsubishi and Tokyo Tech expect that by ensuring the maximum amount of energy surplus available to trade in the market, the cost of sustainable consumer goods such as electric cars will decrease accordingly. By offering a peer-to-peer solution, the agency will no longer require utility companies to respond to market fluctuations.

As previously reported, blockchain-based digital energy platforms have been operating in other countries for some time now. For example, Australian company Power Ledger offers blockchain-based energy transaction solutions that include peer-to-peer energy trading and virtual power plants, as well as trading in carbon credits and renewable energy certificates.

Mitsubishi and Tokyo Tech announced that after evaluating the system, which began in April, their goal is to commercialize the product as quickly as possible.

Source: CoinTelegraph