China's Fudan University Builds a Blockchain Exchange for Electricity

China’s Fudan University Builds a Blockchain Exchange for Electricity

Researchers from one of the leading universities in China claim to have developed a blockchain-based exchange, not to trade cryptocurrency but unused power.

A patent application filed by the researchers’ team from China’s Fudan University was revealed on Friday. Initially filed in January the application details the workings of a blockchain-based exchange for electricity that assigns energy sellers and buyers as nodes on the blockchain network and gives them the ability to securely trade unused electricity on the platform, without the involvement of a third-party intermediary.

Nodes can broadcast requests for purchases and sales over the network, post which smart contracts will connect matching requests, based on information about volume and price, and then finally trigger transactions. The mechanism of the proposed electricity exchange is similar to that of a decentralized cryptocurrency exchange.

The research team stated that the reason behind developing the exchange is the growing supply of renewable energy in the country, especially solar power generated by Chinese households, which is often in excess of the requirement in many regions.

The researchers added:

“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 patent application further explained that a digital currency would be used to facilitate transactions between buyers and sellers, over the blockchain network.

Although the document doesn’t reveal or hint at any particular cryptocurrency, the system has so far been made to be built on 2 blockchain systems, according to the research team.

The document states:

“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,”

Read the complete patent application here.

Follow us on Telegram, and Twitter !

Please follow and like us:

Leave a Response