Mitsubishi, Tokyo Tech Unveil Blockchain Platform for P2P Energy Trading
Mitsubishi Electric has joined hands with academics from Tokyo Tech, the esteemed Japanese university, to collaboratively structure a blockchain technology powered trading platform that can facilitate versatile, P2P (peer-to-peer) trading.
The recent platform, unveiled on January 18, is aimed to assist in the effective utilization of excess power that is produced from sustainable energy resources.
Specifically, it is trusted that the trading platform can guarantee that at any given point in time, the maximum possible excess electricity is made available for consumers.
P2P (peer-to-peer) energy trading systems permit producers and consumers to involve in straight forward trading as sellers and buyers.
To turn their latest platform less dependent on hardware and huge amount of calculations, both companies have custom built their blockchain platform with the purpose of maximizing matches and ensure efficiency in handling buying and selling orders.
As per the media release, a distributed-optimization algorithm distinct from several blockchain technologies, facilitates client systems to distribute their trading objectives and info, leading to optimal matching of “buy and sell orders utilizing minimum computations.”
In addition to the need for lesser computations, what Tokyo Tech and Mitsubishi refer their latest “mining method” can be processed on a micro-computing server. The four measures that form the basis of the method are given below:
“In the first step, information on buy and sell orders with a common trading goal (market surplus, profit, etc.) are shared by computing servers during a predetermined timeframe. Second, each server searches for buy and sell orders matched to the common goal in the first step. Third, each server shares its search results. In the fourth and final step, each server receives the search results and generates a new block by selecting trades that best meet the shared goal, which it adds to each blockchain.”
Furthermore, to guarantee fairness in trading, the lookout for a solution for every common objective happens in a decentralized way i.e. simultaneously in several systems where comparable data are chosen in an unmethodical manner.
The versatility of the platform guarantees that sellers and buyers can transact below or above bid prices in case of a suitable match. Those who are not successful in making a trade can also amend the terms of their consequent bid after studying the earlier offer/bid criteria.
Mitsubishi and Tokyo Tech believe that by guaranteeing the maximum possible excess power for market transactions, the price of eco-friendly consumer products such as electric run vehicles will decline. By suggesting a P2P (peer-to-peer) solution, the responsibility will not be on the shoulders of retail power companies to take actions in response to market volatility.
Blockchain-powered digital energy systems have been functioning for a while in certain countries. Power Ledger, the Australian company, for illustration, provides blockchain powered transaction energy systems that includes P2P (peer-to-peer) energy trading and virtual power producing facilities, in addition to trading in carbon credits and sustainable energy certificates.
Mitsubishi and Tokyo Tech have stated that following the assessment of the system’s functioning at the start of April, their intention is to launch the product quickly in the market.