Mitsubishi Electric to Develop A Blockchain-Based Energy Trading System With Tokyo Tech
The adoption of blockchain technology has received a massive boost as a university R&D team, and an electronic giant is collaborating to launch an energy-based blockchain system.
The two parties Tokyo Tech, and Mitsubishi, said the project, upon completion, will support a more scalable and flexible peer-to-peer trading on energy.
High Demand for Blockchain Platforms
Blockchain-based platforms are now in very high demand, as some countries are currently developing different blockchain-based platforms that will support different sectors of the economy. The technology has been hailed as a futuristic technology, leading to more efficiency and improved flexibility.
Not long ago, an Australian firm, Power Ledger, partnered with Thailand’s Digital Energy Development (TDED) to develop a blockchain-based digital energy platform in the country.
Similar Energy Blockchains Available in the Past
Thailand is among the Asian countries with plans to increase their electricity generation via renewable energy. The collaboration with Power Ledger is expected to increase electricity generation through renewable energy sources, and blockchain is the technology.
Power Ledger also revealed that it wants to leverage the collaboration with TDED to collaborate with other organizations that may be interested in using its blockchain energy trading technology.
In the Mitsubishi-Tokyo Tech partnership, the plan is to roll out a peer-to-peer energy trading system that can engage both prosumers and consumers as buyers and sellers via the blockchain platform.
This new distributed-optimization algorithm is a bit different from several blockchain technologies. This one, after completion and testing, will allow customer computers to share trading goals and data. With blockchain technology, the users can match buy and sell orders.
Tokyo Tech and Mitsubishi call this technology a “new mining method,” which can be carried out on a micro-computer server.
Four Steps for Energy Trading Method
There are four steps requires to complete the energy trading method.
Firstly, the buy and sell information will be on a common trading goal and shared by the computing servers at a determined period.
Afterward, each of the servers can search for the buying and selling orders that match the common goal in the first step.
The third step involves each server sharing their search results. Then finally, each of the connected servers gets the search results and generate a new block, allowing the selection of trades that meet the desired shared goal.
Additionally, to make sure participants engage in fair trading, each shared goals are executed in a decentralized way. This means that no single server has the monopoly of deciding the outcomes, as equivalent matches are selected from random.
Ensuring Maximum Availability of Surplus Electricity
Mitsubishi and Tokyo Tech also announced that the system’s flexibility means that both the sellers and buyers can trade below or above the bid price as long as the right match is seen.
Those who cannot execute any trade can update the terms of their next offer to assess the previous bid/offer condition.
The partnering parties said the end goal is to ensure a maximum amount of surplus electricity for trading on the market.